IP-II (Infrastructure Provider Category-II)
- The Infrastructure Providers Category-II (IP-II) are permitted to lease / rent out / sell end to end bandwidth i.e. digital transmission capacity capable to carry a message only to the Licensees of GAILTEL Services on mutually agreed terms and conditions
- The foreign equity in the applicant company will not exceed 49% at any time during the entire licence period.
- No eligibility requirement.
- No entry fee
- The applicant company shall submit Performance Bank Guarantee (PBG) of Rs.100 crores (now Rs 5 crores) before signing of the Licence Agreement for ensuring compliance of licence conditions including timely payment of licence fee and other dues/fees/royalty for use of spectrum/possession of wireless telegraphy equipment in the prescribed Proforma given in the Draft Licence Agreement.
- Initially the PBG shall be valid for a period of two years and shall be renewed from time to time till the expiry of the licence, as directed by the Licensor.
- The Licence Fee in the form of revenue share @ 6% including contributions towards the Universal Service Obligations ( USO ) Fund is payable .
- The licence for IP II shall be issued on non-exclusive basis, for a period of 20 years, extendable if found expedient, by 10 years at one time.
- Licence will be issued to the applicant without any restriction on the number of entrants in the area of IP II.
- IP-II Licensee shall provide the infrastructure in a non-discriminatory manner.
- The applicant company shall make its own arrangement for Right of Way (ROW).
- The IP-II licensee is not allowed to provide the bandwidth directly to end-users.
IP-I (Infrastructure Provider Category-I)
- This service can be provided by any entity without any license by a simple registration.
- The registration for IP-I shall be on non-exclusive basis without any restriction on the number of entrants.
- There is no upper limit on Foreign Equity in the company.
- The IP-I registered company shall provide dark fibres, Right of Way, duct space, towers on lease / rent out / sale basis to the licensees of GAILTEL services on mutually agreed terms and conditions.
ISP (Internet Service Provider-'A')
Entry Criterion
ELIGIBILITY: Applicant should be a company registered in India with a maximum of 100% foreign equity (Incase of Internet Gateway Service Provider foreign equity limited to 74%).
LICENSE FEES:Nil (Re. 1 per annum after 5 years).
NO OF ISPs IN AN AREA: Unlimited.
PERIOD OF LICENSE: 20 years
Based on Service Area of Operation, they are categorized as 'A', 'B' and 'C'.
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| Type of License |
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Coverage |
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Bank Guarantee Amount (INR) |
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| Category 'A' | |
All India |
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2.0 Crore |
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| Category 'B' |
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20 territorial GAILTEL Circles, four Metro Districts- Delhi, Mumbai, Calcutta or Chennai and four major Telephone Districts-Ahmedabad, Bangalore, Hyderabad or Pune |
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20.0 Lakhs |
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| Category 'C' |
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Any Secondary Switching Areas (SSA) of DOT with geographical boundaries as on 1.4.98 |
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3.0 |
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Type of Services