ISP License Service Provisions
Comprehensive regulations governing Internet Service Providers under the Unified License framework
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.
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: ₹10,000
Coverage
State-level operations (including Mumbai/Delhi as separate circles)
Financials
- Entry Fee: ₹2 Lakh
- PBG: ₹2 Lakh
- FBG: ₹20,000
- Application Fee: ₹10,000
Coverage
District-level operations (SSA/Telecom District)
Financials
- Entry Fee: ₹20,000
- PBG: ₹10,000
- FBG: ₹2,000
- Application Fee: ₹10,000
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
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 | 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 |
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).
Parameters to be stored in SYS LOG of Network Address Translation (NAT) for Internet Access
| Sr. No. | Parameters |
|---|---|
| 1 | Start Date (mm:dd:yyyy) & Time (hh:mm:ss) |
| 2 | End Date (mm:dd:yyyy) & Time (hh:mm:ss) |
| 3 | Source IP Address |
| 4 | Source Port |
| 5 | Translated IP Address |
| 6 | Translated Port |
| 7 | Destination IP Address |
| 8 | Destination Port |
| 9 | Static /Dynamic IP Address Allocation |
Note:
a) Term SYSLOG here refers to Logs for Network Address Translation.
b) Aforesaid parameters shall also be applicable for NAT mechanism for Dual Stack in IPv6 Network.
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.