ISP Licence — Internet Service Authorisation from DoT
To sell internet access in India you need an authorisation from the Department of Telecommunications. Since 24 June 2026 new applications go under the Telecommunications Act, 2023 and the Principal Telecommunication Services Rules, 2026, replacing the old Unified Licence ISP route. We prepare your company, documents and portal application, then keep the quarterly fee filings on track.
What it is
An ISP licence is the government permission to provide internet access to paying customers, over fibre, leased lines or building Wi-Fi. Under the new law its correct name is Internet Service Authorisation.
The Telecommunications Act, 2023 says no one may provide a telecommunication service without an authorisation. The Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026 (G.S.R. 513(E), published 24 June 2026) set the terms for internet service and four other main services. Applications are filed on the Department of Telecommunications’ Telecom e-Services authorisation portal, which has taken over from the older Saral Sanchar portal for new applications.
Until June 2026, ISPs took a Unified Licence with an ISP authorisation in Category A (all India), Category B (one telecom circle or metro) or Category C (one secondary switching area). Those licences stay valid. Holders continue under their existing agreement until they choose to migrate under section 3(6) of the Act.
Who it applies to
You run a local broadband business
Picture a cable operator in NIT Faridabad that already runs fibre to a few thousand homes as a franchise partner of a bigger ISP. To bill those customers in its own name, it needs its own authorisation.
You own the network (NSO)
You build and run your own network: routers, fibre, upstream bandwidth. The NSO option suits operators who own infrastructure in a circle or across India.
You resell someone else’s network (VNO)
You resell internet using another authorised operator’s network under your own brand. The VNO option has lower guarantees because you do not run the core network.
Why it matters
Stay inside section 3 of the Act
Providing internet service to the public without an authorisation breaches section 3 of the Telecommunications Act, 2023. Upstream providers also ask for your authorisation before they sell you bandwidth for resale.
Bid for enterprise and government work
Corporate and government buyers usually ask for the DoT authorisation copy in tender papers. Without it, you bid only as someone else’s partner.
Price your plans around the fee
The authorisation fee is 8% of adjusted gross revenue. Build it into your tariffs from day one.
Documents required
About the company
- Certificate of incorporation, MOA and AOA, with internet or telecom services in the objects
- PAN, GST registration and registered office proof
- Shareholding pattern and list of directors
- Proof of paid-up equity: ₹10 lakh for a national area, ₹1 lakh for a circle or metro
Authorisations and people
- Board resolution naming the authorised signatory
- Valid digital signature certificate of the signatory
- Director identity and address proofs
- Details of any foreign investment in the company
Fees and guarantees
- Application processing fee of ₹10,000
- Entry fee, paid after the Letter of Intent
- Initial guarantee from a scheduled bank in the DoT format
- Network plan and equipment details (NSO), or the host operator’s details (VNO)
Entry fee and guarantee at a glance
| Option | Service area | Processing fee | Entry fee | Initial guarantee | Minimum paid-up equity |
|---|---|---|---|---|---|
| NSO | National | ₹10,000 | ₹10 lakh | ₹4 lakh | ₹10 lakh |
| NSO | Circle / metro | ₹10,000 | ₹50,000 | ₹20,000 | ₹1 lakh |
| VNO | National | ₹10,000 | ₹10 lakh | ₹1 lakh | ₹10 lakh |
| VNO | Circle / metro | ₹10,000 | ₹50,000 | ₹10,000 | ₹1 lakh |
No minimum net worth is prescribed for internet service. These figures come from Schedules A and C of the 2026 Rules. One point people miss: a circle authorisation covers one circle, so selling in Haryana and Delhi means two entry fees.
How it works
Set up or fix the company
We check the objects clause and paid-up equity. If you do not have a company yet, we form a private limited company; if equity is short, we raise it first.
Choose NSO or VNO, and the area
We match your plan to an option and service area and confirm the entry fee, guarantee and fee floor.
File on the Telecom e-Services portal
We register the company on the portal, upload documents with the signatory’s DSC and pay the ₹10,000 processing fee.
Answer queries and receive the Letter of Intent
DoT examines the file and may raise queries; we draft the replies. Once satisfied, it issues a Letter of Intent listing what to deposit.
Pay the entry fee and submit the guarantee
You pay the entry fee and furnish the bank guarantee. DoT then grants the authorisation.
Start the compliance calendar
From the first quarter we track AGR, the self-assessed authorisation fee and the annual audited statement. Network security and lawful-interception set-ups are handled by your network engineers or a telecom technical consultant.
Timelines
Quarterly authorisation fee
For the first three quarters, pay within 15 days of the end of the quarter. The fourth quarter is paid in advance by 25 March and reconciled by 15 April.
Annual audited statement
An audited statement of revenue and authorisation fee for the financial year is due by 30 June.
Validity
The authorisation runs for up to 20 years and can be renewed. From the second year, the yearly fee is the higher of 8% of AGR or 30% of the entry fee.
What happens if you skip it
Unauthorised service
Running an internet business without an authorisation breaches section 3 of the 2023 Act and invites action by DoT, including stopping the service. Bandwidth suppliers can cut off a reseller who cannot show one.
Interest on late fees
Under the 2021 telecom reforms, late licence fee carries interest at SBI’s MCLR plus 2%, compounded annually.
Disputed deductions
Here is the catch: the Controller of Communication Accounts verifies every deduction you claim from gross revenue. No invoice or payment proof, no deduction, and the fee and interest go up.
Frequently asked questions
Is the Unified Licence ISP route still open in 2026?
No, new applicants now take an Internet Service Authorisation under the Principal Telecommunication Services Rules, 2026, published on 24 June 2026. Existing Unified Licence holders with ISP Category A, B or C authorisations keep their licences. They continue under their current agreement until they choose to migrate under section 3(6) of the Telecommunications Act, 2023. Nothing lapses overnight, and we can compare both sets of terms before you decide.
What does an internet service authorisation cost in government fees?
Every application carries a processing fee of ₹10,000. The entry fee is ₹10 lakh for a national area and ₹50,000 for each circle or metro, for both NSO and VNO. The initial bank guarantee ranges from ₹10,000 (VNO, circle) to ₹4 lakh (NSO, national). After that, the yearly authorisation fee is 8% of adjusted gross revenue. We confirm the exact total for your chosen option before you apply.
Can a proprietorship or partnership firm get an ISP licence?
No, the 2026 Rules prescribe minimum paid-up equity of ₹10 lakh for a national area and ₹1 lakh for a circle, which only a company can show. In practice that means a company registered in India. If you run broadband today as a proprietor, we can incorporate a private limited company, move the business into it and then file, without interrupting your customers.
What is the difference between NSO and VNO?
An NSO, or network service operator, owns and runs its own network, while a VNO resells service on another operator’s network. Both pay the same ₹10,000 processing fee and the same entry fee for a given area. The VNO’s initial guarantee is lower: ₹1 lakh against ₹4 lakh at the national level. In practice, a small operator in Ballabgarh might start as a VNO and switch to NSO once its own fibre is in the ground. We can plan that path with you.
What is AGR and how is the 8% fee worked out?
AGR, or adjusted gross revenue, is your gross revenue from the authorised service minus the deductions the rules allow, such as charges paid to other operators. The authorisation fee is 8% of AGR, and from the second year it cannot be less than 30% of your entry fee. Since the 2021 reforms, non-telecom revenue is excluded from AGR. We prepare the quarterly AGR working so that the fee you self-assess holds up on verification.
When is the authorisation fee paid?
The fee is paid quarterly on a self-assessment basis, within 15 days of the end of each of the first three quarters. For the last quarter you pay in advance by 25 March and reconcile by 15 April. An audited annual statement of revenue and fee is due by 30 June. We prepare the working ahead of each date, so your accounts team only approves and pays.
How long is an ISP authorisation valid?
An authorisation under the 2026 Rules is granted for a maximum of 20 years and can be renewed. The fee floor of 30% of the entry fee applies to renewals and migrations too. Older Unified Licences run for the period stated in each agreement. We note your expiry date in our compliance calendar and start the renewal paperwork well before it, so service never has to pause.
Does Taxhint set up the network or the security systems?
No, we handle the legal and financial side: company structure, documents, the portal application, DoT queries, fee payments and AGR filings. Network design, equipment and security or lawful-interception systems are handled by your engineers or a telecom technical consultant. We work with them so the application papers match the network actually built, which saves rounds of queries.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Government amounts are in the entry fee table above, plus the yearly authorisation fee of 8% of AGR. Your company will also need GST registration, because internet service is a taxable supply.
Ready to begin?
Tell us where you plan to sell internet and whether you own the network, and we will map the authorisation, fees and filings for you.