VNO License Online and How much fee is required for each category
Posted: Jun 12, 2021
Internet brings several opportunities; providing internet access is one of them.
Even entrepreneurs with modest amount of money are rushing to obtain the VNO License online. Why?
The simple reason for that is the low UL VNO License fees.
A VNO or a Virtual Network Operator is a business where you don't need to have expensive infrastructure to provide internet. You can just do the following instead:
- You can sign an agreement with a telecom service provider; it can be another ISP.
- That service provider will provide you the network, bandwidth and the hardware to provide internet services.
- You can implement that network at your own service centre. Send the bandwidth you've received from the service provider to the consumer's home or office.
In a way, you're acting as an pseudo-middleman to provide internet services. You only own the virtual network. The rest: hardware, bandwidth, network architecture - all belong to the telecom service provide you're getting services from.How is that beneficial to the telecom provider you might ask?
It's simple. While he or she provides you to bandwidth to resell to customers, you in turn become a sort of part of its franchise - a vehicle for its expansion.
So, without further ado, let's discuss the UL VNO ISP fees for each category for VNO. We wills start with the application processing fee and end with entry fee and bank guarantee(s) that you need to submit at the last stages of getting the license.How does one obtain the VNO License
To understand the structure of the fee that Department of Telecommunication wants you to pay for the right to start a VNO, you should know how to get VNO license. It's a multi-stage process involving the following steps:
- First, you need to setup a company whose purpose would be to provide Internet Services via VNO.
- At this company, you'd now need to convene a board meeting where you would sign off on a board resolution to apply for VNO License online.
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- At this stage, your task would be to select between the three VNO ISP categories:
a. You can make the expensive choice to provide internet to all India by choosing VNO ISP category A
b. You can choose the middle-road and only provide internet access to one metropolitan region by opting the VNO ISP Category B
c. Or, you can choose the cheapest and the most relevant option to provide internet access to one small town or a village by selecting VNO ISP category B.
4. Once you have made your choice, you have all the right details you need to file for VNO license online. Apply with the aid of DOT consultants to prevent any errors in the application. During application filing, the DOT will ask you to pay the application processing fee for the respective types of ISP categories.
- For category A, you're required to pay INR 50,000/-
- For category B, you're required to pay INR 15,000/-
- For category C, you're required to pay INR 5,000/-
- Once your application goes to the Department along with the essential documents, you'd have to wait. Application processing takes time (mostly because the department has to justify the cost). Once the processing is complete and it turns out that your application is without any errors, you get a letter of intent.
- Letter of intent is a document that contains further instructions for you to finally get the license. Among those instructions, there is a mention of how much entry fee and bank guarantee you need to submit before the specified date.
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UL VNO Entry Fee is the amount that you deposit as a tribute to the DOT to get entry into the Internet Service Providing market.
Bank Guarantee is a security that you need to pay in case your VNO business takes a dive in the future. Following is the list of entry fees and bank guarantee you need to pay as per the category of VNO ISP.
a. Entry fee:
- Category A: INR 15,00,000/-
- Category B: INR 1,00,000/-
- Category C: INR 10,000
b. Financial bank guarantee:
- Category A: INR 50,000/-
- Category B: INR 50,000/-
- Category C: INR 5,000/-
7. After the above due-diligence is complete, you'll be issued a UL VNO License.Conclusion
To get VNO License online, apply along with the right application processing fee. If your information is correct and DOT accepts your request, you'll be asked to pay the entry fees and the bank guarantees. While we can't these, we can definitely lower the professional costs to file the application. Reach out to our DOT consultants to know more.
Vicky kumar is a company analyst in IP1 License.