Unified License Services

Comprehensive telecom licensing framework enabling operators to offer internet and internet telephony services across India. License category (A, B, or C) determines the operational scope and service area.

Category A - National License

Key Features:

Pan-India operational authority
Broadband & leased line services
Internet telephony (VoIP)

Ideal For:

Large telecom operators, enterprise service providers, and infrastructure companies looking to establish nationwide networks. Enables serving government projects, multi-state corporations, and pan-India digital initiatives.

Coverage Area:

All 22 telecom circles across India including major metropolitan areas like Delhi, Mumbai, Bangalore, and rural regions.

Category B - State License

Key Features:

State-wide operational authority
Urban and rural broadband coverage
Last-mile connectivity solutions

Ideal For:

Regional ISPs, cable operators expanding to broadband, and state-focused digital service providers. Perfect for establishing strong presence in specific states with potential to upgrade to Category A.

Coverage Area:

Entire state including all districts and major cities. Can cover multiple telecom circles within the licensed state.

Category C - District License

Key Features:

District-level operations
Focus on underserved areas
Affordable broadband solutions

Ideal For:

Local entrepreneurs, small ISPs, and community networks targeting specific districts. Excellent for bridging digital divide in rural/semi-urban areas with potential to upgrade to Category B.

Coverage Area:

Specific telecom district(s) including small towns and villages. Can cover one or more adjacent districts within a state.

Unified License Framework

A comprehensive licensing framework enabling service providers to offer multiple telecom services under a single license with flexible authorization options.

Need for a Unified License

  • Telecommunication Services such as voice, data and video are now being rendered through single networks bringing about a convergence in networks, services and devices.
  • It is imperative to move towards convergence of networks, platforms, technologies and overcome the segregation of licensing, registration and regulatory mechanisms to enhance affordability, increase access, delivery of multiple services and reduce cost.
  • Accordingly, there was a need to unify all the services in a single license.

Approach to Unified License

  • The cafeteria approach (pay as you eat) supports service providers with much lower net worth and capital requirement to enter the market with one or more services.
  • Small service providers are important for sustaining and enhancing competition in important and niche segments of Telecom services.
  • Service providers can obtain Unified License with authorization for any number of offered services, with option to add more services later as per business requirements.

Structure of Unified License

  • Organized into two parts: 'License Agreement' and 'Schedule to the License Agreement'
  • Schedule is divided into Part-I (Chapters I-VII) with common terms applicable to all services
  • Part-II (Chapters VIII-XVI) contains specific terms and conditions for respective 9 services

Authorization Services

Authorization under Unified License comprises for any one or more services listed below:

  • Unified License (All Services)
  • Access Service (Service Area-wise)
  • Internet Service (Category-A with All India jurisdiction)
  • Internet Service (Category-B with jurisdiction in a Service Area)
  • Internet Service (Category-C with jurisdiction in a Secondary Switching Area)
  • National Long Distance (NLD) Service
  • International Long Distance (ILD) Service
  • Global Mobile Personal Communication by Satellite (GMPCS) Service
  • Public Mobile Radio Trunking Service (PMRTS) Service
  • Very Small Aperture Terminal (VSAT) Closed User Group (CUG) Service
  • INSAT MSS-Reporting (MSS-R) Service
  • Resale of International private Leased Circuit (IPLC) Service

Special Features of Unified License

  • Delinking of spectrum allotment from licensing - Grant of UL does not confer any right to allotment and use of spectrum
  • Simplification of licensing regime - One license covering all telecom services with cafeteria approach
  • Addressing market complexities - Uniform License Fee, removal of cross-holding restrictions
  • Facilitate convergence of services and network - Stepping stone towards service convergence
  • Technology neutral - Permitted to use any Technology for provision of services
  • Roll out conditions linked with spectrum allocation date instead of license signing date

Financial Conditions (In Rs Crore)

Sr No. Service Minimum Equity Minimum Networth Entry Fee PBG FBG Application Fee
1 UL (All services) 25 25 15 44 8.8 0.010
1 Access Service 2.5 2.5 1 (0.5 for NE & J&K) 2 0.4 0.005
2 NLD 2.5 2.5 2.5 0.5 1 0.005
3 ILD 2.5 2.5 2.5 0.5 1 0.005
4 VSAT Nil Nil 0.3 0.1 0.06 0.005
5 PMRTS Nil Nil 0.005 0.002 0.002 0.0015
6 GMPCS 2.5 2.5 1 0.5 0.2 0.005
7 ISP "A" Nil Nil 0.3 0.4 0.02 0.005
8 ISP "B" Nil Nil 0.02 0.02 0.002 0.0015
9 ISP "C" Nil Nil 0.002 0.001 0.0002 0.001

General Terms and Conditions

Definition of Networth:
  • Sum total of paid up equity capital and free reserves & surplus net of accumulated losses
  • Networth of promoters/equity shareholders not counted for determining company networth
  • Requirement of maintenance of minimum networth during currency of license has been done away with
Paid up Capital:
  • Licensee shall maintain required minimum paid up equity during currency of license
  • Compliance report to be submitted on 1st day of January and July every year
AGR and License Fee:
  • Definition of Gross Revenue and AGR separately provided for each service
  • License fee is 8% of AGR, with minimum of 10% of Entry Fee from second year
FDI:
  • 100% FDI permitted in Telecom Sector
  • FDI up to 49% through automatic route, beyond requires FIPB approval
  • Compliance reports to be submitted twice yearly

Penal Provisions

Sr No. Service Authorization Maximum Penalty per violation
1 ACCESS 50 Crore
2 NLD 50 Crore
3 ILD 50 Crore
4 ISP Cat A 1 Crore
5 ISP Cat B 20 Lakh
6 ISP Cat C 10 Lakh
7 GMPCS 50 Crore
8 PMRTS 10 Lakh
9 VSAT CUG 1 Crore

Standard Operating Procedure

Signing of ISP License Agreement - SOP

SOP Flow for License Agreement Signing

1

Applicant/Company Submission

  • Submit required documents to LSA (Local Service Area)
  • Documents include:
    • Entry fee receipt
    • Bank Guarantees (BGs)
    • Undertakings
  • Include address of place of signing
2

LSA Review

  • LSA views Letter of Intent (LOI)
  • Coordinates with applicant to resolve any queries
3

SS Portal Processing

  • Application processed through SS portal
4

Internal Coordination

  • SO LSA, NO LSA, and SOP coordinate
  • DS Cell involved in process
5

BG Submission Policy

  • BGs kept with LSA
  • Extension requests forwarded to DS cell if ER submitted
  • If not submitted within 90 days, intimated to DS
  • BGs may be returned if requirements not met
6

Signing Policy

  • SO signs agreement after NO LSA scrutinizes BGs
  • Agreement forwarded to CCA
7

License Issuance

  • License issued after successful completion
  • DS intimates to M(T)
8

Final Approval Process

  • Create file/mail attaching LOI, POA
  • Obtain DDG approval for SO to sign License Agreement
  • BGs and POA can be downloaded from portal
  • Coordinate through email/phone to fix Date of Signing (DOS)
Final

Completion

  • Sign the License Agreement
  • Mail first 3 pages of signed copy to DS
  • NO maintains License agreement and DDG approved file for records

Important Notes:

  • Approval file must contain only LOI and POA (no FR or BG)
  • Maintain lists of companies that crossed 45 days and those provided extensions
  • Ensure proper documentation at each step