Everything that you need to know about IPLC License in India

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IPLC License

An IPLC License allows an access service provider or an ISP License holder to provide IPLC (International Private Leased Circuits) between India and a foreign country. It is a nuanced telecom certificate. Therefore, the information about it is scarce or confidential. Thus, this article simplifies everything you need to know about this registration.

No industry has proved India’s inclination to go global more than the telecom industry. From allowing 100% per cent foreign FDI to making special incentives for Indian telecom companies, the DOT has proved time and time again that it wants India’s telecom sector to stand the test of time. “Resale of IPLC” is a business permit borne of that inclination.

It allows telecom service providers to obtain IPLC from an International Long Distance Operator to establish an internet circuit between India and a foreign country.

This article discusses all the facts about this license that one needs to know. Read More: Company Registration

General points of IPLC License

Let’s start with the basics. The following is the list of specifics that you must keep in mind while applying for the license:

  1. You can only provide IPLC service: With the IPLC license, you can only render services associated with it. If you try to extend beyond the scope of the certificate, the DOT will penalize you for violating the license’s rules.
  2. You can sell bandwidth: As an IPLC license holder, you can sell your bandwidth to other telecom service providers. Furthermore, these can be another IPLC licensee.
  3. Your landing station must be as per the ILD rules: The landing station to render your services must follow the ILD operator rules.
  4. Create your infrastructure: From multiplexing, de-multiplexing to billing, infrastructure consolidation will be your sole responsibility.

 Become eligible for the license

Resale of IPLC is an uber-niche service that is only suitable for a select few TSPs. Department of Telecommunication has thus established the following eligibility criteria for the license:

  1. You should have a company incorporated as per the Companies Act, 2013.
  2. Your company should have the technological resources to provide IPLC services.
  3. The Net worth of your company should be at least INR 2.5 Crore,
  4. And, if you want to involve foreign investment, you must do so per the FDI norms.

Note: You don’t have to worry too much about the last point as the DOT now allows 100 % foreign direct investment in the domain. Read More: CDSCO Registration

Documents you need to get the license.

No online method exists to apply for the IPLC license. You must resort to the standard process of offline application filing that involves submission of the following documents:

  1. Certified copy of the company incorporation certificate
  2. A copy of your company’s PAN card
  3. Copies of your company’s MOA and AOA
  4. An audited balance sheet of your company complete with a balance sheet and a profit & loss statement
  5. Foreign Direct Investment Details
  6. Information about the foreign involvement in running your operations
  7. Proofs of bank guarantees
  8. Receipt of entry fees

The procedure to obtain the IPLC license

To obtain the license, follow these steps:

  1. Furnish the documents in a DOT-prescribed format
  2. Fill the application form under the guidance of a telecom consultant
  3. Submit it along with the physical copies of your documents,
  4. After the assessment, you receive a letter of intent
  5. Pay the entry fee, and the bank guarantees.
  6. Sign the final IPLC license agreement with your telecom consultant as the witness

Conclusion

There are many other details about the permission to establish International Private Leased Circuits. However, knowing about them right now won’t be fruitful unless you are willing to apply for it. If you do, consult with the experts of Registrationwala. Read More: Cable Landing Station In India

What is an IPLC License? It is much more than meets the eye, and it is a critical telecom service license. You can know more about it with this blog.


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