1. Internet services were launched in India on 15th August, 1995 by Videsh Sanchar Nigam Limited. In November, 1998, the Government opened up the sector for providing Internet services by private operators. A liberal licensing regime was put in place with a view to increase Internet penetration across the country. The New Telecom Policy 1999 envisaged opening up of internet Telephony where upon Government decided to permit ISPs to process and carry voice signals (Restricted Internet Telephony) with effect from 1st April 2002.
2. In the year 2007, the Government decided to issue a single licence under ISP guidelines dated 24.08.07 which permits restricted Internet Telephony for the ISPs under the Internet Service License.
3. Guideline for Unified License (UL) was issued on 19th August 2013. As per UL Guidelines, the authorization for provision of Internet Services is granted under Unified License (UL). The applicant company has to apply for Unified License with authorization for Internet Services.
4. Under the Unified License, there are three Categories of authorizations for Internet Services namely Category ‘A’, ‘B’ and ‘C’. The details are available in the UL Guidelines on DoT website under the Caption ‘Unified License’. The Entry conditions are as below
| Service | Minimum Equity (Rs. Cr.) | Minimum Networth (Rs. Cr.) | Entry Fee (Rs. Cr.) | PBG (Rs. Cr.) | FBG (Rs. Cr.) | Application Processing Fee
(Rs..cr) |
|
ISP “A” (National Area) |
Nil | Nil | 0.300 | 2.000 | 0.100 | 0.005 |
|
ISP “B” (Telecom circle/Metro Area) |
Nil | Nil | 0.020 | 0.100 | 0.010 | 0.0015 |
| ISP “C” (SSA) | Nil | Nil | 0.002 | 0.005 | 0.001 | 0.001 |
5. The detail Terms and Conditions of the UL (Internet Service) are available on DoT website under the caption ‘Unified License’.
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