The term VNO stands for Virtual Network Operator. It is a minimized version of the ISP license that is provided to an ISP provider for a very small area. Those who wish to become internet service operators for a limited area have to apply for a VNO license.
The validity of this license is of 10 years after which it can be renewed by the DoT. Besides this, it is more cost-effective compared to the ISP license. Let's learn about the different criteria that are required for applying for a VNO license.
7 steps to follow for availing a VNO license for setting up an ISP business plan in India
Here are the 7 steps that you must follow for applying for a VNO license. This license is very essential for setting up your ISP business plan in India. Let's take a look at them.
Step 1: Eligibility
Anybody who wants to know how to start an ISP business in India must first ensure that he or she is eligible to apply for a license. Besides this, the company needs to be listed under the Companies Act of 2013. One can also have a sole proprietorship/partnership firm but the chances of being approved are quite less.
Step 2: Selecting a VNO category
The person looking for an internet franchise in India needs to select the right category under which he/she wants to set up the business. In total, there are three categories namely- A stands for National Area, B stands for Telecom Circle/Metro Area, and C stands for Secondary Switching Area.
It is quite obvious that category A is more expensive than Category B or C.
Step 3: Cost and budget of the business
Usually, for small towns and cities, the ISP works under category C. A minimum of INR 21,000/- is to be spent for availing a VNO license under this category. However, for category A, the price can rise to 15.6 lac.
Step 4: Initializing the application process
The application for availing of a VNO license starts with filling up an application form. This application form is a mandatory part of setting up an ISP business plan in India. This form also includes a processing fee of ₹15000, while also submitting two copies of the application form. After you have chosen your VNO license category, you will need to fill out an application form.
Step 5: Reviewing the documents
After the documents have been submitted, they will be reviewed by the DoT within a matter of 60 days. This is one of the important steps on how to set up an ISP business plan in India. In case, there are any issues with the application, the DoT may delay the process.
If the process is over smoothly, the client is likely to receive a 'letter of intent' in their favor. They may now have to give their one-time fee, along with a signed agreement with the DoT (Department of Telecom), and attach it with the letter.
Note: The few given with the 'Letter of Intent' is non-refundable and should always be provided with all the documents that are required.
Step 6: Confirmation of the application
After the steps are carried out smoothly, the applicant will be provided with a VNO license for gaining an ISP franchise in India. The period of this license is of 10 years and will be informed to the applicant by the DoT for collecting it.
Step 7: Consulting an expert
To learn about how to set up an ISP business plan in India, taking the help of an expert is one of the wisest things that one can do. Since the process of VNO licensing is quite lengthy and technical, an expert can be of great help. He will also ensure that the application does not get rejected due to non-compliance or missing documents.
These were the steps that an applicant must know about before applying for their VNO license. Try contacting an expert in case of a query!
