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If you want to provide internet services to individuals and organizations, you must set up an Internet Service Provider (ISP) business. It is important to note that not every business can operate as an ISP. Only businesses with a prior approval from the Department of Telecommunications (DoT) are authorized to function as ISPs in India. This authorization is issued in the form of a license known as the ‘ISP license’.
Apart from this requirement, there exist other requirements as well, including technical requirements to set up an ISP business like internet bandwidth, network operations and AAA servers among others. In this blog post, we shall discuss the major technical requirements one by one.
The technical requirements for establishing an ISP business are explained below:-
One of the most important technical requirements for an ISP business is the internet bandwidth. You must collaborate with large ISPs (tier 1 or tier 2) and purchase “wholesale” or “upstream” internet bandwidth from them. Once you purchase it, you will be able to resell it to your customers through various internet plans.
Confused about what a network operations center is? It is nothing but a central, secure, climate-controlled room or data center where your main equipment is located. This hub is required to keep an eye on network activity and looks for errors in real time.
AAA server stands for Authentication, Authorization and Accounting servers. These servers are required for management of user logins, restrict access and track data usage for the purpose of billing.
You must decide whether you want to connect customers to the internet via cable (fibre) technology or wireless internet technology. The technical requirements will vary accordingly.
In case of cable, you will require an optical line terminal, fiber optic cables, splitters and optical network unit. In case of wireless technology, you will require towers/antennas, base station equipment and customer premises equipment.
An ISP business requires certain softwares and tools. To handle customer sign-ups, service packages and automatic billing, having a Billing and Customer Management System is a must. A Network Management System is also required for the purpose of monitoring network uptime, traffic usage and keeping an eye on the quality of signals.
For an ISP, having a reliable power backup is of utmost importance. In case the hub loses power, the customers would lose their internet. Therefore, to ensure uninterrupted power supply, it is necessary to have battery backups and diesel generators.
In addition to this, there needs to be an air conditioning system that can keep the server equipment cool and prevent shutdowns.
The ISP infrastructure must remain secure. For this, a layered defence strategy is required. This strategy includes using strong firewalls to block harmful traffic, setting strict access rules so only authorized users can get access and network segmentation to isolate critical services such as DNS, mail and databases.
The ISP should also secure their devices against cyber attacks. They must have the appropriate systems that can handle the DDoS attacks. In addition, they must regularly monitor network activity, test for weaknesses, use multi factor authentication for secure access and have a clear plan so that they can quickly respond to and report any security incidents.
Apply for Your ISP License Now
To set up an ISP business, there are several technical requirements that must be carefully planned and then properly implemented. Some of the most important technical requirements include (i) internet bandwidth, (ii) network operations center, (iii) AAA server, (iv) technology for internet distribution, (v) softwares and tools for billing and traffic usage, (vi) infrastructure for power supply and cooling and (vii) network security and cyber security measures. If you want to start and operate your business successfully, fulfilling such requirements is necessary.
Want to learn how to register as an internet service provider with DoT? Check out the following link to learn about the eligibility requirements, documentation and process → https://www.registrationwala.com/isp-license. If you need further assistance, you can contact our consultants at Registrationwala.
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Hi, I'm Sachin Chawla. I’m a commerce graduate from Agra University and a Chartered Accountant (2015) with DISA certification. I focus on helping businesses with formation, management, tax and FEMA matters, business licenses and regulatory compliance, IP advisory, risk management and auditing among others. Through my articles, I aim to share my expertise and provide practical guidance in these areas.
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