IPLC License: Monetary requirements for IPLC registration

  • September 23, 2022
  • Registrationwala
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What is IPLC?

IPLC's full form is International Private Leased Circuits. Telecom Companies lease these circuits to establish an infrastructure for international connectivity. The IPLC License is the registration certificate issued to Telecom Companies authorizing them to lease IPLC circuits for global connectivity. The IPLC License provides end-to-end International Private Leased Circuits (IPLC) connection between India and other countries. You can obtain the IPLC circuits from the ILD (International Long Distance) service providers.


DoT Regulations for the IPLC License procurement

But to obtain the ILPC license, the Licensee must conform to the monetary requirements and standards set by the Department of Telecommunications. Therefore, one must learn about such regulations before applying for an IPLC license. This article details the requisite information regarding monetary regulations for IPLC license procurement.


IPLC License Entry Fee

Every IPLC Licensee must pay a one-time non-refundable fee of Rs. 1 crore. The payment must be before the license signing in the form of a Demand Draft or Pay Order. The payment must be made in favor of the Pay & Accounts Officer (Headquarters) of the Department of Telecommunications (DoT).


Net Worth & Paid-Up Capital

The Licensee must maintain a net worth as well as a paid-up capital of 2.5 crore rupees. The applicant must also submit the required certificate to prove their claim. The certificate must be certified by a Company Secretary or its Statutory Auditor with the license application.

The Net Worth composes of the total of paid-up equity capital as well as the Licensee's free reserves. The IPLC applicant must not count the net worth of shareholders to determine its net worth.


IPLCS License: Annual Licensing Fee

After the Entry Fee, the IPLC licensee must submit the annual license fee of Rs. 5 Lakhs or a revenue share of 6% of the total Adjusted Gross Revenue (AGR). The applicant must file the larger amount from the options. The annual licensing fee also includes 5% of AGR in the form of USO contribution.

Furthermore, the IPLC applicant must pay the fee from the date of commencement of service or completion of one year from the license agreement date. In addition, the IPLC applicant must regularly file the settlement regime's full details through accounting rate mechanisms with the Licensor. The IPLC licensee must conduct its bilateral settlements with other operators through normal banking channels.


Financial Bank Guarantee (FBG)

The IPLC Company must submit the Financial Bank Guarantee (FBG) of Rs. 1 crore. The IPLC applicant must submit the FBG within one year from the license agreement effectiveness or before its service commencement.

The filed FBG must have a validity of one year. The IPLC licensee can renew the FBG from time to time for the amount as per the Licensing Authority. The amount of the Financial Bank Guarantee for the subsequent period must be similar to the estimated sum payable for atleast two quarters towards the IPLC licensing fee.

If you are interested in the registration of the IPLC license process, then you can hire a qualified Telecom Consultant and avail of their IPLC service. They will assist you through the entire IPLC registration process. Also, you can avail yourself of more DoT-related services from Telecom Consulting Agencies.


Also read:  Understanding the Types of IRDAI License: A Comprehensive Guide

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