VNO License: Cost-Efficient way to provide internet services in India

Servers, hardware, wires, a lot of power, a building, and ensuring better needs of subscribers – these are the words that go through your head when you’re planning to start an ISP center. You need to provide the right servers to manage your services. Your hardware should be robust to handle any power failure. As for wires, you need them to be sturdy, long and able to reach properly to your subscribers. And when you combine these requirements with the power, infrastructure and needs of the subscribers, your mind gets stressed. What is that stress is reduced to half? What if you opt for VNO License instead?

A unified license to start as a Virtual Network operator provides a much better option to provide internet connection in a better way. How?

1. Because you’re resupplying internet bandwidth you’ve bought from the telecoms service providers, you don’t have to use even your own servers for that.
2. Because you’re resupplying internet through a Virtual Network, it becomes far easy to manage.
3. Because you cannot set your own BGP, you’re flexibility depends on the one you’re getting internet from.

Thus, needless to say, but getting UL VNO License is the most cost efficient way to start internet services in India.

Let’s now dive into the following:

1. The process of getting UL VNO license
2. The VNO License cost that you’re required to pay
3. Who wins the battle between VNO License vs. ISP License

Related Content: Infrastructure Sharing License

The process of getting UL NO License

Unified License has a meaning. It means a license that unifies the services that you provide. In case of internet service provider via a virtual network operator, the unified license by DOT is defined as a license that allows the licensed to provide all the internet services as per the domain. Now that it’s almost clear, let’s discuss the steps:

1. First step is to incorporate an internet service providing company.
2. Then, you have to take steps to convene a board meeting to pass a board resolution
3. Then, you’re required to file the application of VNO license. Online way to apply is now an option. The application would also require you to upload the documents required.
4. Once the application is filed, it’s assessed. And when it’s assessed, it’s determined whether to send you a Letter of Intent or an objection letter.
5. Provided that you receive a letter of intent, you’d need to pay the bank guarantees as part of VNO License fee.
6. Once the above obligations are met, you sign the VNO License agreement with the Department of Telecommunication.

The VNO License cost that you’re required to pay

To acquire the VNO License in India, you need to take about four types of fees depending on your ISP categories. Those 4 types are as follows:

1. Entry Fee
2. Application Processing Fee
3. Financial Bank Guarantee

You file the application processing fee and entry fee at the time of application filing. The Financial Bank guarantee is filed after you receive the Letter of Intent.

Who wins the battle VNO License vs. ISP License

The unified license agreement for ISP has the following features:

1. High maintenance cost for the hardware.
2. High cost of license
3. Requirement of paying the Performance and financial bank guarantee after receiving letter of intent.
4. 25 years of validity.
5. Enhanced flexibility

The VNO license has the following features:

1. Less capital expenditure
2. Low cost maintenance
3. Low cost license
4. No requirement of performance bank guarantee
5. Low flexibility
6. 10 years of validity

However, we would still say that choosing VNO License is better. As you’re spending less, you’d only need to accept less duties. The low stress environment that VNO offers will ensure that you can grow safely.

Conclusion

VNO is the most cost-efficient way to provide internet services in India. We have covered all the reasons why. If you want to start one on your own, reach out to our DOT consultants. We will help you in a great way.