2021 Amendments to ISP License agreement

ISP License agreement has gone through many changes over the years. Recently, the same thing happened on March 2021. In its notification of amendments, the Department of Telecommunication announced changes made to the agreement for the license holders who�ve obtained their authorization in 2007.

If you�re an Internet Service Provider in India, you got to understand the terms and conditions under which the DOT is allowing you to operate. Many changes are done to the ISP License online registration methods, terms and conditions. Abiding with those changes, regardless of when you�ve obtained the license, is the key to continuing to do business.

ISP License agreement

In march 2021, the Department of Telecommunication announced certain amendments to the ISP License agreement of those license holders who�ve obtained their ISP Licenses in 2007. These changes pertain to the following points:

  • Definitions of Gross revenue
  • Adjusted Gross Revenue
  • Rate of License fees
  • Requirement to provide services
  • Format of statement of revenue and license fee

In this article, we are going explain to you these amendments. If you experience confusion at any point, feel free to reach out to our ISP License consultant.

Amendment 1: Schedule of Payment of Annual License fee and Other Dues

Following is the change made to the condition related to the schedule of payment of annual license fee and other dues

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The delay of payment of any license fee or other fee payable under the ISP License requirements, will invite an interest rate of 4% (before amendment, it was 2 percent) if the delay is more than one year. This interest will be a compound interest calculated on a monthly basis.

Amendment 2: Requirement to provide the service

Following are the alterations in terms and conditions pertaining to the requirement of providing the services:

As an ISP License holder, you have the right to enter into a commercial agreement with other unified license holders of category A, B and C for the purpose of providing roaming facilities. However, that doesn�t mean that you�ll acquire the right to get the customers for those roaming services if you�ve not mentioned in your ISP license agreement that you are providing the aforementioned services.

Sharing of active infrastructure is possible via mutual agreements. However, as per those agreements, DOT only allows the sharing of following infrastructure:

  • Wi-Fi Router
  • Access Point
  • Backhaul

Amendment 3: Quantum of License fee and Schedule of payment

Following is the amendment made to the quantum of license fee and the schedule of payment

It�s the duty of ISP License holder to pay an annual license fee which is 8% of the annual AGR (Adjusted Gross Revenue) per service area. Furthermore, the licensor � Department of Telecommunication � holds the right to alter the percentage at any time.

Amendment 4: Definition of Adjusted Gross Revenue

Following is the change made to the definition of Adjusted Gross Revenue

Following revenues are included in the Gross revenue:

  • Revenue from internet service
  • Revenue from internet contents
  • Revenue from internet telephony service
  • Revenue from activation charges
  • Revenue from rent, sale or lease of bandwidth links
  • Revenue from R&G cases
  • Revenue from turnkey projects
  • Revenue from IPTV services
  • Revenue from late fees
  • Revenue from sale proceeds of terminal equipments
  • Revenue from account of interest
  • Revenue from dividend
  • Revenue from value added services
  • Revenue from supplementary services
  • Revenue from interconnection charges
  • Revenue from roaming charges
  • Revenue from permissible sharing of infrastructure
  • Revenue from other miscellaneous revenue

When calculating the Adjusted Gross revenue, revenue generated from the following will not be taken into account:

  • Service tax on provision of service
  • Sales tax actually paid to the government
  • Roaming revenue passed on to another entitled telecom service provider.

Amendment 5: Changes in ISP License agreement format of statement of revenue and license fee.

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As per this amendment, the present license holders have to fill the ISP license agreement format for statement of revenue and license fee which has been revamped to make room for other amendments mentioned in this article.

Conclusion

How to get ISP License in India?An answer to this question is just the beginning of your struggle to provide internet services.

Our ISP License consultant provide you the right answer to it in addition to providing you a lot more assistance. For further details pertaining to these amendments, reach out to our experts.

2021 Amendments to ISP License agreement are changes that have been made for the ISP license holders of 2007. If you�re such an ISP, read this article thoroughly for more info.

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