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Looking to start an Internet business in India? Then we must say you are on the right path because these days the internet has become a part of our daily life. In the last decade, the usage of the internet has increased, and now people are using it on their phones, TVs, and smart devices. So, it is an amazing opportunity to become an Internet Service Provider and obtain an ISP license.
In India, an Internet Service Provider is essentially a business authorized by the Department of Telecommunications to provide internet services at a national level, state level or a district level. A business providing internet services at a district level is known as a local internet service provider.
If you want to become a local internet service provider, check out this blog post to learn about all the important steps you need to fulfill!
If said in a simple way then an ISP license is given to those who provide internet services to individuals and organizations. The Department of Telecommunications (DoT) granted the license to ISP businesses.
After obtaining a license, the company can work as an Internet service provider legally. But before registering the application you must know the types of ISP licenses which you need to obtain as per your needs. To check the categories of ISP licenses as per your region, check this article here.
For a business, a single license is required which is called Unified License and after obtaining this license it is possible to apply for different areas of ISP regions. You must have a unified license to finish the ISP registration in India.
Starting a local ISP business is considered one of the most profitable business ventures today, especially with the increasing demand for high speed internet in both urban as well as rural communities in India. By becoming a local ISP, you can offer reliable internet access to customers within your district/region.
You can build a strong customer base, generate revenue on a monthly basis and play a key role in expanding digital connectivity in the country’s underserved areas.
The following are the types of ISP applicants who can register under DoT are as follows:
Access Provider ISP grants better internet services to users. The service can be provided through Wi-fi, cable modem, telephone lines, fibre optics, dial-up, etc. These providers provide other internet services than usual internet connection.
Mailbox Provider ISP companies use host domain mailboxes to receive and store all mail.
Transit ISP is also known as Hosting ISP as it offers services such as web hosting, email, virtual machines, cloud services, etc.
Virtual ISP provides services to users from another ISP that offers better internet service. But the ISP uses its name to sell the service.
Free ISP provides free internet services to users by displaying advertisements.
The following is the eligibility criteria which should be fulfilled to become an ISP license
To apply for a Unified License, you must have registered yourself as Private Limited (Pvt. Ltd.) or Public Limited (Ltd.) company. Reach out to the experts of Registrationwala if you are unsure.
Your company’s Memorandum of Association (MoA) should have the term ‘Internet Service Provider’ mentioned in it.
For becoming an ISP at a local level, you must register your business under the Companies Act 2013. After business registration, it is essential that you secure Category C ISP Certification to get DoT’s approval to provide internet services at a local level.
It is important to note that individuals cannot become local ISPs since DoT’s authorization is only granted to registered companies.
For becoming an ISP at a district or regional level, you need to make sure you have the following documents in place:
Certificate of Incorporation
Memorandum of Association
Articles of Association
Equity Share Capital Certificate
Foreign Equity Certificate
Shareholder Certificate
DoT Application Form
Net Worth of Company
List of Directors
The process for becoming a local internet service provider includes the following steps:
To provide internet at a local level, first, you need to get company registration with RoC. For this, you must file an application via MCA portal. Once you file an application, RoC will review it. If your application meets all the requirements, your business will receive the certificate of incorporation.
After registering your company with RoC, you need to file an application with DoT to become a local internet provider. Before you file your application, you must ensure you have all the necessary documents such as certificate of incorporation, memorandum of association, articles of association, list of directors, net worth details of the company, etc. Once you make sure all the documents are ready, you can proceed to the next step.
You must file an application with DoT for C Category of ISP. Make sure you fill the application with all the necessary details, and attach all the necessary documents with it. While filing the application, pay the prescribed application fee.
Once DoT receives your application, it’ll review it carefully. If everything is in order, the department will issue a Letter of Intent (LOI). Once you receive the LOI, you must fulfill any remaining requirements like submission of signed LOI and bank guarantee.
DoT will grant you the internet license in Category C if you fulfill all the requirements. The license will remain valid for 20 years from the date of issuance.
The following are the different types of services which an internet service provider can offer:
In TV, cable lines are important to access the internet. A coaxial cable is used to provide high-speed data service. There is a fixed bandwidth that a provider can share with users. And, the speed of data depends on how many users are accessing the internet. Usually, it has an upload speed of 5 – 50 Mbps and a download speed of 10 – 500 Mbps.
In this internet service, fibre optic cables are used for data transmission. Compared to cable, it is much faster. Download speeds can range from 250 to 1,000 Mbps and upload speeds of 250 – 1,000 Mbps. This type of service is best suited for online gamers and heavy internet users.
In this service providers use telephone lines to provide internet services. This service can be easily replaced by cable and fibre services because of its low speed. Its upload speed ranges from 1 – 10 Mbps and download speeds of 5 – 35 Mbps. This service can be suitable for users who don’t need high-speed internet service and don’t have much work through the internet.
The satellite internet connection is divided into two parts- a one-way connection and a two-way connection. In one way connection we can download data through a satellite connection but you require a dial-up connection. And in a two-way connection, both download and upload service comes through satellite service. Its process is slow with upload speeds of 3 Mbps and download speeds of 12 – 100 Mbps.
Below is a list of popular ISPs in India, and it is as follows:
Reliance Jio
Airtel
Vodafone Idea
Hathway
BSNL
If you want to provide internet services at a local level, i.e., district or regional level, you must be a local internet services provider. To be a local ISP, you need to register a company with RoC, and then file an application with DoT for securing ISP license. To become an internet service provider, the main information is shared above. But still, you should take consultation from experts. At Registrationwala, we assist you in the complete process of obtaining an internet service provider license. From filing an application to final receiving of the certificate, we assist you in every step of the process.
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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