Unified License for Virtual Network Operators (UL-VNO):
The Licensee shall provide only those services for which authorization has been granted in the License Agreement even if total amount of Entry Fee paid/payable equals the maximum limit and combined minimum requirement of Networth and Paid up Equity Capital for all services are met.<
Scope of UL VNO License:
This License is granted to provide Service(s) as authorized in the License Agreement and as per the scope defined in relevant chapter(s) of this License Agreement, on a non-exclusive basis in the Service Area as applicable. Services can be provided by Licensee on National Level, Telecom Circle/Metro Area Level as specified in Annexure-II. 22 Service Areas (Telecom Circle/Metro Areas) are defined in Annexure-IV. Administration of authorized services shall be at the respective service area level for all purposes.
Duration of License:
This License shall be valid for a period of 10 years from the effective date of this License. The duration of the License of a VNO shall be fixed as 10 years extendable further for 10 years at a time by the licensor unless revoked earlier for reasons as specified elsewhere in the document. However, depending on technological developments and experience gathered, this duration of license can be reviewed after
3-4 years. The agreement of a VNO with a NSO will terminate with the expiry of the license of either party.
Renewal of License:
The Licensor may renew, if deemed expedient, the period of License by 10 years at one time, upon request of the Licensee, if made during the 09th year of the license period, on the terms specified by the Licensor, subject to extant policy. The decision of
the Licensor shall be final and binding in this regard.
Procedure for Obtaining the UL-VNO License in India
Step 1- Register Company. (PVT LTD, LTD, LLP, Proprietorship, Partnership)
Step 2 – Choose the License Services Under UL VNO
Step 3 – Conditions related to Budgeting and Financing.
Step 4 – Fill in the Application with Requested Documents
Step 5 – Submit the Application.
Step 6 – Issue of Letter of Intent (LOI).
Step 7 – Entry Fee & BG.
List of License Approval under UL VNO
- Unified License (All Services)
- Internet Service (Category-A for National Area with All India jurisdiction)
- Internet Service Category-B for State Level (Telecom Circle /Metro circle)
- Internet Service (Category-C for Secondary Switching Area like City/District level )
- Access Service (Service Area-wise)
- Access Service (Category-B for like City/District level )
- National Long Distance (NLD) Service
- International Long Distance (ILD) Service
- Global Mobile Personal Communication by Satellite (GMPCS) Service
- Public Mobile Radio Trunking Service (PMRTS) Service
- Very Small Aperture Terminal (VSAT) Closed User Group (CUG) Service/INSAT MSS-Reporting (MSS-R) Service
- Re-sale of IPLC (International private Leased Circuit) Service
VNO Entry Fee:
As per DOT guidelines 18.1.1 A one-time non-refundable Entry Fee for each authorized Service shall be paid
as per Annexure-II. The total amount of Entry fee shall be the cumulative Entry Fee of
each authorization subject to a maximum of Rs. 7.5 Crore (Rupees Seven crores and
fifty lakh only).
VNO BANK GUARANTEES:
There are 2 Types of Bank guarantee for DOT License as show below
Performance Bank Guarantee(PBG):
As Licensees would not be forced to create infrastructure therefore no roll out
obligations may be casted upon Licensees. Therefore, no Performance Bank Guarantee (PBG) is prescribed for VNOs License.
Financial Bank Guarantee (FBG):
The Licensee shall submit Financial Bank Guarantee (FBG) separately for each
service and service area for the amount as per Annexure-II,
Definition of ‘Adjusted Gross Revenue (AGR)’:
As per DOT guidelines Point 19.1 The Gross Revenues and Adjusted Gross Revenue (AGR) for the purpose of
calculation of License fee for different services authorized under this license are defined in the respective chapters of the Service in PART-II of this License Agreement.
Benefits & Limitations of VNO License of (Unified License VNO)
For more details please Read License Agreement for Unified License for VNO (Virtual Network Operators)