DoT allows resale of IPLC service

In a bid to increase availability of bandwidth for the fast-growing small and medium enterprises (SME) segment, the Department of Telecommunications (DoT) today permitted the resale of International Private Leased Circuits (IPLC).

To boost competition and affordability in the IPLC segment, the DoT has created a new category of licence called “Resale of IPLC Service” that will be permitted to enter into agreements for leased line with access providers, national long distance service providers and international long distance service providers for provision of IPLC to end customers.

Industries like business process outsourcing units, software exporters, call centres and banks are likely to benefit most from this step, given their heavy usage and dependence on leased line services.

According to the norms laid down by the DoT, only Indian registered companies are permitted to apply. The net worth and paid-up capital of company is required to be a minimum of Rs 2.5 crore. It should also be compliant with the current foreign direct investment (FDI) norms where the foreign equity in the paid-up capital of the company must not exceed 74 per cent.

The applicant should have an initial financial bank guarantee of Rs 1 crore. The entry fee has been set at Rs 1 crore, while the annual licence fee shall be 6 per cent of the adjusted gross revenue (AGR), or Rs 5 lakh, whichever is higher.