1. Internet services were launched in India on 15th August, 1995 by Videsh Sanchar Nigam Limited.  In Nov, 1998, the Government opened up the sector for providing Internet services by private operators. A liberal licensing regime was put in place with a view to increase Internet penetration across the country. The New Telecom Policy envisaged opening up of internet Telephony where upon Government decided to permit ISPs to process and carry voice signals (Restricted Internet Telephony) with effect from 1^st April 2002.
2. In year 2007, the Government decided to issue a single licence under ISP guidelines dated 24.08.07 which permits restricted Internet Telephony for the ISPs.
3. Prior to ISP guidelines dated 24-08-07
4. Subsequent to ISP Guidelines dated 24.08.07

1. All new licenses are being issued under guidelines dated 24.08.07 in category ‘A’ and category ‘B’ only and no new license for category ‘C’. Category ‘B, service areas are modified as 23 service areas as defined in these guidelines. How to apply for an ISP licence. The applicant company is required to pay Rs. 15,000/- as processing fee along with the application for obtaining ISP License. The application shall be addressed to ADG(LR-1) O/o DODGED), Room No. 1021, Sanchar Bhawan, Ashoka Road, New delhi-110117. Entry fee has also been introduced under these guidelines for ISP licenses. (Details as below). License fee of 6% of AGR (Gross revenue other than pure internet services and roaming revenue actually passed on to other Telecom Service Providers etc.), as defined in amendment dated 03.03.2006, with minimum license fee of Rs. 50000 and Rs 10000 per annum, is applicable for category ‘A’ & ‘B’ ISPs respectively.

2. Existing ISPs, granted license prior to 24-08-07, are permitted to migrate to the license based on the guidelines dated 24.08.2007. Category ‘C’ ISPs are encouraged to migrate to either category ‘A’ or ‘B’. Entry fee is not applicable to ISPs granted license prior to 24.08.2007, however PBG & FBG as per new license are to be deposited.

3. Initially the validity period of ISP License was 15 years and entry fee was 20 lakhs and 10 lakhs for category ‘A’ & ‘B’ respectively but the guidelines dated 24.08.2007 have been amended w.e.f. 25.01.10 and validity period of new  ISP license (granted subsequent to 25.01.10) is  20 years with revised entry fee of Rs. 30 Laths and 15 Lakhs for category ‘A’ & ‘B’ respectively.

4. Following are the entry Fees and Bank Guarantees applicable for Licences being issued at present:  

Category	Entry Fee Rs.	PBG Rs.	FBG Rs.
A (All India)	30 Lakh	2 Corers	10 Lakh
B ( a service Area out of 23 areas)	15 Lakh	20 Lakh	1 Lakh

5. Licensee having Net worth of Rs. 100 Crore is eligible to take permission to provide Internet Protocol Television (IPTV) service. 

5. License terms and conditions are amended from time to time which are also available on this website.

6. Broadband Policy was announced in 2004.  Directions were provided for the growth of Broadband. A minimum speed of 256 Kbps and always on connection was defined as Broadband.

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        For more details, kindly click below:

1	Advisory in respect of security related concern
2	Check List of Documents for various requests pertaining to ISP License
3	Pertaining  to ISP License granted subsequent to guidelines dated 24.08.07.
4	Pertaining to ISP License granted prior to issue of guidelines dated 24.08.07
5	Related to Security Clearance for procuring telecom equipments/ software
6	List of ISP Licensees as on 31.12.2011
7	Format for Broadband and Internet Subscriber reports from ISPs (w.e.f. 11.08 2010) Format
8	Broadband policy, 2004

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