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Licenses taken by GAILTEL

IP-II (Infrastructure Provider Category-II)

  • The Infrastructure Providers Category-II (IP-II) are permitted to lease / rent out / sell end to end bandwidth i.e. digital transmission capacity capable to carry a message only to the Licensees of GAILTEL Services on mutually agreed terms and conditions

  • The foreign equity in the applicant company will not exceed 49% at any time during the entire licence period.  

  • No eligibility requirement.

  • No entry fee

  • The applicant company shall submit Performance Bank Guarantee (PBG) of Rs.100 crores (now Rs 5 crores) before signing of the Licence Agreement for ensuring compliance of licence conditions including timely payment of licence fee and other dues/fees/royalty for use of  spectrum/possession of wireless telegraphy equipment in the prescribed Proforma given in the Draft Licence Agreement.

  • Initially the PBG shall be valid for a period of two years and shall be renewed from time to time till the expiry of the licence, as directed by the  Licensor.

  • The Licence Fee in the form of revenue share @ 6% including  contributions towards the Universal Service Obligations    ( USO ) Fund  is payable .

  • The licence for IP II shall be issued on non-exclusive basis, for a period of 20 years, extendable if found expedient, by 10 years at one time.

  • Licence will be issued to the applicant without any restriction on the number of entrants in the area of IP II.

  • IP-II Licensee shall provide the infrastructure in a non-discriminatory manner.

  • The applicant company shall make its own arrangement for Right of Way (ROW).

  • The IP-II licensee is not allowed to provide the bandwidth directly to end-users.

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IP-I  (Infrastructure Provider Category-I)

  • This service can be provided by any entity without any license by a simple registration.

  • The registration for IP-I shall be on non-exclusive basis without any restriction on the number of entrants.

  • There is no upper limit on Foreign Equity in the company.

  • The IP-I registered company shall provide dark fibres, Right of Way, duct space, towers on lease / rent out / sale basis to the licensees of GAILTEL services on mutually agreed terms and conditions.

ISP (Internet Service Provider-'A')

Entry Criterion

ELIGIBILITY: Applicant should be a company registered in India with a maximum of 100% foreign equity (Incase of Internet Gateway Service Provider foreign equity limited to 74%).

LICENSE FEES:Nil (Re. 1 per annum after 5 years).

NO OF ISPs IN AN AREA: Unlimited.
PERIOD OF LICENSE: 20 years
Based on Service Area of Operation, they are categorized as 'A', 'B' and 'C'.

Type of License

Coverage

Bank Guarantee Amount (INR)

Category 'A'

All India

2.0 Crore

Category 'B'

20 territorial GAILTEL Circles, four Metro Districts- Delhi, Mumbai, Calcutta or Chennai and four major Telephone Districts-Ahmedabad, Bangalore, Hyderabad or Pune

20.0 Lakhs

Category 'C'

Any Secondary Switching Areas (SSA) of DOT with geographical boundaries as on 1.4.98

3.0

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Type of Services

  • Subscriber Dialup access
        -2 wire access over PSTN with modem interface
        -2 wire access on ISDN with Basic Rate Interface (BRI).

  • Leased line Access
        -64Kbps,Nx64Kbps,2Mbps,Nx2Mbps

  • Co-location, Hosting, Data Centre facilities

  • Content provision    

  • International Internet Gateway Service   

  • Unified Messaging Service (UMS)

GENERAL CONDITIONS

  • ISP shall install their own equipment (Node) to provide Internet Services.
    ISPs are also allowed to set up International Gateways (without separate   licence but limitation of foreign equity upto 74%)

  • ISP shall be responsible for
    (i)     Installation of Internet nodes (POP)
    (ii)    Operation and maintenance of their Infrastructure
    (iii)   Start of commercial service within 18 months of license

CUSTOMER ACCESS

  • ISP may provide Internet Service to any VSAT  subscriber (only for internet Traffic).

  • VSAT Hub need not be located in the service Area

  • ISPs should use TCP/ IP protocol and meet interface requirement as per TEC.

  • Access to Internet through the network of authorised cable operators is permitted. 

  • Radio/ Optic Fibre based access can be provided by ISPs to the customers.

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