How to get license to provide International Long Distance services?

What and Why of International Long Distance Services?

The world is a segregated place in many ways, for our concern, say in internet connectivity. Depending on the terrain and its habitation, some regions on this planet have abundant internet access while for other places, these essential networking resources are scarcely available.

Many of us have personally experienced such issues with internet availability when we cross an unknown terrain or visit an underdeveloped or developing nation with meagre internet connectivity resources.

To counter such an unequal distribution of network resources and to provide uniform network connection to all the people of all the world’s places, there is a need for specialized telecommunications infrastructure to provide cross-boundary international network services by connecting different existing networks of nations.

These services offered by the networks interconnection are termed as International Long Distance (ILD) services. These services use specialized equipment which are regulated by the guidelines set forth by the Department of Telecommunication (DoT). The DoT regulated such ILD services using ILD license.  Read More: Trademark Renewal

What is an ILD License?

An ILD license is the legal permit to provide long distance connectivity, which crosses national boundaries, to the networks that are operated by foreign carriers of different nations. This legal authorization is issued by the Department of Telecommunication (DoT), Ministry of Communications and I.T., Government of India.

This ILD License enable the Unified License (UL) holders to incorporate international network connectivity to their services along with their usual business.

List of some companies having ILD Service Licence

Here we are mentioning some of the famed companies that you might have heard of, possessing an International Long Distance service License under a Unified License (UL) regime along with their date of issue.

How to get an ILD (International Long Distance) license?

To get an ILD license in India, one must be aware of the eligibility criteria set forth by the DoT for any company (registered) to apply for the said legal permit. These criteria area are as follows.

1. Eligibility Criteria

• The applicant must be an Indian company, registered under the Companies Act, 2013.
• The applicant company shall submit the application in the prescribed Application format.
• The applicant company can apply for only one licence for ILD service.
• The ownership of the license, as per the normal route, should lie with the ILD license applicant company. The Foreign Direct Investment (FDI) in the applicant company must be equal to or less than 49%. If the FDI has to go beyond the 49% stakes, then the applicant must get the prior approval of Foreign Investment Promotion Board (FIPB).
• An ILD License holder company after the license procurement must adhere to the security conditions put forth by the DoT.
• The net worth capital and the paid up capital of the applicant company must be at least INR 2.5 crores.

Note: Paid up capital is what a company earns by sharing its stocks in exchange of money to its shareholders. This capital comes from selling the company’s shares on the primary market directly to investors, mainly by an IPO (Initial Public Offering). Read More: Trust Registration

• The ILD services license is valid for 20 years. After the license expiry after twenty years from the date of issue, the company can apply for ILD license renewal for a period of 5 years.

After ensuring that the eligibility criteria are met by the applicant, the next step would be to compile all the required documents for successfully filing for the ILD License application. Below mentioned is the list of requisite documents to be furnish.

2. Documentation for ILD License registration

• CoI (Certificate of Incorporation) of the applicant company
• MoA (Memorandum of Association) and AoA (Articles of Association) of the applicant company
• Business plan of the proposed ILD licensed company in full details
• Financial arrangement for funding the specialized infrastructure for providing ILD services.
• Processing fee pay order or Demand Draft, whichever is applicable or suited for the company
• List and details of the directors or promoters or partners and shareholders of the applicant company.
• Equity Details of the company which must be ensured by a Certificate of Company Secretary of the Company’s statutory auditor.
• A copy of agreement between the applicant company of Indian origin and the foreign partner, both of whose resources are to be pooled to establish an ILD service platform.
• Board of Company’s resolution that authorizes the signatory to get the ILD permit.
• Self-declaration that the details mentioned by the applicant in the application is true in all its form.

After you have compile the requisite documents, then finally you can apply for ILD license registration online. The step-by-step procedure for registering an International Long Distance license is as follows:

3. Procedure for License registration 

• Furnish the compiled documents and get them attested by an authorized signatory.
• With your documentation taken care of, file the license registration application online on the official website.
• After the successful submission of the application, the Department of Telecommunication (DoT) will conduct a thorough assessment of the application.
• If the application is accepted, the company will receive a letter of intent from the DoT.
• After receiving the letter of intent, the applicant has to fulfil the Financial Bank Guarantee (FBG) and Performance Bank Guarantee (PBG) requirements:
  • PBG: INR 25 crores (non-refundable, one-time fee)
  • FBG: INR 20 crores (pay within one year of issue of license)
• One the payments are successful, the DoT will issue the International Long Distance license to the company.

Get your ILD License in no time with Registrationwala

As you can see that the procurement of ILD license is a complex one and you cannot successfully register yourself in time without a legal aid by your side. As one of the India’s leading telecom experts, Registrationwala is well aware of the big (and small) details that are taken into account when applying for ILD services license. We provide the following services to our clients in matters of ILD license registration:

• Compiling the require documents and filing your application, on your behalf.
• Our chartered accountants will issue you the Net worth certificate.
• After filing application online, we conduct department follow-ups on your behalf to expedite the process of ILD license assessment and approval.
• We secure all your details filled after obtaining the letter of intent.

Register at your website to get start with your application process to get your International Long Distance services license. Read More: DPL License