India Govt allows resale of IPLC

NEW DELHI, INDIA: In a bid to promote competition and affordability in International Private Leased Circuits (IPLC) Segment, the Government of India permitted the “resale of IPLC” and introduced a new category of licence – “Resale of IPLC” Service License – with effect from September 24, 2008, said the Department of Telecommunications (DoT) on Wednesday.

The new licence will permit the reseller 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.

The DoT has specified that only Indian companies registered under the Companies Act, 1956, would be permitted to apply for “Resale of IPLC” Service License.

The net worth and paid-up capital of company should be minimum Rs. 2.5 crore. The total foreign equity in the paid-up capital of the company must not exceed 74 per cent.

The entry fee has been fixed at Rs. 1 crore and the annual license fee would be 6 per cent of the Adjusted Gross Revenue (AGR) or Rs. 5 lakh whichever is higher. The applicant should also give an initial financial bank guarantee of Rs 1 crore, the DoT said.