Process for NLD License in India
To obtain the license to become a National Long Distance Service Provider, you need to take the following steps:
- Furnish the required documents for NLD License.
- File the online application for a License for National Long Distance Service.
- Fulfill the financial and performance bank guarantee requirements.
- Obtain the NLD License.
How to become an NLD service provider in India?
Application Submission
- The application will be decided within 15 days of the application submission, and the applicant company will be informed accordingly.
- Suppose the applicant is eligible for a grant of license for NLD Service. In that case, the applicant will have to deposit a non-refundable Entry Fee and submit Bank Guarantees and other documents.
- The applicant will then have to sign the license agreement immediately within three months from the date of issue of the letter.
- In case of failing to do so, it will be presumed that the applicant is no longer interested, and the application will be rejected.
Application Rejection
Suppose the applicant is found to be not eligible for the grant of license for NLD Service. In that case, the applicant will then be informed accordingly so that he can file a fresh application by removing the deficiencies.
NLD Licensing Fee structure:
Adjusted Gross Revenue
- In addition to the entry fee and net worth, the annual license fee also includes USO contribution, @ 15% of the Adjusted Gross Revenue (AGR).
- The annual license fee, including USO contribution, must be 6% of the Adjusted Gross Revenue.
- The Licence fee must be paid in four quarterly installments during each financial year.
- The quarterly installments of the license fee for the first three quarters of a financial year must be paid by the Licensee within 15 days of the completion of the relevant quarter of the year.
- The Licensee must pay this fee based on the actual revenues for the quarter.
- It must be duly certified with an affidavit by a representative of the Licensee, authorized by a Board resolution coupled with General Power of Attorney.
- For the last quarter of the financial year, the Licensee must pay the license fee by 25th March based on expected revenues for the quarter.
- For delayed payment beyond the said due dates, a penalty as stipulated in the license for delayed payments will apply.
- The Licensee must adjust and pay the difference between the payment made and the actual amount duly payable for the last quarter of the financial year within 15 days of the end of the said quarter.
- The Licensor has the right to inspect books of accounts of the Licensee, or it can have an independent audit conducted to ascertain the correctness of the license fee paid.
Spectrum and Equipment
The fee or royalty for the use of spectrum and possession of wireless telegraphy equipment must be paid as per the prescription of the Wireless Planning & Coordination Wing.
The fee/royalty for the user spectrum /possession of wireless telegraphy equipment depends upon various factors such as frequency, hop and link length, area of operation, etc.
Financial Bank Guarantee
The applicant company shall submit a Financial Bank Guarantee (FBG) of Twenty crore rupees one year after signing the license agreement or before the commencement of service. An FBG is valid for a period of one year and can be renewed from time to time as directed by the Central Government.
License Validity
The license for NLDO is issued on a non-exclusive basis. Therefore, the period of license validity is 20 years. Also, the validity is extendable by 10 years at one time for inter-circle Long Distance operations within the territories of India.
Regulations by the Authority
- The Department of Telecommunications can restrict the Licensee Company from operating in any sensitive area from the National Security angle.
- To maintain the privacy of voice and data, monitoring must only be conducted after gaining authorization from the Union Home Secretary or Home Secretaries of the States/Union Territories.
- For monitoring traffic, the licensee company must provide access to their network and other facilities and books of accounts to the security agencies.
- In case of not adhering to Licence conditions, the license (s) granted to the company will be canceled, and the Licensor will encash the performance/financial bank guarantee(s). In addition, the Licensor will not be liable for loss of any kind.