ISP (Internet Service Provider) License is being given to MSO by DoT (Department of Telecommunication) under UL (Unified License) System. It has been divided into three category- A, B & C. License for category A is given for All India business, license for category B is given for State level business and license C is given for District level business. License fee is defined as per category (A-higher, B-high and C-normal). Category C is most preferable for MSO and government fee for the same is Rs Ninety Thousand (Rs 10,000/- is application fee, Rs 20,000/- is registration fee and Rs 60,000/- is bank guarantee).
ISP License is given to that business entity only which is registered under ROC as Private Limited or Limited Company. If any MSO wants to obtain the ISP License then that needs to form the company mandatorily, if it is running as proprietorship or partnership firm. It is being observed that the process of issuing ISP License is of approx. 2-3 months. This license is also open to obtain by Non-MSO business entity to run the broadband business.