VNO License in India is not cost-free: Here is what you need to pay

If you’re one of the entrepreneurs who wants to make it big without making any investment, I have got a news for you. it’s impossible. A VNO License, often considered a license to start an affordable ISP is often seen as something that’s cost-free. Because most bloggers ignore to tell you that there is cost involved with starting a VNO ISP, many of you seem to think that the license itself is free of cost.

It’s not.

A VNO, or a Virtual Network Operator is only allowed to exist because the Department of Telecommunication wanted to provide more internet access in the country. So, the bottom line:

 The license doesn’t exist to give you benefit, it’s to give the benefit to your subscribers.

So, if you’re willing to start a virtual network operator to provide internet services, read this blog. It explains the intellectual, infrastructural and the legal cost to start a VNO.

Intellectual VNO license cost: The one that’s most ignored

it’s our nature to seek that next big thing that can make us relevant and make us money.  Many entrepreneurs see a VNO in that way. You don’t have to be among them. that’s you must know the intellectual cost of starting a VNO License.

  1. Knowledge about the servers: it goes without saying that to maintain your internet services, you need to have experts that can maintain your servers.
  2. A leader who can assist you and your team in technical matters:  As the VNO License is only issued to a private limited company, you’d definitely need another director to work with you. make sure that this other director is someone knowledgeable to lead your business. If you don’t have anyone like this, make sure that it’s you with the technical wisdom.
  3. Hardware experts:  As a VNO ISP, you’d require to put ample of investment in human resource to find hardware experts. They would be the one of the front lines – helping your subscribers with internet access.

These are the  three major intellectual cost of VNO License in India. But they are not enough, you’re still left with infrastructural and legal cost.

Infrastructural VNO License cost: The cost of setup the business

If you think that you can just get the license and start a VNO from your own home – find another trade to earn profits from. A VNO, despite being marketed as an “inexpensive internet service provider”, needs a proper infrastructure. In fact, your investment in your infrastructure that the  Department of Telecommunication assesses to see whether you’re capable to fulfil the terms of VNO License.

Following are the infrastructural costs:

  1. Elevated location: Your infrastructure – the base through which you’d provide your internet services should be in an elevated region.
  2. Network establishment: Have a spacious room in which you can establish the root of your network.
  3. Dark Fibres: Optical fibres are the key to good internet services. Invest  a good amount of money in acquiring a good quality of them of a good quality.

Legal VNO License cost: The cost of obtaining and maintaining the license

Finally, there is a cost associated with getting the license itself. It includes the following:

  1. Application processing fee: It’s the cost that you pay to the DOT to assess your application.
  2. Entry fee: it’s the cost you pay to the DOT to enter into the internet services field.
  3. Financial bank guarantee: Near the end of the process, when you receive the letter of intent, you need to deposit the financial bank guarantee. It secures your VNO ISP in case of any damages.

Conclusion

As you can see, you still have to bear a lot costs when starting a VNO in India. Granted that most of them are skill and infrastructure-based, but they are essential cost nonetheless. Thus, next time you approach a DOT license consultant to assist you, expect to pay up.

If you think, VNO license is just handed for free, you’re wrong.  VNO License in India is not cost-free: Here is what you need to pay. If you have more questions about this matter, consult with Registrationwala.

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