Unified License: VNO License Agreement in India

What is VNO License? 

VNO stands for Virtual Network Operator. Unlike an ISP, they work in a virtual environment to buy bandwidth and resell them to internet subscribers. Department of Telecommunication issues the VNO License India after the applicant fulfils the VNO licensing process.

Why does India need more VNOs?

Internet demand has been the most these days. To cater for these demands, several ISPs are emerging. To provide such a service, normally, you would require an ISP License. However, with more localized demands rising, another subset of ISP Licenses has garnered interest. It is called VNO License. VNO stands for Virtual Network Operator license in India for ISPs that want to provide Internet services within a district or state as it is the most cost-effective choice.

Which to choose between VNO License v/s ISP License

Difference between VNO and ISP License

If you dive deep into the Unified License DoT guidelines, you will notice that an ISP and a VNO are similar in many regards:

• Both are issued to subscribers who want to provide internet services.
• Both have to buy and sell the internet bandwidth to the subscribers.
• There is no online method to apply for VNO License, much like the ISP License.
• A UL VNO License agreement has to be signed by the Licensee and the DOT for the Licensee to begin doing business.

A Unified License means there is only a single license with different classes or categories based on the region you want to provide an internet connection. For example, a Class B VNO License is analogous to the category B ISP License – providing internet to a specific state.

Further Differences:

However, as you dig even deeper into what our VNO ISP License consultants have to say, you'll note that there are many notable differences between the two:

• A VNO license in India, as per the unified license guidelines, is only issued for 10 years. At the same time, it's 20 years of validity those holding the ISP License enjoy.
• Those holding the VNO Access License, the VNO License holders in India, only have to work within a virtual environment to provide internet access, making the hardware requirements low. However, for an ISP, the hardware requirements are high. 

So why does VNO Unified License exist?

ISP Licenses are long-lasting and are armed with better provisions so that if and when you want, you can provide internet services to a wide region if and when you want. But what if you merely want to provide internet services within your district? What should you opt for then? While ISP License's three categories provide a lot of flexibility in choosing the area of license, it can be an expensive affair. To tackle the point of price and make the license more cost-effective, Unified License list VNO exists.

• Its duration is of 10 years. Over this period, any policy change in the UL VNO guidelines can impact the current validity.
• The Bank guarantee is less. You can check the UL VNO bank Guarantee format to confirm the same.
• The UL VNO Entry fee is low. Unlike the UL VNO ISP fee, where you'd have to pay an enormous amount, choosing a VNO will give you the added benefit of affordability.
• Hardware requirements are less because most of what you're doing as one of the VNO ISP License holders in India is done in a virtual environment.
• Due to the above-mentioned benefits, to provide internet within a local region, we recommend choosing a UL VNO License

Categories of VNO License

Just like ISP, VNO License exists in the following three categories:

• UL VNO Category A: Pan India category. If you get this class of VNO License, you can provide internet access across the country.
• UL VNO Category B: Valid in 20 major states. Among all the categories, the VNO Access B License is sought after the most. The VNO License B class fee is lower than that of class A. Furthermore, it provides the most venues for the expansion of your business.
• UL VNO Category C: Valid in a secondary switching area. This VNO ISP License is suitable for small regions like a town, a district or a colony.

Eligibility Criteria for UL VNO License in India  

To obtain a UL-VNO License, your business should be incorporated as per the provisions of the Companies Act 1956.

DoT Regulations

Suppose you want to get a Unified License for Virtual Network Operator (UL-VNO) for your business. In that case, you must strictly observe the regulations put forth by the Department of Telecommunications. Here, we are discussing some of these regulations issued by the Telecom Authority.

1. Foreign Direct Investments (FDI)

• The DoT allows the VNO licensee to accept FDIs upto 100% with 49% under the automatic route. Beyond 49% is allowed only through the FIPB route. These investments are subject to observance of licensing and security conditions by the Unified Licensee as well as investors.
• Both direct and indirect foreign investment in the Unified Licensee Company must be counted to calculate total FDI.
• The VNO Licensee Company or Investment Companies, including their holding companies, must comply with the provisions of the extant FDI policy of the Government. While approving the investment proposals, the Government can take into account security concerns.
• FDI must be subject to the laws of India and not the laws of the foreign country/countries. The VNO Licensee must comply with the relevant provisions of the FDI policy of the Government. The VNO licensee must issue such modifications to the policy from time to time.
• The words such as FDI, foreign equity, investment companies, FIPB, etc., must have the same meaning defined by the Department of Investment & Industrial Policy (DIPP) in its FDI Policy.

2. Equity Capital

• The VNO Licensee must declare the Indian & Foreign equity structure (both direct and indirect) in the Licensee company.
• Also, they must submit a compliance report regarding compliance with FDI norms and security conditions.
• The Licensor must make the declarations on the first day of January and the first day of July of every year.
• The company secretary or statutory auditor must certify the equity structure countersigned by the duly authorized Director of the Licensee Company.

3. Shareholding Arrangement

The VNO Licensee must ensure that any shareholding changes must be subject to all applicable statutory permissions under the laws of India.

• There is no restriction on the number of VNO licensees per service area.
• The DoT allows the VNOs to have unified license agreements with more than one NSO for all services other than the Access service.
• Such services need the numbering and unique identity of the customer.
• For wireline access services through EPABX, the connectivity of different NSOs at different EPABX is allowed.
• However, connectivity with more than one NSO at a particular EPABX is not permitted.
• In UL-VNO, the provision for restriction of equity cross-holding is applicable between
• a VNO or its promoter(s) and another NSO (other than VNO's parent NSO) or its promoter(s) and
• between a VNO or its promoter(s) & another VNO or its promoter(s), authorized to provide access service using the access spectrum of NSO(s) in the same service area.

4. Change in Name

• The Licensee can change the name of its Company, as per the Indian Companies Act, 2013, upon intimation to the Licensor.
• Along with this, the Licensee must submit the certified copy of the name change certificate within 30 days from the date of issue to the Registrar of Companies.

5. Paid-up Equity Capital

• The Licensee must have a minimum paid-up equity capital. This must be equal to the sum of the paid-up Equity Capital required for each Service opted for by the Unified Licensee.
• The minimum paid-up equity capital required to acquire authorization for all the services is Rupees Ten Crore only.

6. Networth Requirement

• The Unified Licensee must have a minimum net worth equal to the sum of the Networth required for each Service.
• The combined minimum Networth under this license for acquiring the authorization for all the services is Rs. Rupees Ten Crore only.
• In the case of UL(VNO) Category B authorization, if the applicant is a legal entity but not a company under the Companies Act, then a Chartered Accountant or a Cost Accountant networth will certify the networth of the VNO license holder.
• The Licensee must not count promoters or equity holders' net worth to determine the Company's net worth.
• While counting the net worth, the Licensee must not convert the foreign currency into Indian Rupees. This conversion must happen at the prevailing rate as indicated by the RBI on the date of application received.

Documents Required for UL VNO License in India 

• Certificate of Incorporation of your Company 
• Memorandum of Association
• Articles of Association
• List of Directors
• List of shareholders
• Nature of business
• Net worth certificate
• Demand Draft or Bharat Kosh receipt of the UL VNO License fee

Process of getting assistance from our UL VNO License in India

Fortunately, for VNO License, an Online application is an option. Know how to apply for VNO License. Anyway, the following are the steps prescribed as per VNO License guidelines:

• Fill out the VNO License application form: The offline VNO License application can be downloaded from the official website. Fill it. Attach the VNO License fee and wait for the response for the VNO license online apply.
• Attach the required documents: The documents for the DoT VNO License registration are the same as the ones for ISP License.
• Let the application be processed. The one that provides the Unified License, the Telecom Regulatory Authority of India, will assess your application and provide you with all the details.
• Receive the letter of intent: Upon acceptance of your application, you'll receive the letter of intent. The VNO ISP License guidelines state that you have to follow further instructions given in it.
• Submit the bank guarantees: Further unified license fee comes in the form of a bank guarantee. Submit and deliver the guarantee agreement to the DOT.
• Get the Unified License VNO: Once you've paid the remaining VNO license price, you'll receive the VNO ISP License. 

Our Assistance in filing the UL VNO License in India 

Are you not willing to pay the enormous professional VNO License cost? Don't worry. As the premier services provider for VNO ISP License, India, Registrationwala only asks for a nominal amount.

VNO License Consultant 

At a low VNO ISP fee, you can get your VNO ISP license in India on time and without any issues with the help of our VNO license consultants. All you have to do is reach out to us and leave the matter of getting you the VNO ISP License to our UL certification consultants. Online apply at our website to check our offers.

It takes courage to move ahead with a business as complex as VNO. If you want to count yourself among the holders on the VNO License list, reach out to our experts.

Frequently Asked Questions - FAQs About VNO License

Q. What is a Unified License in telecom?

A. Unified License meaning implies that a. customer can get all telecom services from a Unified License operator. The operator can use wireline or wireless media.

Q1. What is VNO License? 

A. VNO in india stands for Virtual Network Operator. But what is a VNO license meaning? Unlike an ISP, they work in a virtual environment to buy bandwidth and resell them to internet subscribers. Department of Telecommunication issues the VNO License India after the applicant fulfils the VNO licensing process.

Q2. Why does India need more VNOs?

A. Internet demand has been the most these days. To cater for these demands, several ISPs are emerging. To provide such a service, normally, you would require an ISP License. However, with more localized demands rising, another subset of ISP Licenses has garnered interest. It is called VNO License. VNO stands for Virtual Network Operator for ISPs that want to provide Internet services within a district or state as it is the most cost-effective choice.

Q3. What are the differences between VNO license and ISP license?

A. If you dive deep into the Unified License DoT guidelines, you will notice that an ISP and a VNO are similar in many regards:

·         Both are issued to subscribers who want to provide internet services.

·         Both have to buy and sell the internet bandwidth to the subscribers.

·         There is no online method to apply for VNO License, much like the ISP License.

·         A UL VNO License agreement has to be signed by the Licensee and the DOT for the Licensee to begin doing business.

Q4. What does a Unified license mean?

A. A Unified License means there is only a single license with different classes or categories based on the region you want to provide an internet connection. For example, a Class B VNO License is analogous to the category B ISP License – providing internet to a specific state.

Q5. What is the validity difference between a UL VNO licence and an ISP license?

A. A VNO license in India, as per the unified license guidelines, is only issued for 10 years. At the same time, it's 20 years of validity those holding the ISP License enjoy.

Q6. What is the benefit of having a Unified License over an ISP VNO license?

A. Those holding the VNO Access License, the VNO License holders in India only have to work within a virtual environment to provide internet access, making the hardware requirements low. However, for an ISP, the hardware requirements are high.

Q7. Why should a business choose a UL-VNO license over an ISP license?

A. While ISP License's three categories provide a lot of flexibility in choosing the area of license, it can be an expensive affair. To tackle the point of price and make the license more cost-effective, Unified License VNO exists.

Q8. Can the validity of a UL VNO license be changed?

A. Its duration is of 10 years. Over this period, any policy change in the UL VNO guidelines can impact the current validity.

Q9. Is the entry fee for a VNO license more than an ISP license under the UL chapter of the license agreement?

A. The UL VNO Entry fee is low. Unlike the UL VNO ISP fee, where you'd have to pay an enormous amount, choosing a VNO will give you the added benefit of affordability.

Q10. Why should one choose a Virtual Operator other than an ISP license?

A. Hardware requirements are less because most of what you're doing as one of the VNO ISP License holders in India is done in a virtual environment.

Q11. What are the different categories of a UL VNO License?

A. Just like ISP, VNO License exists in the following three categories:

·         UL VNO Category A: Pan India category. If you get this class of VNO License, you can provide internet access across the country.

·         UL VNO Category B: Valid in 20 major states. Among all the categories, the VNO Access B License is sought after the most. The VNO License B class fee is lower than that of class A. Furthermore, it provides the most venues for the expansion of your business.

·         UL VNO Category C: Valid in a secondary switching area. This VNO ISP License is suitable for small regions like a town, a district or a colony.

Q12. What are the required documents that must be submitted while filing the license application for the UL VNO license in India?

A. The required documentation is as follows:

·         Certificate of Incorporation of your Company 

·         Memorandum of Association

·         Articles of Association

·         List of Directors

·         List of shareholders

·         Nature of business

·         Net worth certificate

·         Demand Draft or Bharat Kosh receipt of the UL VNO License cost

Q13. How to apply for a UL NO license in India?

A. Fortunately, for VNO License, an Online application is an option. Know how to apply for VNO License. Anyway, the following are the steps prescribed as per VNO License guidelines:

1.    Fill out the VNO License application form

2.    Attach the required documents

3.    Let the application be processed. The TRAI will assess your application and provide you with all the details.

4.    Receive the letter of intent.

5.    Submit the bank guarantees.

6.    Get the Unified License VNO.

Q13. How can we help you in filing the UL VNO license application in India?

A. Are you not willing to pay the enormous professional VNO License cost? Don't worry. As the premier services provider for VNO ISP License, India, Registrationwala only asks for a nominal amount.