QTech UL – VNO Licence

Scope

The Licensee may provide Internet access including IPTV. The subscriber shall have unrestricted access to all the content available on Internet except for such content which is restricted by the Licensor / designated authority under Law.

The Licensee shall not offer VPN/Closed User Group services to its subscribers. The content for IPTV shall be regulated as per law in force from time to time.

The Licensee may provide Internet Telephony through Public Internet by the use of Personal Computers (PC) or IP based Customer Premises Equipment (CPE) connecting only the following:

PC to PC; within or outside India

PC / a device / Adapter conforming to TEC or International Standard in India to PSTN/PLMN abroad.

Any device / Adapter conforming to TEC or International Standard connected to ISP node with static IP address to similar device / Adapter; within or outside India.

The Internet Telephony, only as described in previous slide, can be provided by the Licensee.

Voice communication to and from a telephone connected to PSTN/PLMN/GMPCS and use of E.164 numbering is prohibited.

Addressing scheme for Internet Telephony shall conform to IP addressing Scheme of Internet Assigned Numbers Authority (IANA) only and the same shall not use National Numbering Scheme / plan applicable to subscribers of Basic / Cellular Telephone service.

Internet Access & IPTV Services

Licensees are authorized to provide comprehensive Internet access services including IPTV. Subscribers shall have unrestricted access to all Internet content except for content specifically restricted by regulatory authorities under applicable laws.

Content restrictions typically include illegal material, copyright violations, and content threatening national security.

VPN & Closed User Group Restrictions

ISPs are expressly prohibited from offering VPN services or Closed User Group services under this license. All IPTV content must strictly comply with current broadcasting laws and regulations.

Key Compliance Requirements:

Content must adhere to the Cable Television Networks (Regulation) Act

Prohibited from carrying any content banned by court orders

Must implement content filtering for restricted categories

Internet Telephony Provisions

Licensees may provide Internet Telephony services through Public Internet using compliant devices and equipment:

PC-to-PC Communication

Allowed both within India and internationally without restrictions

PC/Device to PSTN/PLMN

Permitted from India to international destinations using TEC-compliant devices

Static IP Device Communication

Allowed for devices with static IP addresses connected to ISP nodes, both domestic and international

Service Restrictions & Compliance

Voice Communication Limitations

Voice communication to and from telephone numbers (PSTN/PLMN/GMPCS) using E.164 numbering is strictly prohibited under this license.

IP Addressing Requirements

The addressing scheme for Internet Telephony must conform to IANA standards and cannot utilize the National Numbering Scheme allocated for Basic/Cellular Telephone services.

Non-compliance with these regulations may result in penalties up to ₹1 crore (Category A) or license revocation.

Infrastructure & Network Requirements

Licensees must establish and maintain robust network infrastructure in compliance with technical specifications outlined by the Department of Telecommunications.

Key Infrastructure Requirements:

Maintain adequate redundancy and failover mechanisms

Implement comprehensive network monitoring systems

Ensure 99.5% network uptime for critical services

Difference between UL & UL VNO

This UL license shall be valid for a period of 20 years whereas for UL VNO, it is only for 10 years

UL can buy IP Pool directly from APNIC/IRINN whereas for UL VNO, it will be the responsibility of the Licensee to obtain IP addresses, domain name, etc. from NSO

UL licensee can own all the active equipment used in providing services whereas UL VNO is not allowed to own all the active equipment and he need to share/take lease from NSO

UL have flexibility to provide services to other ISPs but UL VNO is not allowed to resale the bandwidth to other ISPs which can be done through only NSO which it is parented

Basically, UL VNO is equally to franchisee/channel partner who can do billing on his own tariff plan.

Requirement to furnish information

The licensee shall provide to the licensor, a quarterly report indicating the details of ISP Nodes or Points of Presence with their locations and number of broadband / leased / dial up subscribers. In case new nodes are to be installed, one month prior notice is required to be given to the licensor.

The licensee shall provide to the licensor on regular basis the volume of internet telephony traffic flowing through its network.

In case, the Licensee has authorization for both Access Service and Internet Service in a common geographical area, the Licensee shall declare to the Licensor, prior to commencement of service, the Service authorization (namely Access Service or Internet Service authorization) under which the internet services are to be provided.

Processing Fees

Unified License ISP

Category	Service Area	Application Fee (Rs)	Entry Fee (Rs)	Performance Bank Guarantee (Rs)	Financial Bank Guarantee (Rs)
A	All India	10,000	30,00,000	40,00,000	2,00,000
B	Telecom Circle/Metro city (Delhi, Mumbai)	10,000	2,00,000	2,00,000	20,000
C	District (Secondary Switching Area)	10,000	20,000	10,000	2,000

Unified License (VNO) ISP

Sr No.	Category of License	Service Area	Application Fee (Rs)	Entry Fee (Rs)	Financial Bank Guarantee (Rs)
1	A	All India	50,000	15,00,000	1,00,000
2	B	Telecom Circle/Metro city (Delhi, Mumbai)	15,000	1,00,000	10,000
3	C	District (Secondary Switching Area)	10,000	10,000	1,000

ISP License Signing Process Flow

1

Application Submission

Submit complete application package to LSA
Include required documents:
- Form-1 (Application Form)
- Entry fee payment receipt (Category A: ₹30 Lakh)
- Performance Bank Guarantee (Category A: ₹40 Lakh)
- Financial Bank Guarantee (Category A: ₹2 Lakh)
- Company incorporation documents
- Board resolution for authorization
Specify service category (A/B/C) and coverage area

2

Document Verification

LSA verifies document completeness within 7 working days
Key checks:
- Category-specific requirements (A/B/C)
- Valid bank guarantees with proper wording
- FDI compliance (up to 100% allowed)
- Proper KYC documents for signatories
Raise queries if any deficiencies found

3

Technical Evaluation

Review network architecture plan
Verify compliance with:
- Internet Service Provider guidelines
- Security conditions (LI requirements)
- IPv6 implementation roadmap
- Broadband speed commitments
Assess infrastructure sharing provisions

4

Financial Clearance

Verify bank guarantees:
- PBG validity (minimum 18 months)
- FBG covers estimated license fees
- Bank authorization documents
Confirm entry fee payment clearance
Check for any outstanding dues or penalties

5

Approval Process

Prepare approval file with:
- Letter of Intent (LOI)
- Power of Attorney (POA)
- Technical evaluation report
- Financial clearance certificate
Submit for DDG(ISP) approval
Coordinate signing date with applicant

6

License Signing

SO signs the ISP License Agreement
Verify signatory authority matches POA
Record signing details in ISP database
Capture digital copy of signed agreement

7

Post-Signing Formalities

Email scanned copies to:
- ISP Cell (first 3 pages)
- Finance Wing (for billing setup)
- Technical Wing (for coordination)
Update ISP licensee database
File original documents in secure storage
Intimate Sr.DDG(ISP) about license issuance

ISP Consultancy

Internet Service Provider(ISP)

ISP Services