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How to set up an Internet Service Center in India

Starting an ISP has become a viable option for entrepreneurs courtesy of the incentives government has made for ISP License. However, one must approach starting this business with care as many regulatory, infrastructure, and legal requirements to consider.

An ISP is a business entity that renders internet services to customers. It uses several technologies for data transfer, ranging from dial-up, DSL, cable mode, high-speed interconnectors to wireless peripherals. Starting one isn’t easy because of these technical requirements and a few legal ones this blog discusses. 

What are the challenges associated with starting an ISP Centre in India?

The challenges that you’re likely to face when starting an internet service providing company are of three types:

  1. The Licensing: The ISP license is the regulatory requirement you need to fulfill to become legally empowered to provide internet services. However, there are other certifications that you must obtain before applying for this license.
  2. The technologies: To say that providing internet is a costly business is an understatement. From finding the right location to locating the right technologies, everything has the potential to set you back financially if you are not careful.
  3. Infrastructural requirement: Only a legal infrastructure incorporated according to the rules of the government of India can become an ISP.

Therefore, to successfully set up an ISP center in India, you must meet the above challenges. 

Facing the infrastructural challenge

To deal with the challenge posed by the infrastructural requirement is perhaps the simplest one to overcome. All you need to do is incorporate your company. The process is as follows:

  1. Firstly, select a suitable name for your company. 
  2. Secondly, reserve that name. 
  3. Draft a Memorandum of Association and state the objective of your company.
  4. Create Articles of Association and state the rules and regulations of your company. 
  5. Get the Director Signature Certificate and Director Identification Number for the directors. 
  6. File the online SPICE application form for company registration 
  7. Get the certificate of registration. 

For instance, you will overcome the infrastructural challenge with the certificate of incorporation in your hand.

Also Read: Importer License

Facing the technological challenge

To face the technological challenges, you have to look at it through two aspects:

  1. The technological aspect, and 
  2. The monetary aspect 

The technological aspect 

When looking at the technological aspect of this challenge, you must make the following decisions:

  1. The types of services you want to provide: The more services you provide, the more technologies you will need to by.,
  2. Your service area in which you want to facilitate those services: the more expansive your service area, the costlier the technology.
  3. And the quality of networking devices you want to implement: the higher quality of products you want to implement, the more technologically endowed you must be.

The Monetary Aspect

Dealing with the monetary aspect requires choosing between the following ISP license categories:

  1. ISP category A: If you wish to provide your internet services all over India, you can choose ISP license category A. The ISP license cost is high, and the technical requirements are higher. However, it allows you to stand with the telecom industry giants. 
  2. ISP category B: If you choose wisely, select ISP license category B. It allows you to establish your Internet service company in a metropolitan region or a state. 
  3. ISP License category C: If providing ISP services in rural regions or small towns is what you aspire to do, then ISP license category C is for you. It’s the most cost-efficient license – allowing you to run the service center using the minimal infrastructure.

Once you have looked at the issue with both aspects, you become ready to face the final challenge.

Facing the Final Challenge: Getting the ISP License

Consequently, The final challenge is the licensing challenge. Here, you will have to contend with the departmental roadblocks, telecom officials, and bank guarantees. 

To face this challenge, you need to get in touch with an ISP license consultant and undertake the following steps:

  1. Firstly, Furnish the requisite documents:
    1. Certificate of incorporation
    2. Memorandum of Association
    3. Articles of Association
    4. List of directors and shareholders of the company 
    5. Net worth certificate of the company 
    6. Detail of the services that you want to provide.
  2. Secondly, apply for the ISP license online through the SARALSANCHAR portal. 
  3. DOT officials will assess the application. If they find it satisfactory, you will get the Letter of Intent. 
  4. Fulfill the Bank guarantee requirements as per the details in the letter of intent. Pay a one-time entry fee. 
  5. As a result, DOT will send you the final ISP license agreement within a month of fulfilling the above requirements.

Also Read: RNI Registration

Conclusion

Therefore, The road to starting your ISP company has many technical, infrastructural, and licensing challenges. Understand each of them carefully. Take help when you need it and persevere through them to start your internet service providing center in India.

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