IP1 License is the authorization given to infrastructure providers company to facilitate telecom industry with passive telecom resources. As a business license, it didn’t use to be in a lot of demand but the rise of internet in India and the telecom companies has stimulated an era of this business.
If you’re looking for this license, then there are some facts that you should know about it in a thorough manner.
Fact 1: IP1 License doesn’t give you the power to sell telecom resources
What is IP1 License?
To a layman, it’s a license to do a business involving passive telecom resources. These resources are provided to telecom companies. And when I say provided, I don’t mean sols. Getting the Ip 1 License in India gives you the power to only rent or lease the telecom resources to telecom companies or Other Service Providers.
Fact 2: IP1 license is only meant for passive telecom resources
We have been chanting the word “passive” for a long time till now. What does the term mean? It means non-electronics. IP1 in the IP-1 License registration stands for category 1 of infrastructure provider. In this context, category 1 categorizes non-electronic resources.
Fact 3: Only a company is allowed to apply for an IP1 license in India
Infrastructure providers are not individuals, they are companies. Thus, if you’re thinking of becoming an infrastructure provider, you must incorporate your business as a private limited company. It’s only after that you can apply to become one of few Ip-1 license holders in India.
Fact 4: There are only 4 resources that you can provide using IP1 License
The passive telecom resources that you can provide using IP1 license are only four. These four resources are known as the foundation of telecommunication.
- Right of Way to enable unbound wired connections.
- Dark Fibre to enable high speed internet connections
- Duct Space to enable heat ventilation to maintain resources’ health
- Cell Towers to enable wireless connections
Fact 5: You can have foreign direct investment in your company
The Department of Telecommunication issued the IP1 License on a non-discriminatory basis. Meaning that in case you have foreign investment in your company, you can still apply for the license. If the investment is up to 49% of your company’s total capital, you won’t need to provide any additional requirements. However, if the FDI exceeds this limit, you’re required to get certification from FDPI first.
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Fact 6: You need to adhere to all the terms and conditions
Even though the DOT IP1 license is valid for eternity and you can surrender it if you can see fit, that doesn’t mean you don’t have to put an effort to retain the license. The Department of Telecommunication is strict about the code of conduct of a telecom business. Therefore, if you break any rules pertaining to telecom regulations, DOT can cancel your license.
Fact 7: You have to pay a one-time non-refundable license fee
Registering a category 1 infrastructure provider business requires payment of a onetime IP-1 License fee. It’s INR 5,000/-.
If you’re at all interested in IP1 License, then keep the above-mentioned facts in mind. And if you’re interested in obtaining the license, keep Registrationwala’s number in cellphone’s files.