What is ISP License for MSO?

ISP License for MSO

Table of Contents 1. What is ISP (MSO)?

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2. ISP/MSO License Process

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4. What are the Fee and Timeline for ISP (MSO) License?

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ISP (MSO) ISP (Internet Service Provider) License is necessary to run the business of Broadband in India. Any MSO can apply to obtain the ISP License UL (Unified Licensing) System. UL License is given by DoT and it is valid for 20 Years. An Internet Service Provider (ISP) is the industry term for the company that is able to provide you with access to the Internet, typically from a computer. If you hear someone talking about the Internet and they mention their “provider,” they’re usually talking about their ISP. Your ISP makes the Internet a possibility. In other words, you can have shiny computer with a built-in modem and could have a router for networking, but without a subscription with an ISP, you won’t have a connection to the Internet.

An ISP is your gateway to the Internet and everything else you can do online. The second your connection is activated and set up, you’ll be able to send emails, go shopping, do research and more. The ISP is the link or conduit between your computer and all the other “servers” on the Internet. You may feel like you’re talking to your mom directly through email, but in reality it’s more “indirectly.” Your email goes from your computer, to the ISP computers/servers, where it’s sent along to its destination through other servers on the network.

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ISP (MSO) Process Procedure as detailed below: 1. The Government of India has come up with one license for all telecom related services.

2. To obtain an ISP license, you require a registered company under the Companies Act, 1956.

3. The next step to obtaining an ISP license is to know / decide which category of license you require – category A, B or C In India, there are 3 different categories of licenses to become an internet service provider, depending upon the City/State/ Town/District/Village you want to start your ISP business in.

The 3 categories of ISP licenses are: * Class A (National Area) * Class B (Telecom Circle/Metro Area) * Class C (Secondary Switching Area) Naturally, a Class A ISP license would be quite expensive, followed by Class B & C respectively.

4. After you have chosen your ISP license category, you will need to fill out an application form.

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5. Once you have submitted your application form along with the required documents & fees, the Department of Telecom will review your application & respond to you, the applicant, in under 60 days, as far as practicable i.e. in case there are any issues with your application, there may be a delay in the issuing of a response from the DOT. If there is no problem with your complete application, the DOT will issue a ‘Letter of Intent’ in your favor.

However, there are chances that your application may be rejected or delayed due to non-compliance with legal, security, hardware, commercial and contractual compliance and human errors such as incomplete form submission.

6. f there are no issues with your application form for obtaining the ISP authorization under the Unified License, the DOT will issue a ‘Letter of Intent’ in your favor. Once the Letter of Intent is issued, * You will have to submit the one-time entry fee (as mentioned in the table above) along with the required bank guarantees. * Furthermore, you will have to submit a signed license agreement with the DOT and any other documents required, including the documents mentioned in the Letter of Intent.

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* Do note that the one-time entry fee is non-refundable & once the Letter of intent is issued, all the above requirements have to be fulfilled within a specific period that will be mentioned in the Letter of Intent.

7. If everything goes smoothly, you will be issued an ISP authorization under the Unified License for a period of 20 years. The DOT will contact you / mail you directly to inform you whether you have been issued the ISP License.

PROCESS A: Company related documents 1. A certified copy of the Certificate of Incorporation of the company issued by the Registrar of Companies.

2. A certified copy of Memorandum of Association & Article of Association highlighting the provisions which includes Internet Services under the main objects of the company.

3. Written consent of the company’s board regarding decision of the company to apply for a new ISP Licence and details of the authorized signatory including name and designation along with the specimen signature.This disclosure has to be signed & stamped by a Company Secretary.

Certified copy of Form-18 along-with the copy of challan form

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i.e. GAR-7 (in case registered office address is not mentioned in Certificate of incorporation or the address shown in Certificate of incorporation is different from that given in application form).

PROCESS B: Application Form – Unified License Duly filled application form in the format given by DOT, on your company letterhead under the signature of authorized signatory. * A list of Directors of the company with a few of their details like name, address, nationality etc. and the complete equity structure of the company has to be mentioned in the application form. This gives clarity to the Government about the foreign investment, if any, in the applicant company. This disclosure has to be signed & stamped by a Company Secretary. * A one-time non-refundable processing fee of INR 15,000/- has to be paid in the form of Demand Draft drawn in favor of “Pay & Accounts Officer (HQ), DoT” payable at New Delhi. * The DOT is extremely vigilant about empty spaces in a form.

There have been numerous instances where the DOT rejects an application because of unfilled spaces.

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Thus, it strictly directs the applicant to not leave any item blank.

If the applicant has no information to furnish in a particular item, please mention ‘No’, ‘Nil’ or ‘Not applicable’.

PROCESS C: Foreign Investment related Documents * You will require FIPB Approval if there is more than 49% composite FDI in the applicant company. A copy of FIPB Approval in the name of Applicant Company, certified by the Company Secretary has to be provided if composite FDI (direct and indirect equity) in the applicant company is more than 49%.

PROCESS D: Letter of Intent * After review and examination of the application of the Licensee, the Licensor / DoT will issue a Letter of Intent in favor of the Licensee. The DoT may require such further documents as will be indicated in the Letter of Intent within a specified period of time. * After receiving the Letter of Intent, the Licensee will need to pay a one-time non-refundable entry fee, along with the performance and financial bank guarantees of the appropriate amount in the form of a Demand Draft drawn in favor of “Pay & Accounts Officer (HQ), DoT” payable at New Delhi.

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Important Information: * All documents required for ISP License Application in India must be signed by the authorized signatory.

Needles to say, the DoT may at any time in the future issue such notifications, laws, rules and amendments that may require the Licensee to submit additional documents while applying for the license or during the subsistence of the license.

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Fee and Timeline for ISP (MSO) License Government Fee is Rs. One Lakh which will be paid through Demand Draft (DD) in the name of “Pay & Accounts Officer, Ministry of Information & Broadcasting” Payable at Delhi.

Consultancy Fee is Rs. 20,000 + Service Tax. Processing Time is approx. 2 months and it is subject to discretion of the department.

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