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The New
Telecom Policy 1999 envisages grant of license on
non-exclusive basis to Very Small Aperture Terminal (VSAT)
service providers for a period of 20 years extendable one
time by 10 years. Accordingly, licenses are issued to
applicants
to
establish, install, operate and maintain VSAT Closed Users
Group (CUG) Domestic Data Network service via INSAT
Satellite System on non- exclusive basis within
territorial boundary of
India.
There
are two types of CUG VSAT licenses : (i) Commercial
CUG VSAT license and (ii) Captive CUG VSAT license.
The commercial VSAT service provider can offer the service
on commercial basis to the subscribers by setting up a
number of Closed User Groups (CUGs) whereas in the
captive VSAT service only one CUG can be set up for the
captive use of the licensee.
The
applicant must be an Indian company, registered under the
Indian Companies Act'1956.
The
Licensee shall ensure that the total foreign equity in
the LICENSEE Company does not, at any time during the
entire LICENCE PERIOD, exceed prescribed cap for FDI of
the total paid up equity.
Investment in the equity of the applicant company by an
NRI/OCB/International Funding Agencies is to be counted
towards its foreign equity.
The
Salient features of the CUG VSAT licenses are :
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The scope of the service
is to provide data connectivity between various sites
scattered within territorial boundary of India via INSAT Satellite System using Very Small Aperture Terminals
(VSATs). However, these sites should form part of a Closed
User Group (CUG).
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The intent of this LICENCE is not to grant long distance
carrier rights.
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PSTN connectivity is not permitted.
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The VSAT network shall comply with
Technical parameters as specified in TEC Interface
Requirements No. IR/VST-08/02.DEC.2003 and its
subsequent issues / amendments.
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