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IPLC License: Everything that you need to know about

The government of India introduced the “Resale of IPLC” License to promote competition and affordability of services within the Resale or IPLC (International Private Leased Lines) segment. It allows the licensee to resell telecommunication services over international private leased circuits. 

Resale of International Private Leased Circuits is a service that requires the service provider to sign an agreement with an ILD service provider to lease international private circuits.

Then, he has to provide telecommunication services over these circuits to foreign countries.

To conduct such a niche enterprise, the service provider must obtain the “Resale of IPLC” license from the Department of Telecommunication.

In this article, we are diving into this topic and swimming through its muddy and complex waters to answer the following questions for you:

  1. General guidelines for the IPLC license?
  2. Eligibility criteria that you must meet before applying for this certification?
  3. Procedure to obtain this authorization?
  4. Documents do you need to provide to start the application procedure?

What are the general guidelines for the IPLC License?

The following four points focus on the broad guidelines for the Resale of IPLC license:

  1. The licensee of the IPLC license can only obtain one such certification to provide telecommunication services to his subscribers.
  2. The licensee has the permission to buy and resell the bandwidth of Telecommunication Service providers and other IPLC license holders.
  3. IPLC licensee has to establish a cable station per the rules specified in the ILDO regulations.
  4. An IPLC licensee has to create its infrastructure for billing, multiplexing, and de-multiplexing.

Eligibility criteria to obtain the IPLC license

The aspirant of the IPLC license has to meet the following eligibility criteria:

  1. The applicant must be a company incorporated as per the Companies Act, 2013
  2. Applicant must have the technological capability to perform all the duties required from an IPLC licensee.
  3. The applicant must have a net worth of INR 2.5 Crore.
  4. If the applicant has access to foreign direct investment, it must be as per the FDI policy. The FDI policy states that FDI up to 49% can continue to be through the automatic route – requiring no FDI certification. But if it exceeds that limit, the applicant must obtain the FIFP approval for telecom.

Standard procedure to get the IPLC license

The Department of Telecommunication has formulated a standard procedure to get the Resale of IPLC license. The steps of that process are as follows:

  1. Furnishing the required documents.
  2. Filling and submission of the application form.
  3. Obtaining the letter of intent.
  4. Following the directions specified in the letter of intent. These directives entail payment of entry fees and depositing of bank guarantees.
  5. Obtaining the IPLC Certificate.

Documents required to obtain the IPLC license

The documents required for the IPLC license are as follows:

  1. Certificate of incorporation to prove that the applicant is a company.
  2. Memorandum of Association that tells the DOT about the nature of the applicant’s business
  3. Articles of Association specifying the rules and regulations the applicant company has sworn to follow.
  4. Net worth certificate of the applicant’s company after a certified Chartered Accountant has audited it.
  5. Audited balance sheet and Profit & Loss statements of the company.
  6. Technical specification of the International Private Leased Cable.

Conclusion

Through this blog, we have unveiled everything that you need to know about the IPLC license. Despite our best efforts, some of the terminologies are still too complicated to comprehend.

But don’t worry about that. If you have any queries about IPLC Registration and want to apply for the same, consult with our DOT experts.

Here is everything that you need to know about the IPLC license. It details the definition, the documents, and the eligibility criteria to obtain the Resale of IPLC Licenseor Certification.

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