ISP License and Entry Fees – A Step Backwards

The Government of India wanted to cleanup non functional ISPs, but the consequence of the policy towards this exercise is a burden on existing ISPs which are likely to pass it on to their subscribers – a hefty 6% revenue share clause.

The Government under DoT recommendations have imposed a License Fees, apart from the Entry Fees [Rs 10 or Rs 20 Lakh]. All District level ISPs have to migrate to State or National licenses.

I am wondering what is the rationale behind such a move ? Ministry of Commerce in fact encourages small and medium businesses. As long as these small operators are providing value for money, they will survive, why is the government having vested interest in strangling them ? Their is a terrific demand for Broadband Internet in India and even a dozen ISPs of the scale of Bharti Airtel will be unable to fulfill this demand.

Mr. Amitabh Singhal, Director, ISAPI, said

The new recommendations will do nothing to lift the broadband penetration in the country. The whole exercise has been to merely modify and roll the 1998 policy even further back. It offers no new grounds for innovation, customer benefits and actually throttles the Internet sector, and is unprecedented for any democratic country and its governance of Internet.

Thank you Government of India.

Author: Webmaster

8 thoughts on “ISP License and Entry Fees – A Step Backwards

  1. i want to start the ISP setup in barabanki how i get the licence for that.

  2. Hi Suraj,

    You are targeting only Barabanki area I suppose. There are two options
    1. Full Fledged ISP
    2. Reseller/Franchise
    The option #1 requires large cash (INR 2.0 million) and capability of similar amount bang guarantee. the cost of ISP equipment and resources is extra.
    For option #2, you need to approach existing ISP in your area and find out the business norms to join them as Reseller/Franchise.
    Hope it help you.
    gdl.india at

  3. I would like to start a calling card business national or state level. With a local access number, would like to provide cheap calls to the customers.

    What are the licenses required and the fees corresponding to that.

    Hope to hear from you soon.

    Best regards

  4. We like to start internet service in Tiruppur Dist Tamilnadu state. How to get ISP Licence for B’ Class.

    1. Contact the DoT, Sanchar Bhavan, Delhi. I think they have consolidated everything as only one ISP License and it is expensive.

  5. dear sir
    we want to start isp at surat in procedure
    Thanking you

    Jitesh shah

Comments are closed.