ISP License in India

The rapid expansion of the internet ecosystem in India has led to a growing demand for Internet Service Providers (ISPs). To legally offer internet services, businesses must obtain an ISP license from the Department of Telecommunications (DoT). This article breaks down everything you need to know about acquiring an ISP license in India, including the types of licenses, eligibility, and the application process.

Types of ISP Licenses in India

India’s telecom regulatory framework provides three categories of ISP licenses based on the area of coverage:

A. Category A (National Level)

This license allows the holder to operate internet services across the entire country. It requires a higher net worth and license fee compared to the other categories.

B. Category B (Telecom Circle Level)

A Category B ISP license permits operations within a specific telecom circle. It is ideal for medium-sized ISPs targeting large regional markets.

C. Category C (District Level)

This is suitable for small-scale providers who wish to offer services within a particular district or town.

Eligibility Criteria for ISP License

To apply for an ISP license in India, a business must:

• Be registered under the Companies Act, 2013

• Have a clear business plan for telecom/internet services

• Meet the minimum net worth requirements set by DoT

• Ensure 100% compliance with security and technical guidelines

ISP License Application Process

Getting an ISP license involves a series of steps. Here’s a breakdown of the process:

Step 1: Company Registration

You must first register your business as a Private Limited Company or a Public Limited Company under Indian law.

Step 2: Prepare Documentation

Gather all necessary documents such as:

• Certificate of Incorporation

• Memorandum & Articles of Association

• Business plan and network diagram

• Net worth certificate from a CA

Step 3: Submit Application to DoT

You’ll need to submit your application online via the Saral Sanchar portal, along with supporting documents and fees.

Step 4: Payment of Entry Fee and PBG

Once approved, pay the required Entry Fee and submit a Performance Bank Guarantee (PBG) and Financial Bank Guarantee (FBG) as specified.

Step 5: Grant of ISP License

After successful verification, the Department of Telecommunications grants the

ISP license, allowing you to begin operations legally.

Benefits of Holding an ISP License

Having a valid ISP license offers numerous advantages:

• Legal recognition from the government

• Access to interconnect agreements with other telecom providers

• Increased credibility with customers and investors

• Opportunity to expand and scale internet services

Conclusion

An ISP license in India is essential for any business planning to offer internet services. With increasing demand for high-speed connectivity, this license opens the door to a vast and growing market. By understanding the categories, meeting the eligibility requirements, and following the proper application process, your business can tap into India’s digital future.