How to start a small ISP center, that’s not an ISP?

An ISP or an Internet Service Provider is not just a business, it’s a task. And like any task, it’s meaning is open to different interpretations depending on how the center is providing internet access.

Is it producing the bandwidth?

Is it reselling the bought bandwidth to subscribers?

Has it implemented a lot of hardware resources?

Does it provide internet to a large region?

There is an saying in internet business – not a well known one. It reads “ If you want to go big, start an ISP. But if you want to merely plant a seed, start a VNO”

A VNO or a Virtual network operator is not so different from an ISP. Being also an internet service provider, it also requires a particular license – called VNO License – to exist. However, unlike an ISP, it takes the cheapest route. It provides internet by buying bandwidth from others and reselling it. Instead of using a lot of hardware to provide internet access, it relies on a Virtual Network. And, in most cases, instead of providing internet everywhere, it only helps a small region. So, you can say that when you get a unified license to start a VNO, you get small ISP center, that’s not an ISP.

So, how to start such a business? All you need is a UL VNO License or Unified License for VNO, and this blog will tell you all about it.

Internet service centers come under the authority of Department of Telecommunication. That body watches over the services that centres provide, and the resources that they implement. It’s also the primary body responsible for issuing the license at a pre-determined VNO License cost. More or that later.

First, know some of the features of VNO License India:

1. VNO License grants you permission to setup as a Virtual Network Operator to provide low cost internet access.
2. The permission is only valid for 10 years.
3. In case there is a some change in policy while you are still within the validity period of the license, and the change in policy in facts that period, your validity can increase or decrease. In simple terms, any change in DOT policy has an effect on VNO license, even when you’ve already gotten it.

If you squint your eyes and read the things that you can do with both of these licenses, you won’t know the difference. Both of them:

1. Allow you to provide internet access.
2. Allow you buy and resell bandwidth.
3. Allow you to either provide internet all over the country, or in a small region, depending upon the category of ISP or VNO.
4. Require you to sign a unified license agreement.

So where is the difference. The difference lies in the overarching license fee and the required infrastructure to maintain the business.

1. The difference between VNO License India and ISP License is huge, with ISP license being more expensive of the two.
2. The hardware requirements of operating a VNO are far lower than operating an ISP.
3. A VNO License is valid for a period of 10 years compared to 25 years of the ISP License.
4. Unlike VNO License, once you get ISP License, your validity won’t face any negative of positive impact of policy changes in DOT.

So, which one is better? Well, which one is your preference? Do you want to go big, or do you want to just plant an internet seed?

To give you the Unified license, DOT has put forth simple steps. You can follow them towards the end where all you need to do is sign the VNO License agreement with the department. The steps are:

1. Choose the category C of VNO to start a small internet centre to provide internet access to a tiny hamlet, village or a town.
2. Establish either a private or a public limited company to act as the infrastructure of your VNO business.
3. Create a file and put in the required documents.
4. File the offline application as VNO license online apply is not possible at this point in time. Even though the SARALSANCHAR portal is slowly moving towards it.
5. Receive the Letter of Intent containing further instructions for you.
6. Pay the performance bank guarantee and the financial bank guarantee and email the document proofs of them to the Department of Telecommunication.
7. Acquire the VNO License, MVNO license if you’ve applied for mobile specific internet.

Unified license, meaning the license that unifies all forms of internet services, doesn’t need you to spend a lot of money on an ISP. If you’re a smart and are just planning your business, you can put it into startup and get the VNO License, giving you the power to start a Non-ISP center to provide internet.