Which telecom licence is right for your business in India
Choosing between an ISP licence (Internet Service Provider under the Unified Licence) and a VNO licence (Virtual Network Operator under UL-VNO) is the first decision for anyone entering India's telecom market. Both are issued by DoT, but they serve different business models and carry different capital and infrastructure requirements.
| Feature | ISP Licence (UL-ISP) | VNO Licence (UL-VNO) |
|---|---|---|
| Own network / spectrum | Yes — you build or lease infrastructure | No — you lease capacity from a licensed access operator |
| Capital requirement | Higher (own infra, PBG + FBG) | Lower (no PBG, only FBG; no spectrum cost) |
| Entry fee (Cat C) | ₹20,000 | ₹10,000 |
| Business model | Full ISP — own broadband, Wi-Fi, leased lines | Resell under your brand on leased network |
| Best for | Operators wanting network control & margin | Startups, regional brands, enterprises wanting fast market entry |
| Infrastructure risk | You own/operate the network | Access operator handles network ops |
| Time to launch | Longer (infra build + licence) | Shorter (lease ready network + licence) |
| Scalability | Scale by expanding own infra | Scale by adding access-operator agreements |
Choose an ISP licence if you want full control over network quality, plan to build physical infrastructure, and have the capital for PBG/FBG and entry fees. Choose a VNO licence if you want to launch a telecom or internet brand quickly with lower upfront investment — you lease capacity from an existing access operator and focus on customer acquisition and services.
Yes. A single entity can hold both ISP and VNO authorisations. Some operators start as a VNO to enter the market fast, then add an ISP authorisation as they build out infrastructure.
Under the Telecommunications Act, 2023 and the new authorisation framework (notified 23 June 2026), the 'licence' terminology is being replaced by 'authorisation'. The practical categories, fees and eligibility remain similar during the transition. We guide you through the current regime.