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(81)HowcanonestartaninternetbroadbandserviceprovidercompanyinIndia?Quora
Howcanonestartaninternetbroadbandservice
providercompanyinIndia?
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ELIGIBILITYCRITERIAFORINTERNETSERVICE
PROVIDERSAPPLICATIONFORMANDLICENCEAGREEMENT
FINALISEDTHREETIERLICENCEFORINTERNETSERVICES
TheDepartmentofTelecommunications(DoT)hasfinalisedthestandard
ApplicationFormandLicenceAgreementforInternetServiceProviders
(ISPs).ThisisafollowuptotheannouncementoftheNewInternetPolicy
GuidelinesbytheGovernmentinNovember,1997basedonthereportofthe
committeeheadedbyDrBimalJalantogiveaboosttoInternetuseinIndia.
TheGovernmenthaddecidedtofreelypermitprivateopertorstoprovide
Internetservice.
Thelicenceswillbeissuedtoalleligibleapplicantsonsubmissionof
completedapplicationsinaprescribedform.Theapplicationformscontaining
theguidelines,generalinformationandthedetailsofthelicenceagreement
willbeavailableonsaleattheHeadquartersofTelecomCommission,Delhi,
andtheTelecomCirclesoutsideDelhi,from18thFebruary,1998onwards.The
broadguidelinesandtermsandconditionsoftheISPlicenceare:
ELIGIBILITYCRITERIA:AcompanyregisteredinIndiaunderthe
CompaniesAct,1956willbeeligibletosubmittheproposalforproviding
InternetService.ForeignequityshallbeaspertheGovernmentpolicyand
guidelinesissuedfromtimetotime.Atpresent,theforeignequityispermitted
totheextentof49percent.Thereisnorequirementfortheapplicant
companytohaveanypriorexperienceininformationtechnologyor
telecommunicationservices.
SERVICEAREA:TheInternetserviceareashavebeengroupedintothree
categories.Separatelicenceswouldbegrantedtoanycompanyforeachservice
area.
CATEGORY'A'SERVICEAREA:ThisincludesthewholeofIndia.
CATEGORY'B'SERVICEAREA:Thisconsistsofeachoneofthe20
TerritorialTelecomCirclesandthefourMetroTelephoneSystemsofDelhi,
Mumbai,CalcuttaandChennaioftheDoT.However,ifalicenceforthe
TelephoneSystemsoffourmajorcitiesofAhmedabad,Bangalore,Hyderabad
andPuneisrequired,thesewillalsobetreatedasCategory'B'ServiceAreaon
aparwiththeTelecomCircles.
CATEGORY'C'SERVICEAREA:ThisincludesanySecondarySwitching
Area(SSA)withtheirgeographicalboundariesdefinedbyDoTason1.4.1997.
TheSSAsofeachofthefourMetroTelephoneSystemsofDelhi,Mumbai,
CalcuttaandChennaiandTelephoneSystemsoffourmajorcitiesof
Ahmedabad,Bangalore,HyderabadandPunewiththeirgeographical
boundariesdefinedason1.4.1997,however,standexcludedfromCategory'C'
astheyalreadyformaseparateCategory'B'ServiceArea.
PERFORMANCEBANKGUARANTEE(PBG):Aperformancebank
guaranteeofRs.2croreforeachCategory'A'ServiceArea,Rs.20lakhforeach
Category'B'ServiceAreaandRs.3lakhforeachcategory'C'ServiceAreavalid
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(81)HowcanonestartaninternetbroadbandserviceprovidercompanyinIndia?Quora
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fortwoyearsfromanyScheduledBankintheprescribedproformashallbe
submittedalongwiththeapplicationforeachServiceArea.
LICENCEFEE:Thelicencefeeshallbewaivedforaperiodoffiveyears
upto31.3.2003.Thelicencefeetobepaidrelatingtotheperiodstartingfrom
1.4.2003bythelicenseecompanywillbeintimatedonorbefore1.4.2001and
shallbepayabletotheTelecomAuthorityirrespectiveofthetimeofentryofan
ISP.
PERIODOFVALIDITYOFTHELICENCEANDITSEXTENSION:
Thelicenceshallbevalidforaninitialperiodoftenyearsunlessotherwise
terminated.Ifrequestedbythelicensee,extensionmaybegrantedbythe
TelecomAuthorityonsuitabletermsandconditionsforaperiodoffiveyearsor
moreatatime.
TARIFF:ISPswillbefreetofixtheirowntariff.Thetariffwillbeleftopento
bedecidedbymarketforces.However,theTelecomRegulatoryAuthorityof
India(TRAI)mayreviewandfixatariffatanytimeduringthevalidityofthe
licencewhichshallbebindingontheLicensee.
NUMBEROFLICENCESFORISPs:Applicantswillberequiredtosubmit
separateaplicationforeachServiceArea.Anapplicantcompanymaybe
grantedanynumberoflicences.Therewillalsobenolimitonnumberof
licencesthatcanbegrantedinaparticularServiceArea.Theleasedline
subscribersoftheServicewillbefromwithintheServiceAreabutthedialup
accesssubscriberscouldbelocatedanywhereinthecountry.
TECHNICALREQUIREMENTS:TheISPswillberequiredtosetuptheir
nodes/serverswithinthegeographicallimitsoftheServiceArea.Theyshalluse
InternetProtocol(IP)andshallmeetthetechnicalrequirementsoftheISPs
(DoT/MTNL/VSNL/otherISPs)towhichtheyareconnected.Theequipment
usedbytheprivateISPsshallbeinconformitywiththeInterface/Protocol
requirementsasapplicable.
EMAILANDVSATSERVICELICENSEES:ExistingEMailandVSAT
ServiceLicenseesmayalsoobtainseparateISPLicenceforanynumberofthe
abovementionedServiceAreassubjecttothefulfilmentoftheeligibilitycriteria
andshallimplementtheserviceindependentoftheirexistingnetwork.AnISP
mayprovideInternetservicetoanyVSATcustomer(whocouldbeservedbya
licensedVSATserviceproviderorcaptiveprivateVSATnetwork),iftheVSATis
locatedwithintheServiceAreaoftheISP.
INTERCONNECTIVITY:Directinterconnectivitybetweentwoseparately
licensedISPsshallbepermitted.Internationaltrafficshallflowonlythrough
DoT'sInternetNode,i.e.,DoT'sInternetAccessServices(DIAS)orVidesh
SancharNigamLimited(VSNL)'sInternetgateway,i.e.,GatewayInternet
AccessServices(GIAS).TheISPsshallhaveoptiontoconnecttheirInternet
nodeeithertoDoT'snodeorVSNL'sgatewaydirectlyforthepurposeof
deliveryofinternationaltraffic.
ThelicenseemayobtainthetransmissionlinksonleasefromDoT,licensed
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BasicServiceOperatororanyotheroperatorspeciallyauthorisedtoleasesuch
linestotheISPs.Thelicenseemayalsoestablishitsowntransmissionlinks
withinitsServiceAreaforcarryingtrafficrelatedtohisserviceonlyprovided
thatsuchcapacitiesarenotavailablefromanyotherauthorisedagenciesand
subjecttothepermissionTelecomAuthority.
Resourcesrequiredforoperationoftheservicesforextendingthemoverto
thenetworkofupstreamserviceprovider(DoT/VSNLetc.)oranyotherservice
providerlicensedbytheAuthority,includingtimeframeforprovisionofthe
same,willbemutuallyagreedbetweentheparties.
VOICEOVERINTERNET:VoiceoverInternetisnotpermitted.
DELIVERYOFTHESERVICE:Thelicenseeshallberesponsiblefor
installation,testingandcommissioningofalltheequipmenttoprovidethe
serviceincludingconnectivitytoDoT'sDIASorVSNL'sGIASfordeliveryof
Internettraffic.Theperiodofimplementationofthelicencewillbe18months
fromthegrantof
OBSCENEMATERIALANDCYBERLAWS:Flowofobscene,
objectionable,unauthorisedoranyothercontentinfringingcopyrights,
intellectualpropertyrightandagainstinternationalanddomesticCyberlaws
(asandwhenestablished)inanyformovertheISP'snetworkisnotpermitted.
COSTOFAPPLICATIONFORMANDPROCESSINGFEE:Anominal
costofRs.1000/fortheApplicationFormandRs.5000/towardsprocessing
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feeforeachapplicationwhicharenonrefundablehavebeenprescribed.
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