Operating as an Internet Service Provider in India requires navigating regulatory requirements from multiple authorities. Understanding these obligations before they become problems protects your business and customers.
Licensing Categories
The Department of Telecommunications issues ISP licenses in three categories. Category A covers all of India, Category B permits operations within specific telecom circles, and Category C restricts service to a single Secondary Switching Area. License selection should match realistic service area plans—paying for national coverage you won't use wastes capital.
Application requirements include network architecture plans, financial documentation, proof of technical capability, and security clearances for key personnel. Processing typically takes 3-6 months, though delays aren't uncommon.
TRAI Requirements
The Telecom Regulatory Authority of India mandates specific service quality standards. ISPs must maintain network availability above prescribed thresholds, respond to complaints within specified timeframes, and provide transparent billing. Regular quality of service reports demonstrate ongoing compliance.
Tariff plans require TRAI registration before customer communication. This applies to pricing changes, new packages, and promotional offers. The registration process is straightforward but mandatory.
Data Retention and Lawful Interception
Security agencies require ISPs to maintain detailed logs of user activity and provide interception capabilities. Log retention periods span one to two years depending on data type. Infrastructure for lawful interception must be in place before commercial operations begin.
These requirements carry significant technical implications. Budget for logging storage, retention management, and the security measures protecting this sensitive data.
Ongoing Obligations
Compliance isn't a one-time achievement. Annual license fees, quarterly reports, and periodic audits ensure continued adherence. Designate someone responsible for tracking deadlines and maintaining documentation. Missed filings create unnecessary complications with regulators.
Understanding requirements upfront prevents expensive remediation later. Many compliance activities integrate naturally into good operational practices.