Sorry for the mis-represented title. There is in fact, nothing easy about starting an ISP in India.
But wait. Before you leave, you must know that it can be made so.
All you need to know are the right ways to obtain the ISP License.
What is ISP License in India?
When people ask how to start a business of selling internet services, there question is often how to get ISP License in India. An ISP License is the legal permission, a certificate of registration of an ISP centre. It’s obtained from the Department of Telecommunication after a stringent ISP registration process that involves:
- Application filing.
- Document submission
- Depositing the bank guarantees
- And Signing the ISP License agreement.
Let’s tell you the steps of making the above easy.
First, build a strong ISP foundation
It’s often only the first step that would be the most difficult for, and it’s this: make a decision about ISP license category.
Starting an ISP can be quite an exciting endeavour, but you need to pace yourself and make realistic choices. Those choices are based on your financial stability and your technical knowledge. As per them, there are three ISP License categories that you can choose from:
- ISP category A: It’s the most expensive license, but it allows you to provide internet services across the whole country.
- ISP category B: It’s not as expensive as category A, it allows you to provide internet access to one state or one metropolitan city.
- ISP category C: It’s the least expensive license, and it allows you to provide in remote areas, small villages and towns covered under one SSA.
The cost of starting an ISP would vary a lot depending upon the license you choose. So choose wisely.
Register your company
The Department of Telecommunication doesn’t accept applications from individuals. You need to approach it as a company to get a chance at getting the ISP License. But for that, you first need to register your business as a company. The steps associated with that are as follows:
- Choose Company Name
- File a RUN application to get approval for that name.
- Draft the objective and regulations documents of the company
- File the company incorporation application
- Get certificate of incorporation
Reach out to a telecom service provider
Even if you’re an internet service provider, you don’t have the power to produce bandwidth that enables you to provide the internet services. For those, you need to reach out to an established telecom service provider like Airtel Jio and quite a few others.
As an ISP, you’d be buying the bandwidth from them and reselling it to your subscribers. So, find a TSP that can sell you the bandwidth at a reasonable – by that we mean cheap – price. Doing so would let you make large profit margins even if you choose to sell your services at a “reasonable” price.
File the online application for ISP License
File the online application for ISP registration. Known as the UL ISP application, it’s a form that’s common for all the ISP categories. It’s the details you provide and the options that you choose that inform the DOT of your chosen type of ISP. Along with the application form also submit the following ISP license documents:
- Certificate of incorporation
- Memorandum of association
- Articles of association
- List of directors and shareholders
- Net worth certificate of the company
- Audited Balance sheet of the company
- Description of your business.
Receive the letter of intent
After the assessment of your application, if no errors are found, you’ll receive a Letter of Intent. A letter of intent is the final document proving that you can, after this step, provide internet services. The letter entails the following details:
- Financial bank guarantee requirement
- Performance bank guarantee requirement
- Entry fee requirement
Fulfil the above requirements, and submit the proof of them to the Department of Telecommunication. It would respond with a signed ISP license agreement with him.
Once you obtain the registration, if you still haven’t signed an agreement with a telecom service provider, you’d need to sign one within 30 days of receiving the said registration.
Finally, you’d be able to start an ISP in India…..as per the category of your license.
How to easily start an ISP? It’s quite simple, but the steps you need to take are big. Read this article and ponder upon those requirements before getting assistance from Registrationwala.