GUIDELINES FOR ISSUE OF LICENCE TO INFRASTRUCTURE PROVIDERS-CATEGORY-II (IP-II)

The Infrastructure Providers Category-II (IP-II) are those Infrastructure Providers who lease / rent out / sell end to end bandwidth i.e. digital transmission capacity capable to carry a message.

The following are the guidelines for issue of Licence for Infrastructure Providers Category II to be called IP-II.

  1. The applicant must be an Indian company, registered under the Companies Act’1956.
  2. The applicant company shall submit the application in the prescribed Application form for grant of a licence for Infrastructure Provider Category-II (IP-II).
  3. The foreign equity in the applicant company will not exceed 49% at any time during the entire licence period. Investment in the equity of the applicant company by an NRI / OCB / international funding agencies will be counted towards its foreign equity. In this regard, the applicant company shall also submit a certificate from the competent authority to the effect that total foreign equity in the applicant company does not exceed 49%.
  4. The applicant company shall make its own arrangements of Right of Way (ROW). However, the Central Government will issue necessary notification on request bringing the IP-II licensees for the purpose of placing telegraph lines under Part III of the Indian Telegraph Act’1885.
  5. The applicant company shall submit Performance Bank Guarantee (PBG) of Rs.100 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.
  6. The Licence Fee in the form of revenue share @ 10% plus contributions towards the Universal Service Obligations ( USO ) Fund with a total cap of 15% is payable .
  7. Provided further that the fee / royalty for the use of spectrum and possession of wireless telegraphy equipment shall be separately payable as per the details and prescription of Wireless Planning & Co-ordination Wing. The fee / royalty for the use of spectrum / possession of Wireless Telegraph Equipment depends upon many factors such as frequency, hop & link length, area of operation etc, the details may be obtained from Wireless Planning & Co-ordination Wing.
  8. Change in the name of the applicant company or the licensee, as the case may be, shall be permitted in accordance with the Companies Act, 1956.
  9. The application shall be decided so far as practicable within 15 days of the submission of the application and the applicant company shall be informed accordingly. In case the applicant is found to be eligible for grant of licence for IP II, the applicant shall be required to deposit the requisite fee and submit bank guarantee and other documents within a period of three months from the date of the issue of the approval and the Licence Agreement shall be signed immediately failing which it will presumed that the applicant is no longer interested and the application will stand rejected.
  10. In case the applicant is found to be not eligible for the grant of licence for IP II, the applicant will be informed accordingly whereafter he can file a fresh application removing the deficiencies.
  11. 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, for leasing / selling/ renting out end-to-end bandwidth within the territorial jurisdiction of India.
  12. Licence will be issued to the applicant without any restriction on the number of entrants in the area of IP II.
  13. The Licensee will lease / sell or rent out end-to-end bandwidth to the other Licensees of Telecom Services on mutually agreed terms and conditions subject to the restrictions issued by TRAI under TRAI Act, 1997. The copy of such agreements shall be submitted to the Central Government within 15 days of signing of a particular agreement.
  14. The detailed terms and conditions applicable to the licence of IP- II Licence are given in the Draft Licence Agreement.
  15. IP-II Licensee shall provide the infrastructure in a non-discriminatory manner.
  16. The applicant company shall pay a processing fee along with the application of Rs. 10,000/- in the form of Demand Draft/Pay Order payable at New Delhi in the name of Pay & Accounts Officer (Headquarter) DOT and the same shall not be refunded for any reason whatsoever.
  17. The application is to be submitted to the Section Officer , BS-I, Department of Telecommunications, Room No.1119, Sanchar Bhavan, , 20 Ashok Road, New Delhi-110 001.

GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
(BASIC SERVICE GROUP)
SANCHAR BHAVAN, 20 ASHOKA ROAD, NEW DELHI-110 001.

APPLICATION FOR LICENCE FOR INFRASTRUCTURE PROVIDER – (IP-II)

1. Name of Applicant Company : _________________________________

                                                _________________________________

2. Complete postal address with

        Telephone / FAX nos./E-mail

i) Corporate Office : __________________________________

                                  __________________________________

ii) Registered Office : __________________________________

                                  __________________________________

3. Name of Authorised Representative

        his designation and Tele. / FAX Nos. ___________________________________
        E-mail

4. Details of payment of processing fee

        (Demand Draft/Pay Order to be enclosed in a separate envelope).

5. Certified copy of Certificate of
        Registration duly certified by the
        Registrar of Companies

        (Please enclose as Annexure-I).

6. Promoters / Partners in the Company
        (details of equity holding)

S.No. Name of Promoter / Indian / Equity Partner Foreign %age.

------- --------------------------------- ------------- -------------

------- --------------------------------- ------------- -------------

------- --------------------------------- -------------- -------------

________________________________________________________________________

(Total foreign equity participation(s), if any, upto the extent of 49%, including NRI equity, both repatriable and non-repatriable, is allowed. Complete break-up of 100% of equity must be given).

7. Certified copy of Agreement between the
        Indian company and foreign partner(s), if applicable
        (Please enclose as Annexure-II).

8. Certified copy of approval of Government
        of India for terms of Foreign Collaboration or
        copy of application submitted to SIA / Government
        in this regard with proof of submission.
        (Please enclose as Annexure-III).

9.     Income Tax Clearance Certificate for the
        last two years

        (Enclose as Annexure-IIIA).

10. Resolution of Board of Directors / other
        proof that the person signing the application
        is authorized signatory

Certificates :

1. I hereby certify that I have carefully read the guidelines on Infrastructure Providers – IP-II. and I undertake to fully comply with the terms and conditions therein.

2. I understand that this application if found incomplete in any respect and/or if found with conditional compliance or not accompanied with the requisite bank guarantee shall be summarily rejected.

3. I undertake to sign the Licence Agreement within notified time failing which my application shall be treated as rejected.

4. I understand that all matters relating to the application will be subject to jurisdiction of courts in Delhi / New Delhi only.

5. I understand that if at any time any averments made or information furnished for obtaining the licence is found incorrect then my application and the licence if granted thereto on the basis of such application shall be cancelled .

Date                                                                              Signature and name of the

Place                                                                          Authorised Signatory

                                                                                            (Company’s seal)
 

File No.10-04/2003-BS-I

Government of India

Ministry of Communications & IT

Department of Telecommunications

(Basic Service Cell)

Sanchar Bhawan, 20 Ashoka Road, New Delhi � 110 001.

 

Date: 16.03.2004. 

 

MEMORANDUM

 

 

           Subject:  Amendment in the Guidelines  for Infrastructure   Provider (Category-II).

 

 

The undersigned is directed to inform that clause � 5 of the Guidelines  for Infrastructure Provider (category-II) has been amended  and replaced by the following para :

 

� The applicant company shall submit Bank Guarantee (BG) from any Scheduled Bank in India for an amount of Rs. 05 crores (which is reviewable from time to time at the discretion of the Licensor and can be raised equal or above the amount payable as license  fee for two quarters of the year) in the prescribed proforma annexed, before signing the Licence Agreement for ensuring  full compliance of LICENCE conditions including timely payment of Licence Fee and other dues/fees/royalty for use of spectrum/possession of wireless telegraphy equipment.  Initially, the BG shall be valid for a period of two years and shall be renewed from time to time till the expiry of the LICENCE.�     

 

 

 

                        (Govind Singhal )

                   Director (BS-III)

Government of India

Ministry of Communications & Information Technology

Department of Telecommunications

(Basic Services Licensing Group)

Sanchar Bhavan, 20 Ashok Road,  New Delhi-110 001.

 

 

No.10-4/2003-BS.I                                                                     Dated, the 24th June,  2004.

 

Office Memorandum

 

Sub:    Amendment to Clause 6 of the Guidelines   for issue of Licence Agreement  for Infrastructure Provider Category � II.

 

 

          The undersigned is directed to convey the approval of the competent authority for amendment of  Clause 6 of the Guidelines  for issue of licence to  Infrastructure Provider Category � II.  The amended clause may be read as:

 

Existing Clause 6 of the Guidelines

Amended Clause 6 of the Guidelines

The Licence Fee in the form of revenue share @ 10% plus contributions towards the Universal Service Obligations (USO) Fund with a total cap of 15% is payable.

 

Provided further that the fee / royalty for the use of spectrum and possession of wireless telegraphy equipment shall be separately payable as per the details and prescription of Wireless Planning & Coordination Wing.  The fee/ royalty for the use of spectrum / possession of Wireless Telegraph Equipment depends upon many factors such as frequency, hop and link length, area of operation etc., the details may be obtained from Wireless Planning & Coordination Wing.

Annual Licence Fee in the form of revenue share at a rate of 6% of Adjusted Gross Revenue (AGR) shall be payable.

 

Provided further that the fee / royalty for the use of spectrum and possession of wireless telegraphy equipment shall be separately payable as per the details and prescription of Wireless Planning & Coordination Wing.  The  fee/ royalty for the use of spectrum / possession of Wireless Telegraph Equipment depends upon many factors such as frequency, hop and link length, area of operation etc., the details may be obtained from Wireless Planning & Coordination Wing.

 

 

( Govind Singhal)

Director (BS.III)

 

To

 

1.      All Infrastructure Provider Category �II (IP-II) Licensees.

 

Copy for information to:

1.  Secretary, T.R.A.I., Safdarjung Enclave, New Delhi.

2.       DDG (LF), Dept. of Telecom, New Delhi.