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How to choose the right category of ISP License?

Author: Vicky Kumar
by Vicky Kumar
Posted: Jan 03, 2021
isp license

Planning to start a company as an internet service provider? Good for you. But, are you ready to take on the task of choosing the right category of ISP?

Being an Internet Service Provider, like anything else, requires precision from your end. You have to focus your efforts into getting the ISP License , even before starting your business. That’s why it’s so important for you to choose the right categories.

But how should you choose it? In this article, we are going to assist you in answering the question of

How to choose the right category of ISP License

Categories of ISP License

Before you dive into the how, let’s get into the what. What are those categories of ISP Licenses:

  1. Category A ISP License: If you’re looking for an ISP that spans across India, you need the category A ISP License. When it comes to purely expansion, it’s one ISP that has the most of what it takes.
  2. Category B ISP License: Metropolitan cities in India are now swimming with the latest technologies. It has given rise to the new needs; need of better internet access. You can give them the option by choosing a category B ISP License – establishing your ISP in one of 20 metropolitan states.
  3. Category C ISP License: For smallest scale of ISP, you can choose to provide internet access to a small region via the Category C ISP License.
Choosing between the categories

As we mentioned in the start, you have to precise when it comes getting the ISP License. To choose which one suits you best, you need to look at the following factors:

  1. Are you looking for business expansion: If you have the capital to back you, and the desire to expand rapidly, choose the category A ISP License. With this particular unified license, you can shoot straight for the stars by setting up a centralized ISP through which you can expand across India.
  2. Do you want to be active in metropolitan regions: If you’re bit more specific as to where you want your clients to be from, you can choose the Category B ISP License. It’s one that you choose if you know your customer base, but are looking for steady growth. If you are looking for business expansion in multiple states, you can get separate license for each of them.
  3. Do you have the budget to handle the requirement: One of the biggest points that stops from getting ISP License is the requirements. We are not only talking about the hardware requirements, for they are going to be high, regardless of your license type. But rather, we are talking about the bank guarantees. When you take into account the ISP License cost, you’d find a large disparity between the price you need to pay for category A ISP License and the price for the Category C ISP License. If you can’t handle the budget yet, go small. While you provide internet access to a small area, you can work towards expanding your business. And once you accumulate enough budget, get the license for another category.
  4. Are you familiar with the customer base: That’s where things get interesting. While many are interested in getting the PAN India license, they are unaware to the reality that many might not need your services. There are many who provide internet services across India (and most of them are the biggest names in the telecommunication sector). For your business to succeed, you have to choose a customer base that you know is in need of internet access. It will give you two advantages:

a. You would already know your customer base

b. You won’t have to spend money on marketing much.


Choosing the right ISP License establishes the whole identity of your ISP Consultants. Can you afford to run such a business? Do you want expansion? Do you want to provide internet access to metropolitan regions? These are the questions that you’re repeatedly facing when you’re looking for an Unified ISP License. Dig deeper into these questions. Set your expectations accordingly. And you’ll get the license.

About the Author

Vicky kumar is a company analyst in IP1 License.

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Author: Vicky Kumar

Vicky Kumar

Member since: Aug 19, 2020
Published articles: 33

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