ISP License Signing Process Flow
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
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
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
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
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
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
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 Category-wise Requirements
Coverage
Pan-India operations across all telecom circles
Financials
- Entry Fee: ₹30 Lakh
- PBG: ₹40 Lakh
- FBG: ₹2 Lakh
- Application Fee: ₹5,000
Coverage
State-level operations (including Mumbai/Delhi as separate circles)
Financials
- Entry Fee: ₹2 Lakh
- PBG: ₹2 Lakh
- FBG: ₹2,000
- Application Fee: ₹1,500
Coverage
District-level operations (SSA/Telecom District)
Financials
- Entry Fee: ₹2,000
- PBG: ₹1,000
- FBG: ₹200
- Application Fee: ₹1,000
Special ISP License Conditions
Internet Telephony
Allowed under ISP license with specific numbering restrictions and interconnection guidelines
IPTV Services
Permitted with content restrictions and MIB registration requirements
Public Wi-Fi
Can be offered under PM-WANI framework with additional registration
Security
Must comply with CERT-IN directives and maintain logs for 180 days
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Internet Access & IPTV: The Licensee may provide Internet access including IPTV. Subscribers shall have unrestricted access to all Internet content except content restricted by the Licensor/designated authority under law.
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VPN/Closed User Group Services: The Licensee shall not offer VPN/Closed User Group services. IPTV content shall comply with laws in force.
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Internet Telephony: The Licensee may provide Internet Telephony through Public Internet by using Personal Computers (PC) or IP-based Customer Premises Equipment (CPE) for:
- PC to PC; within or outside India.
- PC/device/adapter conforming to TEC or International Standards in India to PSTN/PLMN abroad.
- Devices/adapters conforming to TEC or International Standards connected to ISP nodes with static IP addresses; within or outside India.
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Voice Communication Restrictions: Voice communication to and from a telephone connected to PSTN/PLMN/GMPCS using E.164 numbering is prohibited.
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IP Addressing Scheme: The addressing scheme for Internet Telephony shall conform to the IP addressing scheme of IANA and shall not use the National Numbering Scheme/Plan for Basic/Cellular Telephone services.
Licensed Activities
Allowed Activities
- Internet access
- Restricted Internet Telephony
- IPTV, after taking permission
- Setting up International Internet Gateways, after taking permission
Restricted Activities
- VPN Services
- Full-fledged Internet Telephony
- Interconnectivity with PSTN/PLMN Networks
- Translation of E.164 numbering scheme to IP address and vice versa
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 | 50,000 | 30,00,000 | 40,00,000 | 2,00,000 |
| B | Telecom Circle/Metro city (Delhi, Mumbai) | 15,000 | 2,00,000 | 2,00,000 | 20,000 |
| C | District (Secondary Switching Area) | 10,000 | 20,000 | 10,000 | 2,000 |
Penalties
Penalty under UL ISP and UL(VNO) ISP
| Category | Service Area | Maximum Penalty per Violation (Rs) |
|---|---|---|
| A | All India | 1 Crore |
| B | Telecom Circle/Metro city (Delhi, Mumbai) | 20 Lakh |
| C | District (Secondary Switching Area) | 10 Lakh |
Note: In case of security breach, a penalty of up to Rs 50 crore per occasion may be imposed.
Security Requirements
- CDR/IPDR for Internet including Internet Telephony Service to be maintained for a minimum period of one year.
- Log-in/log-out details of all subscribers for services provided such as internet access, e-mail, Internet Telephony, IPTV etc. to be maintained for a minimum period of one year.
- List of Internet Lease Line (ILL) customers to be placed on a password-protected website in the prescribed format.
- Login ID/Password to be provided to concerned DDG (TERM) of DoT. Online updation of ILL customers’ data by Licensees should be done. This information shall be accessible to authorized Government agencies.
- Periodical inspections to be carried out at the premises of ILL customers to check possible misuse and possible interconnection of Internet leased line with PSTN, PLMN, GMPCS network.
Lawful Interception and Monitoring
- Lawful Interception and Monitoring (LIM) systems of requisite capacities are to be set up by LICENSEEs for Internet traffic including Internet telephony traffic through their Internet gateways and/or Internet nodes at their own cost, as per the requirement of the security agencies/Licensor prescribed from time to time.
- In case the Licensee obtains Access spectrum for providing Internet Service / Broadband Wireless Access using the Access Spectrum, the Licensee shall install the required Lawful Interception and Monitoring systems of requisite capacities prior to commencement of service.
- However, for nodes of Licensee having upstream bandwidth from multiple service providers, the Licensee may be mandated to install LIM/LIS at these nodes, as per the requirement of security agencies. In such cases, upstream service providers may not be required to monitor this bandwidth.
- In case the Licensee has multiple nodes/points of presence and has capability to monitor the traffic in all the Routers/switches from a central location, the Licensor may accept to monitor the traffic from the said central monitoring location, provided that the Licensee is able to demonstrate to the Licensor/Security Agencies that all routers / switches are accessible from the central monitoring location. Further, on making any such change in the network, Licensee shall demonstrate, if so required by the Licensor, compliance to the above conditions and the decision of Licensor in this regard shall be final.
Blocking of Websites
- As per Information Technology Act, 2000 [Section 69A] and rules made thereunder, the directions for blocking of website for access by public is issued by Group Coordinator, Cyber Law Division, Ministry of Electronics & Information Technology (MeitY).
- Under Information Technology Act 2000, “Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules 2009” were notified on 27.10.2009.
- As per the directions of Group Coordinator, Cyber Law Division and as per various Court orders, instructions for blocking/ unblocking of websites/URLs are issued by Department of Telecommunications to Internet Service Licensees.
IPDR Parameters
IPDR Parameters format (for IPv4/IPv6)
| Sr. No. | Parameters | Remarks |
|---|---|---|
| 1 | Name of person/organization | Photo ID & Address Proof are required to be maintained separately by the Service Providers |
| 2 | Address | |
| 3 | Contact No. | |
| 4 | Alternate Contact No. | Optional |
| 5 | E-mail Address | |
| 6 | Landline /MSISDN/ MDN /Leased circuit ID for Internet Access | |
| 7 | User ID for Internet Access based on authentication | |
| 8 | Source IP Address with Source Port * | Refer note (b) for NATing |
| 9 | Static /Dynamic IP Address Allocation | Whether Static/ Dynamic |
| 10 | Destination IP with destination Port * | Refer note (b) for NATing |
| 11 | IST Start Time of IP address allocation (hh:mm:ss) | |
| 12 | IST end Time of IP address allocation (hh:mm:ss) | In case of dynamic IP allocation or change of IP |
| 13 | Start Date of IP address allocation (dd/mm/yyyy) | |
| 14 | End Date of IP address allocation (dd/mm/yyyy) | In case of dynamic IP allocation or change of IP |
| 15 | Source MAC Address / Other device Identification number | In place of customer device MAC address, virtual MAC address of DSLAM/routing device is captured in some of the systems |
| 16 | IMSI and SIM type | Only in case of Mobile, IMSI and type of SIM (Physical or eSIM) to be stored |
Note: Sr. No. 1 to 5 above may be sourced from Customer Acquisition Form (CAF).
Violation Cases
- Sub-Leasing of License/Service provisioning and Billing by Franchisee Company
- Selling/providing the services outside the authorized service area
- Violation of FDI Norms
- Security vetting of Managing Director, Chief Executive Officer (CEO) and/or Chief Financial Officer (CFO) of Licensee company, if held by foreign nationals
- Remote Access Server without permission
- ISP not having WPC clearance for the tower in the network
Documents Required for New License Application
- Particulars of the company such as Name, Registered Office, Corporate Office address is verified in respect of application form and other documents submitted by the applicant.
- Certificate of Registration duly signed by the authorised signatory.
- MOA/AOA (object clause as per guidelines) duly signed by the authorised signatory.
- Net-worth Certificate claimed in application form, duly signed by CA/CS and countersigned by the authorised signatory.
- Minimum Equity Certificate (if claimed) duly signed by CA/CS and countersigned by the authorised signatory.
- Paid up capital certificate
- Networth certificate of the company
- Board resolution regarding the statutory audit appointment
- Foreign equity share holding certificate
- Power of Attorney duly signed by authorised signatory.
- Board Resolution duly signed by authorised signatory
- The receipt of processing fee.
Internet Service Provider
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The Licensee may provide Internet access including IPTV. Subscribers shall have unrestricted access to all Internet content except content restricted by the Licensor/designated authority under law.
-
The Licensee shall not offer VPN/Closed User Group services. IPTV content shall comply with laws in force.
-
The Licensee may provide Internet Telephony through Public Internet by using Personal Computers (PC) or IP-based Customer Premises Equipment (CPE) for:
- PC to PC; within or outside India.
- PC/device/adapter conforming to TEC or International Standards in India to PSTN/PLMN abroad.
- Devices/adapters conforming to TEC or International Standards connected to ISP nodes with static IP addresses; within or outside India.
-
Internet Telephony, only as described above, may be provided by the Licensee.
-
Voice communication to and from a telephone connected to PSTN/PLMN/GMPCS using E.164 numbering is prohibited.
-
The addressing scheme for Internet Telephony shall conform to the IP addressing scheme of IANA and shall not use the National Numbering Scheme/Plan for Basic/Cellular Telephone services.
