Resale of IPLC License was introduced by the Department of Telecommunication in 2008 to promote communication and affordability in the International Private Leased Circuits (Segment). This article is a complete guide for obtaining this certification.
A Reseller of IPLC is a telecom service provider that establishes an end to end International Private leased Line between India and a foreign country. To provide this inter connectivity, the reseller buys the leased lines from International Long Distance Operators who have obtained ILD license under Section 4 of the India Telegraph Act. Furthermore, a reseller has the permission to enter into an agreement with National Long Distance Operators and Access Service providers to facilitate end-users with the IPLC service.
IPLC License Eligibility: Eligibility Criteria to provide International Private Leased lines
The department of Telecommunication has made pretty clear with the following eligibility criteria that only those with the technical, infrastructural and regulatory abilities to provide the IPLD service shall have the permission to apply for the IPLC License.
Thus, the IPLC License eligibility criteria are as follows:
- The applicant must be an Indian Company: Only applicants that are established business entities as per the Companies Act 1956 have the permission to apply for the IPLC license.
- The applicant must meet the net worth requirement: Owing to the cost-intensive nature of the service, the applicant company must have a minimum net worth of INR 2.5 Crore, same as its minimum paid-up capital requirement.
- Foreign Equity should not exceed the limit: Foreign equity into the applicant company should not exceed 74%. In case it does, the applicant must also get the approval from Reserve Bank of India under the Foreign Exchange Management Act.
- The Chief Officer of the company should be Indian: The applicant company’s Chief Technical Officer, charged with overseeing the technical operations must be an Indian, and so is the Chief Security Officer.
- Key Management Personnel of the company should be Indian: It’s imperative that the key management personnel of the applicant company are from India. From Chairman, Managing Director, to the chief financial officer, Chief Technical Officer and Chief Marketing Officer, all should reside in India and must have Indian citizenship. Read Other Content: Insurance Marketing Firm
Procedure to obtain the License to provide International Private Leased Cables
The IPC License process to procure the authorization to render IPLC services entails the following steps:
The applicant must first furnish the documents that are:
- Certificate of Incorporation of the Company
- Memorandum of Association of the Company
- Object Clause of the MOA of the company stating that the applicant company’s purpose is to provide IPLC service.
- List of Directors and Shareholders of the applicant company.
- Net Worth Certificate of the company issued by either the company secretary or the Company’s Statutory Auditor.
- Copy of the Annual report of the company
- Detailed business plan and funding arrangements for financing the project.
- Copy of the resolution from the directors to file the application for IPLC license.
- Conditional Documents: These are the documents the applicant must submit only if the applicant company has access to foreign equity:
- Foreign Equity Break-up of the company.
- Certified copy of government approval to the terms of foreign collaboration.
- Receipt o the IPLC license fees
The applicant must file an offline application form and submit it to its regional branch of the Department of Telecommunication in India.
Once it’s turn for the applicant’s application to be assessed, the DOT forwards it to the IPLC officials. They scrutinize the application and issue a letter of intent.
Letter of Intent:
This document gives the applicant company options in regards to the payment of the financial bank guarantee. The company can either submit a letter promising to fulfil the bank guarantee requirements within a year of signing the license agreement, or it can make the due deposits and submit the bank guarantee documents to the Department of Telecommunication.
However, the applicant must submit the IPLC license fees in the form of an Entry fee within the time mentioned in the Letter of Intent. It’s only then the applicant can sign the final IPLC License agreement. Read More: TEC Certificate
Signing the IPLC License Agreement
After submitting a response to the Letter of Intent, the DOT will send a signed ISP license agreement. The applicant has to then sign the document, make a copy and send it to the Department of Telecommunication.
The time it takes to obtain the IPLC license
When it comes to the time it takes to procure the IPLC license, it’s subject to:
- Correctness of the application form,
- The thoroughness of the documents, and
- Adherence to the terms of the IPLC license
Generally, after application filing, procuring the license can take from two to 5 months. The process is straightforward. However, it has intricacies that are only revealed once the application reaches the DOT.
Resale of IPLC license empowers the licensee to provide a nuances telecom service of establishing connectivity via private leased cables between India and foreign countries. Read More: Newspaper Registration
Therefore, equally nuanced is the process and the application procedure to acquire this certificate. Which is why, one must consult with a telecom expert to acquire this license. Contact us for further information.
“Resale of IPLC” License allows the licensee to establish International Private Leased Lines between India and other countries. Read this blog to know more.