NLD/ILD Licence: Long Distance Service Authorisation from DoT
An NLD/ILD licence lets a company carry long distance telecom traffic across India and abroad. Under the Principal Telecommunication Services Rules, 2026 (24 June 2026), the old NLD and ILD licences are replaced for new applicants by one Long Distance Service authorisation. We prepare the company, documents and DoT portal filing, then keep the fee calendar on track.
What it is
A National Long Distance (NLD) service carries calls and data between telecom circles. An International Long Distance (ILD) service carries them between India and other countries. Operators who ran these services held an NLD or ILD licence under the Unified Licence framework.
The Telecommunications Act, 2023 says no one may provide a telecommunication service without an authorisation. The Principal Telecommunication Services Rules, 2026 reduce the old list of service categories to five. One of them is the Long Distance Service authorisation, which merges national and international long distance. It covers national and international long distance, bearer traffic, leased circuits and calling cards.
Applications go through a portal-based process that ends in a Letter of Intent from the Department of Telecommunications (DoT). Existing Unified Licence holders are not switched over automatically. They continue under their current agreement until they choose to migrate under section 3(6) of the Act.
Who it applies to
You own long haul capacity (NSO)
Picture a company laying fibre along the Delhi–Faridabad–Agra corridor to sell capacity to ISPs and data centres. It owns the backbone, so the NSO route fits, with the higher guarantee and net worth.
You resell long distance capacity (VNO)
You sell bearer capacity, leased circuits or calling cards on someone else’s network. The VNO route has lower fees and net worth. Your international traffic connects through the parent NSO.
You are an existing licence holder
If you already hold a Unified Licence with NLD or ILD, nothing lapses overnight. In practice, the question is timing: we compare your current terms with the 2026 terms so you can decide when, or whether, to migrate.
Why it matters
Stay on the right side of section 3
Providing a telecommunication service without an authorisation breaches the Telecommunications Act, 2023. Carriers also ask to see yours before they sign capacity deals.
Apply once for both reaches
A carrier wanting both national and international reach once looked at two licences. Now one NLD/ILD licence application and one fee line cover both.
Price your capacity after the fee
The authorisation fee is 8% of adjusted gross revenue, with a floor from the second year. Build it into your rate card from day one.
Documents required
About the company
- Certificate of incorporation, MOA and AOA with long distance or telecom services in the objects
- PAN, GST registration and registered office proof
- Shareholding pattern, list of directors and details of any foreign investment
- Proof of paid-up equity and net worth (see the table below)
Authorisations and people
- Board resolution naming the authorised signatory
- Valid digital signature certificate of the signatory
- Director identity and address proofs
- Audited financials or a net worth certificate from a practising chartered accountant
Fees and network details
- Application processing fee of ₹10,000
- Entry fee and bank guarantee, due after the Letter of Intent
- Network plan, route and equipment details (NSO)
- Parent NSO agreement details (VNO)
Entry fee and guarantee at a glance
| Option | Processing fee | Entry fee | Initial guarantee | Minimum paid-up equity | Minimum net worth |
|---|---|---|---|---|---|
| NSO (national) | ₹10,000 | ₹1 crore | ₹1 crore | ₹2.5 crore | ₹2.5 crore |
| VNO (national) | ₹10,000 | ₹25 lakh | ₹50 lakh | ₹1 crore | ₹1 crore |
Only companies are eligible, and a One Person Company is excluded: a bandwidth trader running as a proprietorship has to incorporate first. Foreign investment must follow the current FDI policy. The service area is national, so there is no circle option as there is for internet service.
How it works
Test your company against the net worth rules
We read your objects clause, paid-up equity and net worth against the table above. If equity is short, we plan an increase in authorised capital and a fresh allotment first.
Choose NSO or VNO
We match your network plan to an option and confirm the entry fee, guarantee and yearly fee floor. A VNO needs the parent NSO’s details ready.
File on the DoT portal
We register the company on the portal, upload documents with the signatory’s DSC and pay the ₹10,000 processing fee.
Reply to DoT queries
DoT examines the file and may raise queries on shareholding, net worth or network details. We draft the replies with your team.
Pay the entry fee and furnish the guarantee
After the Letter of Intent you pay the entry fee and submit the bank guarantee. DoT then grants the authorisation.
Start the compliance calendar
From the first quarter we track AGR and the self-assessed fee. Lawful interception, security and network build are done by your engineers or a telecom technical consultant.
Timelines
Quarterly authorisation fee
Pay within 15 days of the end of each of the first three quarters. The fourth quarter is paid in advance by 25 March and reconciled by 15 April.
Annual audited statement
An audited statement of revenue and fee for the financial year is due by 30 June.
Validity
The authorisation runs for a maximum of 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
Carrying long distance traffic without an authorisation breaches section 3 of the 2023 Act. DoT can act against the service, and carriers can refuse to give you capacity.
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. Without invoices and payment proof, the deduction goes and the fee and interest rise.
Frequently asked questions
Is the NLD/ILD licence still issued as two separate licences in 2026?
No, for new applicants the two are merged into one Long Distance Service authorisation under the Principal Telecommunication Services Rules, 2026, published on 24 June 2026. Existing Unified Licence holders keep their NLD or ILD authorisations and continue under their agreement until they choose to migrate under section 3(6). We can compare both sets of terms before you decide.
What are the government fees for a long distance authorisation?
Every application carries a processing fee of ₹10,000. For an NSO the entry fee is ₹1 crore and the initial guarantee is ₹1 crore. For a VNO the entry fee is ₹25 lakh and the guarantee is ₹50 lakh. After that, the authorisation fee is 8% of adjusted gross revenue each year. We confirm the exact total for your option before you apply.
What net worth and paid-up equity do I need?
An NSO needs minimum paid-up equity of ₹2.5 crore and net worth of ₹2.5 crore. A VNO needs ₹1 crore of each. Only a company qualifies, and a One Person Company is excluded. If your equity falls short, we plan the capital increase and allotment first.
What is the difference between NSO and VNO for long distance?
An NSO owns and runs the long distance network, while a VNO resells capacity on another operator’s network. International traffic of a VNO connects through its parent NSO. Both pay the same ₹10,000 processing fee. The NSO pays a higher entry fee, guarantee and net worth because it carries network responsibility. A reseller can start as a VNO.
Can a foreign company or foreign investor hold this authorisation?
Foreign investment is allowed only as far as the current FDI policy permits. The Rules also require network data and logs to be stored in India, with no foreign copies. We map your shareholding against these conditions before filing. If a stake needs approval or restructuring, we flag it early.
When is the authorisation fee paid?
The fee is paid quarterly on a self-assessment basis, within 15 days 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 is due by 30 June. We prepare the AGR working before each date, so your accounts team only approves and pays.
How long is the authorisation valid?
A Long Distance Service authorisation is granted for a maximum of 20 years and can be renewed. From the second year the fee cannot fall below 30% of the entry fee, even if revenue is low. We note your expiry in our compliance calendar and start renewal paperwork well ahead, so service never has to pause.
Does Taxhint build the network or the interception 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, lawful interception and security systems are done by your engineers or a telecom technical consultant. We keep the papers aligned with what is built.
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 table above, plus the yearly authorisation fee of 8% of AGR. Your company will also need GST registration, because long distance capacity is a taxable supply.
Ready to begin?
Tell us whether you own the long haul network or resell it, and we will map the authorisation, fees and filings for you.