Network License in India

A Network License is a mandatory authorization from the Indian government, mainly handled by the Department of Telecommunications (DoT) under the Ministry of Communications.

This permit allows a company to set up, run, and provide communication or broadcasting services. The license specifies the scope of services, the geographical area of operation, and the technical, legal, and financial regulations the holder must follow.

India’s network licensing system spans across telecom, broadcasting, internet, and satellite services. Here’s an overview:

1. Telecom Licenses

Telecom licenses are designed for companies providing voice and data services, like mobile calls, broadband, or landlines.

• Issued by the Department of Telecommunications
• Unified License allows multiple telecom services under one framework
• Includes sub-categories like Access Service, ISP, and Virtual Network Operator (VNO)

2. WPC Licenses

Any entity operating a device that uses radio frequencies must obtain a WPC license.

• Granted by the Wireless Planning & Coordination (WPC) Wing of DoT
• Ensures proper use of the radio spectrum and avoids harmful interference
• Applies to wireless devices like walkie-talkies, radio towers, drones, and satellite phones

3. Broadcasting Licenses

Mandatory for companies distributing or sharing audio-visual content.

• Issued by the Ministry of Information and Broadcasting
• Required for TV channels, FM radio, and DTH services
• Covers uplinking/downlinking, cable distribution, and content guidelines

Note: OTT platforms like Netflix and Hotstar don’t need a broadcasting license but are regulated under the IT Act, 2000, by the Ministry of Electronics & IT (MeitY) and MIB guidelines.

4. The Unified License (UL)

The UL is a wide-ranging license that lets operators provide diverse telecom services under one approval. This makes it easier to do business and can include:

• Long-distance services both within India and internationally.
• Internet services.
• Mobile services, including newer technologies like 5G.

5. Internet Service Provider (ISP) License

An ISP license lets companies provide internet services to homes, offices, and businesses.

Categories:

• Class A: National coverage
• Class B: Telecom Circle or Metro area
• Class C: Secondary Switching Area (SSA)

Key points:

• Required for broadband, Wi-Fi, and leased line services
• Companies must follow rules on data security and reporting

6. Virtual Network Operator (VNO) License

VNOs do not own their telecom infrastructure. They rent networks from other telecom providers and sell services under their brand.

Benefits:

• Lower initial investment needed
• Easier entry into the market
• Good for niche or local telecom services
• Offers customized mobile plans

Several government bodies regulate and issue network licenses in India:

• Department of Telecommunications (DoT): As the primary authority for telecom regulations, the Department of Telecommunications (DoT) operates under the Ministry of Communications and is responsible for issuing the Unified License.
• Wireless Planning and Coordination (WPC) Wing: Also part of the DoT, the WPC Wing handles the management of radio frequency. This includes giving licenses for wireless equipment and services, ensuring proper use of the airwaves.
• Ministry of Information and Broadcasting (MIB): The MIB looks after content broadcasting. It gives out licenses for TV channels, radio stations, and other ways to send out media.
• Telecom Regulatory Authority of India (TRAI): TRAI is an independent regulator. It recommends policy changes, regulates tariffs, monitors interconnection agreements, and ensures quality of service (QoS). It also protects consumer interests and promotes fair competition within the telecom industry.

Note: Telecom companies need license approval from the DoT and must comply with TRAI regulations. Whereas Broadcasting companies need clearance from TRAI and the Ministry of Information & Broadcasting, and must comply with the Cable TV Networks Act, 1995.

Getting a network license is not just a formality; it's a smart and necessary step for your business to operate steadily.

• Stay Legal and Avoid Heavy Penalties

• • Working without a valid network license can lead to big fines, your equipment being taken away, and even jail time.
  • A license makes sure your business follows Indian laws, protecting it from legal trouble.

• Build Trust and Credibility

• • Having a license shows that your business is reliable and aims for good quality.
  • This helps build trust with your customers and assures them of steady and dependable service.

• Higher Revenue and Market Growth

• • With a valid license, your business can legally expand its services.
  • This allows you to reach new customers and markets, leading to more earnings and a bigger share of the market.

• Gain Protection for Your Content and Customer Data

• • Licenses often come with rules that protect your unique creations and demand privacy for customer information.
  • This keeps both your business assets and private customer data safe.

Note: Running telecom or broadcast services without the proper license can lead to serious penalties under laws like the Indian Telegraph Act (1885), Wireless Telegraphy Act (1933), or the Cable TV Act (1995), depending on the type of service offered.

The process of getting a network license in India involves several important steps:

Step 1: Checking the Eligibility Criteria for Your Business

Before applying, make sure your company meets the specific rules for the type of license you want.  These rules often relate to your company's structure, financial strength, and technical skills. Here’s the specific criteria:

• Company Type: Must be an Indian company registered under the Companies Act, 2013. Individuals, partnerships, and LLPs are not eligible.
• Financial Criteria: Your company must meet the minimum net worth and paid-up capital required for the license type.

• • Category A (All India): Minimum net worth ₹7.5 crores, paid-up capital ₹2.5 crores
  • Category B (Telecom Circle/State level): Minimum net worth ₹2.5 crores, paid-up capital ₹50 lakhs
  • Category C (District/SSA level): Minimum net worth ₹30 lakhs, paid-up capital ₹10 lakhs

• Foreign Investment (FDI): FDI is allowed but must follow limits under the telecom sector. Such as:

• • Up to 49% FDI allowed through the automatic route (no prior government approval needed).
  • Above 49% to 100% requires government approval.
  • All investments must comply with DoT and Ministry of Home Affairs (MHA) security clearances.

Step 2: Preparing the Documents Required

• The accurate and complete preparation of all required documents is a critical step. Refer to the “Documents Required for Network License in India” section below.
• Any missing or wrong information can lead to long delays or even the application being turned down.

Step 3: Apply on the Saral Sanchar Portal

• Most network license applications are now submitted online through the Saral Sanchar Portal (saralsanchar.gov.in).
• However, some specialized licenses, like satellite communication, may require offline submissions and extra approvals from departments such as the Ministry of Information and Broadcasting (MIB).

Step 4: From Letter of Intent (LOI) to Final License Approval

• After an initial check of your application, an LOI might be given. This shows the first approval.
• Subsequently, your application undergoes a thorough review, during which you will be required to pay the necessary entry fees and provide bank guarantees.
• Finally, the full license is given once all conditions are met. If all documents are in order, the whole process can take 2 to 6 months.

The document list is long. Prepare them accurately and double-check everything.

1. Foundational Documents

• Certificate of Incorporation: Proof of the company’s legal registration.
• Memorandum of Association (MoA) & Articles of Association (AoA): Outline the company’s objectives and internal regulations.
• Company PAN Card: Required for tax identification purposes.
• List of Directors and Shareholders: Details the company's ownership and management, including required ID and address proofs.
• Power of Attorney (PoA): Authorizes a designated individual to act on the company's behalf during the application process.
• Board Resolution: Formal approval from the company's board to apply for the specified network license.
• Statutory Auditor’s Certificate: Confirms the company's financial standing, including its net worth and paid-up capital.
• Foreign Investment Documents (if applicable): Includes a copy of the foreign partner agreement and any required government approvals.
• Income Tax Return (ITR) or Tax Clearance Certificate: Demonstrates the company's compliance with tax obligations.

2. Technical and Financial Documents

• Technical Specifications of Equipment: Detailed information about the network equipment you plan to use. This makes sure it meets technical standards.
• RF Test Report: For WPC licenses, this report shows that your equipment follows the set radio frequency standards and rules.
• Net Worth and Paid-up Capital Certificates: Official proof of your company's financial strength and its ability to pay for the license investment.
• Letter of Intent from MIB : For broadcasting licenses, this shows an early approval for your content or broadcasting plans.
• Network Rollout Plan: A detailed plan showing how the network will be built, including timelines and where it will cover.
• Traffic Forecasts: Predictions of how much the network will be used and how many customers there will be.
• Business Plan: A full plan explaining your business model, how you will reach the market, and money predictions.
• Compliance Undertaking: A formal promise to follow all rules and conditions of the license.
• Bank Guarantees: Different licenses require specific bank guarantees to ensure service and financial commitments are fulfilled. These include:

• Performance Bank Guarantee (PBG): Needed for licenses like Unified License (UL), Internet Service Provider (ISP), and Virtual Network Operator (VNO). It ensures the company will meet its service obligations.
• Financial Bank Guarantee (FBG): Required for licenses such as Infrastructure Provider (IP-1) and certain other services to guarantee financial commitments.

The amount for PBG and FBG depends on the license type and service area, like all India, telecom circle, or district level.

A network license opens the door to a wide range of services and products, helping different business operations:

• Providing Mobile and Internet Services (Voice, SMS, Data): This covers the main communication services for both individual users and businesses, including the provision of 5G services.
• Offering Enterprise Solutions and Cloud Services: Providing dedicated communication systems and cloud-based services for businesses, like leased lines, VPNs, and data center connections.
• Supporting New Technologies like IoT and M2M: Extending connections to new and upcoming technologies, such as the Internet of Things (IoT) and Machine-to-Machine (M2M) communication, enabling smart solutions.
• Broadcasting and Content Distribution: Includes traditional TV/radio broadcasting as well as distribution via modern streaming platforms.

A Network License Certificate is an official document issued by the Department of Telecommunications in India, allowing a company to legally operate telecom or internet services within a specific category (such as ISP, VNO, NLD, or ILD). It proves that your business is authorized to offer network-based communication services under the terms of the Unified License or a specific category license.

The certificate contains your company’s legal name, license category, license number, area of operation, and validity period. It is a critical document for launching and running a telecom or internet-based service in India.

You’ll need the Network License Certificate for:

• Starting operations as an Internet Service Provider (ISP), Virtual Network Operator (VNO), or similar
• Applying for IP addresses and Autonomous System Numbers (ASNs)
• Participating in government tenders
• Partnering with infrastructure providers or other telecom entities
• Proving regulatory compliance during audits

Having a valid license certificate builds trust with customers, regulatory bodies, and telecom partners.

How to Download the Network License Certificate?

If you need a digital copy of your Network License Certificate, follow these steps:

1. Visit the DoT SARALSANCHAR Portal: Go to saralsanchar.gov.in.
2. Log in with your credentials: Use the login ID and password you received during the application process.
3. Go to ‘My Applications’: Click on the appropriate section to view your approved licenses.
4. Select the license: Choose the specific license (e.g., ISP-B, VNO) for which you need the certificate.
5. Download the PDF: Click on the download link to get a digital copy of your Network License Certificate.
6. Save and print: Store it securely and keep printed copies for legal or operational use.

Network License is often required during network deployment, compliance checks, or when applying for IP allocations from authorities like IRINN or APNIC.