💰 ISP & VNO Licence Fees, Bank Guarantees & Govt Cost

Processing fee · Entry fee · PBG · FBG · Total cost per licence

All numbers below are one-time, per-authorisation government amounts in INR. Use them to budget before you apply.

ISP Licence (Unified Licence — Internet Service): fees, PBG, FBG & total

AuthorisationProcessing fee*Entry fee*PBGFBGMin equityMin net worthNon-refundable govt costFunds to arrange
ISP Category A (All-India)₹15,000₹30,00,000₹40,00,000₹2,00,000——₹30,15,000₹72,00,000
ISP Category B (Circle/Metro)₹15,000₹2,00,000₹2,00,000₹20,000——₹2,15,000₹4,20,000
ISP Category C (SSA)₹10,000₹20,000₹10,000₹2,000——₹30,000₹32,000

VNO Licence (UL-VNO): fees, FBG & total per authorisation

AuthorisationProcessing fee*Entry fee*PBGFBGMin equityMin net worthNon-refundable govt costFunds to arrange
UL-VNO (All Services)₹1,00,000₹7,50,00,000—₹4,40,00,000₹10,00,00,000₹10,00,00,000₹7,51,00,000₹11,90,00,000
VNO — ISP Category A₹50,000₹15,00,000—₹1,00,000——₹15,50,000₹16,00,000
VNO — ISP Category B₹15,000₹1,00,000—₹10,000——₹1,15,000₹1,10,000
VNO — ISP Category C₹10,000₹10,000—₹1,000——₹20,000₹11,000
VNO — Access (Circle/Metro)₹50,000₹50,00,000—₹20,00,000₹10,00,000₹10,00,000₹50,50,000₹70,00,000
VNO — NLD (National)₹50,000₹1,25,00,000—₹50,00,000₹10,00,000₹10,00,000₹1,25,50,000₹1,75,00,000
VNO — ILD (National)₹50,000₹1,25,00,000—₹50,00,000₹10,00,000₹10,00,000₹1,25,50,000₹1,75,00,000
VNO — VSAT (National)₹50,000₹15,00,000—₹3,00,000——₹15,50,000₹18,00,000
VNO — PMRTS (Circle/Metro)₹15,000₹25,000—₹10,000——₹40,000₹35,000
VNO — GMPCS (National)₹50,000₹50,00,000—₹10,00,000₹10,00,000₹10,00,000₹50,50,000₹60,00,000
VNO — Resale of IPLC (National)₹50,000₹50,00,000—₹10,00,000₹12,50,000₹12,50,000₹50,50,000₹60,00,000
VNO — Access Cat B (Districts)₹10,000₹1,65,000—₹20,000—₹5,00,000₹1,75,000₹1,85,000
VNO — M2M Category A₹50,000₹15,00,000—₹1,00,000——₹15,50,000₹16,00,000
VNO — M2M Category B₹15,000₹1,00,000—₹10,000——₹1,15,000₹1,10,000
VNO — M2M Category C₹10,000₹10,000—₹1,000——₹20,000₹11,000

Non-refundable govt cost = processing fee + entry fee (paid to DoT, not returned). PBG (Performance) and FBG (Financial) Bank Guarantees are refundable securities you must arrange (cash/collateral) — returned/adjusted on compliance. 'Funds to arrange' is the one-time outlay you must provision at grant. Figures from DoT guidelines / UL-VNO Annexure-I and are periodically revised — PodNet confirms the current values for your exact category & service area before you apply. Not legal advice.

PBG & FBG explained — what are they and do you get them back?

PBG (Performance Bank Guarantee) and FBG (Financial Bank Guarantee) are refundable bank guarantees you must arrange before your ISP or VNO licence is granted. PBG covers your network rollout obligations — if you meet the milestones, DoT releases it. FBG covers financial obligations like licence fee payments. ISP authorisations require both PBG and FBG; VNO authorisations require only FBG (PBG is nil). Both are returned or adjusted on compliance — they are not government fees.

Is an ISP or VNO licence transferable?

DoT licences are not freely transferable. An ISP or VNO licence can be transferred only with prior DoT approval, subject to eligibility conditions being met by the transferee. Unauthorised transfer or sub-letting is a violation and can lead to licence cancellation.

ISP licence renewal process

The Unified Licence is valid for 20 years (UL-VNO for 10 years). Before expiry, you apply for renewal through the DoT e-services portal with updated compliance documents and payment of the renewal fee. Under the 2026 authorisation rules, existing licences transition to the new framework in phases — licences with a definite period continue till expiry.

Recurring government costs after grant: Licence fee 8% of AGR (inclusive of USO levy ~5% of AGR), Spectrum Usage Charges where applicable, and an annual minimum licence fee from the 2nd year (10% of the entry fee per authorised service). UL validity = 20 years (UL-VNO = 10 years).

UL-VNO: no separate PBG (nil) — only FBG applies. Max combined net worth & paid-up equity for UL-VNO is capped at ₹10 crore each. For VNO-ISP, DoT prescribes no minimum equity/net worth.

Prices, entry fees, bank guarantees (PBG/FBG) and eligibility are set by the Department of Telecommunications (DoT) and vary by category, authorisation and service area. Figures above are indicative; we confirm the exact current requirements for your case before you apply. This page is informational and not legal advice.

⚠️ Accuracy & no-responsibility note:
This page is provided for general information only. Telecom licensing rules, fees, bank guarantees (PBG/FBG), eligibility and timelines change frequently and can vary by category, service area and applicant. Information here may be incomplete, out of date, or inaccurate, and should not be relied upon for any decision. Always cross-check with the official Department of Telecommunications (DoT) / TRAI portal and independent legal or licensed advice before acting. This page is not legal, financial or professional advice and creates no obligation. The site owner & PodNet accept no responsibility or liability for any loss, penalty or damage arising from reliance on this content.
For updates on rates, rules and the current status, please contact us on WhatsApp only — +91 95916 79292.
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