Other Service Providers or Telecom Service Providers are tech-oriented businesses that rely on good internet bandwidth. Thus, to provide them with such, there are Infrastructure Providers. To become an Infrastructure Provider, one has to acquire the IP1 License.
In this article, we are going to tell you how you can get the IP1 License.
Moreover, we will also tell you the guidelines to keep in mind when applying for the IP1 License.
What is IP1 License?
IP1 License is the authorization to provide internet bandwidth to tech enabled service providers like OSPs and telecom companies. The Department of Telecommunication issues this license to companies on the following conditions:
- The applicant must be a company.
- The applicant has to explain in the MOA and AOA with the term Infrastructure provider mentioned in it.
What is the process to get the IP1 License?
The process to become an Infrastructure Provider involves the following steps:
- Become eligible to apply for the IP1 License: You cannot file the application for IP1 License if you have not registered a company. Thus. Your first step is to incorporate a company.
- Furnish and Certify the required documents: Following are the required documents for IP1 License that you need to furnish and get certified:
- Certificate of incorporation of the company you incorporated to become eligible to apply for the license.
- Memorandum of Association with the term “Infrastructure Providing Company” mentioned in the object of the company.
- Articles of Association specifying the rules and regulations your Infrastructure Providing Company swears to follow throughout the course of its business.
- Details of the Chartered Accountant who is going to certify the above documents and file the application on your behalf.
- Challan fee of the required fee.
- File the application for IP1 License: As of yet, there is no online process to get IP1 License, you need to apply for it offline via downloading the application form from the website, filling it, attaching the required documents to it, and submit it at a Department of Telecommunication branch near you.
- Get assessed and get licensed: Once the Department receives your application, they will scrutinize it thoroughly. If they encounter any discrepancy, they will respond by sending you the notification of the same. It would contain:
- the information about the discrepancy
- The steps you have to take to resolve it
- And, the deadline within which you have to take them.
If you follow through with these instructions, you’ll be issued an IP1 License.
Note: The reason we are talking about discrepancy in general terms it’s quite common for the DOT to object to your application. What matters is you take the steps to resolve those issues in time.
Guidelines for Registration of Infrastructure Provider Category
The guidelines that Department of Telecommunication issues are in constant flux. The ones below for Infrastructure as a service are the ones issued back in 2017:
- Only an Indian Company can apply for IP1 License.
- While an Indian company with up to 49% foreign direct investment (FDI) can directly apply for IP1 License, if the FDI exceeds 49%, than that company has to get the approval of FIPB approval prior to applying for the license.
- Both Direct and Indirect foreign in that Indian company shall be taken into account.
- The holding companies/Indian Companies/Investing Companies from India have to abide by the provisions of extant FDI policy to apply for the IP1 License.
- The application should be submitted strictly in the prescribed format.
- The Right of Way: the way by which the Infrastructure Provider decides to who and how much internet bandwidth is to be provider, has to be decided by the Infrastructure Provider itself.
- One is only allowed to change the name of the Infrastructure Providing Company as per the provisions of the Companies act.
- After filing the application, the company will know whether it’s accepted or rejected within the next 15 days.
- IP1 License will be provided on non-exclusive basis in a fair and decisive manner.
- Before providing the infrastructure to licensees of telecom services, the Infrastructure Provider has to enter in a mutually agreeable contract with them.
- Once the IP1 License is granted, the Infrastructure Provider must provide the infrastructure in a non-discriminatory manner.
- To get the IP1 license, the company has to pay a non-refundable fee of INR 5,000/- at the time of application filing.
Due to the increase in demand of telecom resources, an IP1 License is a hot commodity right now. However, getting the said license is difficult, for the legal steps can be quite de-motivational. But don’t you worry, with our Chartered accountants and dot consultants can get you the dot osp license in a timely manner.