The Complete Checklist for ISP License Compliance in India

Sanjana Singhania
2 hours ago
2 min read

Internet Service Providers (ISPs) play a crucial role in enabling connectivity across India. However, obtaining and maintaining an ISP license in India requires adherence to a range of legal and regulatory compliances. This article outlines a comprehensive checklist to help ISPs stay compliant and avoid penalties.

Understanding the ISP License in India

Before diving into the checklist, it's essential to understand what an ISP license entails. The Department of Telecommunications (DoT) issues the ISP license under the Unified License framework, allowing entities to offer internet services across different categories:

Category A: Pan India
Category B: Telecom Circle/Metro Area
Category C: Secondary Switching Area

Key Requirements for ISP License Compliance

To ensure ongoing compliance, ISPs must fulfill several statutory and operational obligations. Below is a complete checklist to keep your ISP operations compliant.

1. Payment of Entry and License Fees

Timely payment of the Entry Fee at the time of licensing.
Regular payment of License Fees and Revenue Share as mandated by the DoT.

2. Financial and Reporting Obligations

Submission of Annual Audited Financial Statements.
Filing Quarterly Revenue Reports (AGR - Adjusted Gross Revenue).
Regular self-certification of compliance to licensing terms.

3. Infrastructure and Network Compliance

Deployment of Lawful Interception and Monitoring (LIM) systems.
Ensuring network security standards are in place.
Compliance with EMF radiation norms.

4. Subscriber Verification and KYC

Implement strict KYC (Know Your Customer) norms for every subscriber.
Maintain updated subscriber databases for audit purposes.

5. Data Protection and Cybersecurity

Adhere to data protection policies in line with Indian laws.
Implement robust cybersecurity measures to safeguard user data.

6. Adherence to Technical Standards

Follow technical requirements laid down by the Telecom Engineering Centre (TEC).
Regular testing and certification of telecom equipment.

7. Renewal and Amendment Compliance

Apply for license renewal well before the expiry date.
Notify the DoT of any change in company structure or operational status.

Common Pitfalls to Avoid

Staying compliant requires ongoing vigilance. Here are some common pitfalls that ISPs must avoid:

Non-Compliance with Revenue Sharing

Failing to correctly calculate and remit revenue share can lead to heavy penalties and even license cancellation.

Inadequate Subscriber Verification

Lapses in KYC compliance can attract legal action and undermine your operational credibility.

Ignoring Network Security Updates

Outdated security protocols can expose your network to breaches, making it crucial to stay updated with the latest cybersecurity standards.

Conclusion

Compliance with the terms of the ISP license in India is not a one-time task but an ongoing commitment. Following this checklist can help ensure that your ISP business remains legally sound and operates smoothly. For a hassle-free compliance experience, consider consulting a telecom regulatory expert or legal advisor to navigate complex requirements effectively.