VNO Licence in India — Virtual Network Operator Authorisation
A VNO licence lets an Indian company sell telecom or internet services to customers without building its own network. It rides on the network of a parent operator. Since June 2026 the Department of Telecommunications (DoT) grants it as an authorisation under the Telecommunications Act, 2023. We prepare the application, coordinate with your parent operator and file it on the DoT portal.
What it is
A Virtual Network Operator (VNO) sells mobile, broadband, leased-line or long-distance services under its own brand, using the towers, fibre and switches of a Network Service Operator (NSO). The NSO is called the parent. You own the customer, the price list and the brand. The parent owns the pipes.
The old Unified Licence (VNO) came from the Indian Telegraph Act, 1885. The Telecommunications Act, 2023 replaced licences with authorisations, and the Principal Telecommunication Services Rules, 2026 (published 24 June 2026) now govern them. Fifteen old service categories are folded into five authorisations. So when people say “VNO licence” today, they mean a VNO authorisation applied for on the DoT e-services portal.
Who it applies to
You want to sell mobile or data under your own brand
Say a Faridabad start-up wants its own SIM, plans and app, but has no spectrum or towers. It takes an Access Service VNO authorisation for the Haryana circle.
You run an internet or broadband business
A local broadband provider that buys bandwidth from a parent takes an Internet Service VNO authorisation, either national or for one circle.
You are an existing UL-VNO holder
Existing holders are not moved automatically. You continue under your current agreement until you choose to migrate under Section 3(6) of the Act.
Why it matters
Telecom without network capex
You skip spectrum auctions, tower build-outs and core equipment. A VNO pays far less in fees and guarantee than a network operator.
You pay only for what you sell
Five authorisation types replace a bundle of up to 15 service licences, so you apply only for the service you will sell.
Long validity
An authorisation can run for up to 20 years and can be renewed. The old licence ran for 10 years.
VNO authorisation categories and government fees
These are the entry-level figures for VNO authorisations under the 2026 Rules, as summarised from the Rules by telecom practitioners. We check them against the Schedules before we quote a client.
| Authorisation | Area | Processing fee | Entry fee | Initial guarantee | Minimum equity |
|---|---|---|---|---|---|
| Unified Service | National | ₹1 lakh | ₹3 crore | ₹4.4 crore | ₹10 crore |
| Access Service | Circle / metro | ₹10,000 | ₹12.5 lakh | ₹20 lakh | ₹1 crore |
| Wireline Access (VNO only) | Circle / metro | ₹10,000 | ₹50,000 | ₹10,000 | ₹1 lakh |
| Internet Service | National | ₹10,000 | ₹10 lakh | ₹1 lakh | ₹10 lakh |
| Internet Service | Circle / metro | ₹10,000 | ₹50,000 | ₹10,000 | ₹1 lakh |
| Long Distance Service | National | ₹10,000 | ₹25 lakh | ₹50 lakh | ₹1 crore |
Net worth must be ₹10 crore for the Unified VNO and ₹1 crore for Access and Long Distance. The lighter categories have no net worth condition. North East and Jammu & Kashmir get concessional entry fees. On top of this, the recurring authorisation fee is 8% of adjusted gross revenue (AGR), with a floor of 30% of the entry fee from the second year.
Documents required
About the company
- Certificate of incorporation, PAN and registered office proof
- MOA and AOA with a telecom or related object clause
- Shareholding pattern and list of directors
- Board resolution authorising the application
Financial proof
- Proof of paid-up equity for the chosen category
- Net worth certificate from a practising Chartered Accountant, where the category needs it
- Financial statements, or an opening balance sheet for a new company
Telecom and technical
- Agreement or term sheet with the parent NSO
- Bank guarantee in the prescribed format for the initial guarantee
- Digital Signature Certificate of the authorised signatory
- Network and service description for the area you apply for
How it works
Choose your service and area
We map your plan to one of the five authorisations. A broadband reseller in one city needs a different category from a company selling mobile plans in several states.
Sign a parent operator
Your VNO runs on a parent NSO. Interconnection goes through the parent, and so does international long-distance traffic. Here is the catch: the commercial agreement has to be settled before anything else.
Match your capital to the category
We check your capital against the table above. If the company must be formed or recapitalised first, we handle that through Private Limited Company registration and arrange the net worth certificate with a practising CA.
File on the DoT portal and take the grant
We upload the documents, pay the processing fee and answer DoT queries. After the Letter of Intent you pay the entry fee, submit the guarantee and receive the authorisation.
Timelines
Authorisation fee, every quarter
Paid within 15 days of the quarter end. The last quarter is paid in advance by 25 March and reconciled afterwards.
Annual revenue statement by 30 June
An audited statement of the previous year’s revenue. We prepare the working papers; your auditor signs.
Unified VNO: post parent details within 7 days
A Unified Service VNO must post its parent NSO contract details, or any change, on the portal within seven days.
What happens if you miss it
Interest on late fee
Delayed authorisation fee carries interest at the SBI one-year MCLR as on 1 April of that year plus 2%, compounded annually.
Fee reassessment
DoT can reassess your revenue declarations. The normal window is four years from the end of the financial year.
Authorisation action
Repeated defaults, an invalid guarantee or a broken parent agreement can put the authorisation at risk. We keep a compliance calendar so no date slips.
Frequently asked questions
What is a VNO licence?
A VNO licence is the permission to provide telecom or internet services using a parent operator’s network instead of your own. Under the Telecommunications Act, 2023 it is now issued as an authorisation by DoT. You run the brand, customers and billing, while the parent provides the network. The authorisation can last up to 20 years and is renewable, so it suits a long-term retail telecom business.
Can a VNO have its own network?
No, a VNO works on the network of a parent NSO for the service it holds. Interconnection with other operators goes through the parent, and international long-distance traffic is routed through the parent as well. If you want your own towers or fibre, you need an NSO authorisation instead. The rules allow one company to hold an NSO and a VNO authorisation in the same area, so you can start as a VNO and add a network later.
Who can apply for a VNO authorisation?
An Indian company that meets the equity and net worth condition for the category can apply. The lighter Wireline Access and circle-level Internet categories need only ₹1 lakh of equity, while the Unified VNO needs ₹10 crore of equity and net worth. Cross-holding limits apply, so a shareholder with more than 10% should not hold a stake in another authorised entity in the same service area, except for VNO and parent arrangements.
How much does a VNO authorisation cost in government fees?
It starts at a ₹10,000 processing fee, a ₹50,000 entry fee and a ₹10,000 guarantee for the circle-level Wireline Access or Internet category. At the top, the Unified VNO pays ₹1 lakh to apply, a ₹3 crore entry fee and a ₹4.4 crore initial guarantee. The recurring fee is 8% of AGR. We confirm every figure against the Rules before quoting.
Do existing UL-VNO holders have to migrate?
No, migration is voluntary. Existing UL-VNO holders keep operating under their current licence agreement until they choose to move under Section 3(6) of the Telecommunications Act, 2023, using the 2026 migration rules. After migration the authorisation fee floor of 30% of the entry fee applies from year two. We can compare both options before you decide.
Do I need a bank guarantee?
Yes, an initial guarantee is part of the grant. It ranges from ₹10,000 for the lightest categories to ₹4.4 crore for the Unified VNO. It is submitted after the Letter of Intent, in the format DoT prescribes. Your bank issues it, and we prepare the draft and the covering documents so the bank can move fast.
How long does the VNO authorisation process take?
The timeline depends on your parent agreement, your documents and DoT queries, so we do not promise a date. Applications move fastest when equity proof, the parent agreement and the guarantee draft are ready before filing. A few extra weeks of preparation is small against a 20-year authorisation.
What compliance follows after the authorisation?
You pay the authorisation fee every quarter within 15 days of quarter end and file an audited revenue statement by 30 June. A Unified VNO also posts parent contract changes within seven days. We prepare the working papers, coordinate with your auditor and file on the portal. You approve the numbers.
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.
The main government charges are the processing fee, the entry fee and the guarantee shown in the table above, followed by the recurring authorisation fee on AGR. The exact figure depends on the category and area you choose.
Ready to begin?
Tell us the service, the area and your parent operator, and we will map the right VNO authorisation and fee before you commit.