Internet Service Authorisation to Network Service Operator (NSO) means the authorisation to provide telecommunication services referred to as such in sub-rule (1) of rule 74 of Telecommunications (Authorisation for provision of Principal Telecommunication Services) Rules, 2026.

The scope of Internet Service Authorisation for a Network Service Operator (NSO) includes:

(a) internet services;

(b) internet telephony service limited to computers or Internet Protocol based customer premises equipment connecting only the following, namely: —

1. computer to computer, within or outside India;
2. computer, device or adapter, conforming to notified standards, in India to public switched telephone network or public land mobile network user terminals outside India; and
3. any computer, device or adapter, conforming to notified standards, connected in India with internet node using static internet protocol address to similar computers, device or adapter, within or outside India;

(c) domestic leased circuit;

(d) internet leased line;

(e) internet protocol television service, in accordance with applicable law;

(f) machine-to-machine service limited to internet services; and

(g) if the network service operator has internet service authorisation for national service area, it may also provide in-flight and maritime connectivity services limited to internet services

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As per rule 5 of Telecommunications (Authorisation for provision of Principal Telecommunication Services) Rules, 2026, a person specified in clause (a), who also fulfils the conditions in clauses (b), (c) and (d), shall be eligible to apply for authorisation under rule 6, namely: —

(a) it is a company (except One-person Company)—

(i) whose minimum paid-up equity capital is as specified in Schedule C;

(ii) whose minimum net worth is as specified in Schedule C;

(iii) in which foreign direct investment, if any, is in conformity with the policy issued by the Government of India from time to time in respect of foreign direct investment and applicable law; and

(iv) the general character of whose management is sound in terms of its track record in providing telecommunication services or in establishing, operating, maintaining or expanding telecommunication networks in a responsible manner.

(b) if it possesses one or more authorisations or licenses, or applies for one or more new authorisations, it shall fulfil the following conditions, namely: —

(i) it has minimum paid-up equity capital equal to the sum of the minimum paid-up equity capital requirement for each such authorisation or license; and

(ii) it has minimum net worth equal to the sum of the minimum net worth required for each such authorisation or license.

(c) it meets the requirements under rule 12.

(d) it has no pending dues:

Provided that the Central Government may, if it is satisfied that it is necessary in public interest so to do, exempt or relax any condition under this rule.

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Processing fee, entry fee and initial guarantee for authorisations for telecommunication services - 

SI.No.	Category	Service Authorisation	Processing Fee (Rs.)	Entry Fee (Rs.)	Initial Guarantee (Rs.)
1	NSO	Internet Services Authorization  (National)	10,000	10 lakh	4 lakh ​
2	NSO	Internet Services Authorization  (Circle/Metro)	10,000	50,000 (25,000 for North East and Jammu and Kashmir)	20,000

Minimum equity, minimum net worth for authorisations for telecommunication services -

SI.No.	Category	Service Authorisation	Minimum Equity Capital	Minimum Networth
1	Principle Telecommunication Services Authorisation (NSO)	Internet Service Authorisation (National Area) 10 lakh Nil	10 Lakh	Nil
2		Internet Service Authorisation (Telecom circle/ Metro Area)	1 Lakh	Nil

Authorisation Fee

• Annual authorisation fee shall be 8% of Adjusted Gross Revenue (AGR). 

• The fee shall include contribution attributable to Digital Bharat Nidhi. 

• Spectrum related charges shall apply separately wherever applicable. 

Validity

As per Rule 10 of Telecommunications (Authorisation for provision of Principal Telecommunication Services) Rules, 2026, the duration of each authorisation granted under rule 7 shall be such as is specified under the said rule, subject to a maximum of twenty years and the provisions of rules 16, 17 and 81. 

Renewal 

As per sub-rule (3) of Rule 15 of Telecommunications (Authorisation for provision of Principal Telecommunication Services) Rules, 2026, the Central Government may, in its discretion, on receipt of an application under sub-rule (1) or (2), renew the authorisation for such period as decided by the Central Government, subject to a maximum of twenty years. Renewal applications should be submitted at least 12 months before expiry accompanied by processing fee as specified in Schedule A.

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