If you want to start an ISP on a budget, you require a VNO license. Issued by the Department of Telecommunication, it’s one license that has the advantage of costing less than the standard license. Additionally, the cost of starting a VNO ISP after you acquire this license is also lower because no less requirement of heavy infrastructure.
That’s not to say that getting the license and maintaining your hold over it is easy. The Department of Telecommunication has put forth several general conditions that one needs to follow to obtain this license.
There are more than 20 of them. However, for the sake of simplicity, and to prepare yourself to get this license online, we are going to discuss the top 7 among them.
VNO license can only be applied for by an incorporated business entity
It’s no news that only a company can handle complex corporate businesses. It’s the same story with starting an ISP. To be considered for the this license, you need to first incorporate your business as a company. It’s a task that you can easily fulfil if you reach out to a Chartered Accountant or a Company Secretary.
The Department will issue the license on non-exclusive basis
When you’re applying for the VNO license, do so without the fear that others people have opted for the same service within the same service area. To foster and promote competition in the marketplace, the Department of Telecommunication issues the license on a non-exclusive basis.
There is only one license per application
One company can only obtain a single VNO license. However, in case you want to cover multiple different regions with your internet services, you can do so by mentioning them in the application when you apply for this license online.
Whether or not you’d be granted permission to provide the services in multiple regions would depend on certain terms and conditions specified by the VNO.
VNO license entails a payment of a non-refundable application processing fee
To request the Department of Telecommunication to process your application, you’ll need to pay a non-refundable UL VNO ISP fee. It will be the application processing fee that you’d need to pay at the time of filing the VNO ISP license application.
It will only be granted if your company adhere to the capital requirements
There are capital requirements to obtain the VNO ISP License in India. The amount of net worth required depends upon the nature of the VNO you want to start. When to get VNO ISP license, you apply online, the guidelines you see will tell you how much your net worth should be to apply for the license.
To prove that you adhere to the net worth requirements, you need to present the DOT with your audited net worth certificate.
VNO License allows you to create your own service delivery platform
After you’ve fulfilled all the requirement of the this license, including the payment of UL VNO entry fees and submission of bank guarantees, you’ll be granted the license.
Once you start your operations, you can do so using your own service delivery platforms without any hinderance from the Department of Telecommunication.
It doesn’t grant you a spectrum
As a VNO ISP, you’re a reseller of internet bandwidth. Simply put, you’re not a producer, you’re a reseller. It means that you don’t get the permission to produce bandwidth to provide internet services in India.
It’s one matter to know how to get VNO license and it’s another to know about the guidelines of the said license. If you want to know more information in this regard, feel free to reach out to us.