What do you understand by IP-1 License?
IP-I license refers to a legal permit accorded by the Department of Telecommunication (DoT) to facilities intending to operate as telecom Infrastructure Providers of Category-I. IP stands for the Infrastructure Provider, a service provider whose infrastructure comprises passive telecom resources. Simply put, the IP-1 license holders deal with the renting/leasing/selling of telecom resources such as dark fibers, Right of Way, towers & duct space.
DoT keeps the tab on such resources so that nothing can stop the telecom industry from growing. Therefore, every service provider is mandated to issue standardised telecom resources to clients. DoT aims to strengthen the telecom sector by providing industries with quality telecom resources.
What areas does Infrastructure Provider serve?
The infrastructure providers serve as a facilitator of passive telecom resources as shown below:
These are some resources that are widely used across the telecom sector and their facilitators fall under the ambit of an IP 1 license. Previously, the said license also encompasses the active resources which later was removed by the government to simplify the business environment.
IP-1 License registration is a legal permit for every infrastructure provider seeking to facilitate level 1 telecom resources. The issuance of this license is done by the Department of Telecommunication.
Who can apply for the IP-1 License in India?
The service provider that falls under the Companies Act 2013 can apply for this license. The applicant firm should have a clean track record from a legal standpoint.
Documents that are mandatory to apply for IP-1 License
The documents that are mandatory to apply for an IP-1 license are as follow:
- Payment concerning the licensing fee in the form of a Demand Draft or Pay Order
- Copy relating to the incorporation certificate of the entity enclosing the signature of the Director/CS/Statutory Auditors
- Equity details of the organisation showing available equity irrespective of diversity and the nationality of equity holders.
- If there is an overseas partner/equity holder/promoter, an authorised copy of the agreement between the domestic entity and the overseas partner.
- If the threshold of FDI (Foreign equity-: Direct + Indirect) in the Indian entity surpasses 40 percent, a copy of FIPB approval is.
- Resolution of BODs/other evidence reflecting that an authorised signatory has signed the application. The resolution must enclose the signature of no other than the company's director.
- Signature of the authorised signature must be approved by the Director via his/her signature.
- Copy of the Memorandum & Article of Association must enclose the signature of the Director/CS. The charter documents must reflect the nature and scope of the business to be carried out by the company.
- 9. List highlighting BODs serving the company along with their nationality.
The detailed process of obtaining IP-1 Licensing in India
The government has simplified the process of obtaining an IP-1 license in India, which is shown below:
Step 1: Download and Fill out the Application
The first step is to head to the DoT portal and download the prescribed application for the IP-I license. The applicant must go through the application carefully to avoid any mistakes during filling it out. Needless to say, any error or misleading information will lead to the cancellation of the application.
Step 2: Fill out the form with the mandatory detail
The application for an IP-I license requires the applicant to fill out the following information:
Note: The application must carry the signatory’s signature and the company’s seal.
Step 3: Submit the application
This step involves the offline application submission at the DoT’s head office. The applicant can visit the New Delhi office of the Department of Telecommunication to serve this purpose. Make sure the secure the acknowledgment slip from the licensing cell soon after application submission.
Step 4: Application vetting
The application and document shall undergo a rigorous vetting procedure performed by the designated officials for any error or misleading information. The application shall stand disqualified if any error pops up during inspection.
Step 5: Grant of certificate
After a successful vetting procedure, the authority will grant the IP-I certificate to the applicant. Post this, the applicant firm can carry out the operation regarding the sale/lease/renting of passive telecom resources.
Registration Guidelines for Entities Seeking IP-1 License
- The applicant firm must be incorporated under the Companies Act 2013
- The registration has nothing to do with the company’s equity structure or composition. Indian entities with foreign equity can also apply for this license.
- The applicant firm is liable to arrange the Right of Way (ROW).
- The decision regarding the acceptance or rejection of the application shall be shared with the application within 15 days from the application submission date.
- The registration for IP-I has nothing to do with the number of entrants
- The IP-I license holder can only deal with resources like dark fibers, Right of Way, duct space, and towers. Also, they are liable to provide services to registered telecom entities on the basis of an agreement enclosing mutually agreed terms.
- The agreement of services should be shared with the governing authority within 15 days from the date on which the parties signed the agreement.
- IP-I registered company must operate in a non-discriminatory manner.
- 12. The application is to be submitted offline at the registered office of DoT.
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Frequently Asked Questions
- Right of Way
- Base Stations
- Duct Space for installing fiber networks.
- Internet access
- Cloud computing