IP1 License: What exactly is infrastructure as a service?

ip1 license

The types of businesses that are available to do are many. But, most of them are getting increasingly complicated. One of them is the infrastructure as a service provider. When you divide the terms, you can guess that it means:

 A business where an entrepreneur provides infrastructure as a service.

However, the explanation about this profession online is very complicated, and so is the requirement  – IP License  – to start it. Thus, through this article, we are going to dive into What exactly is Infrastructure as a service provider in a way that is understandable to anyone.

What is infrastructure as a service?

Think of telecom service providers. They provide you internet connectivity and other telecommunication services with the aid of hardware resources. These resources are base stations, Antennas, Cell towers etc. If you want to go deeper, they also need duct space to manage the wiring and other components of those hardware resources and right of way to make way for the telecom lines. They have to choice to come up with the resources:

  1. Either buy them, or
  2. Rent them.

While buying gives these telecom companies more control, the cost of maintenance alone can mess with their investment’s return.

Thus, most of the renowned telecom service providers tend to reach out to Infrastructure as a service providers. They are companies that rent or lease the resources that we mentioned and at a reasonably price even maintain the equipment’s.

In short, such a company is also known as Infrastructure provider because it provides infrastructure that supports other industry.

Let’s now look into the legal requirement to setup your business whose objective is to provide infra as a service.

What is the IP1 License?

The department of Telecommunication, the body responsible for overseeing everything related to telecom in India, also issues the IP1 License. IP 1 refers to the Type 1 Infrastructure Provider. Type 1 is category that constitutes passive infrastructures like the following:

  1. Right of Way
  2. Cell Tower
  3. Base Stations
  4. Node Stations
  5. Antennas
  6. Duct Space
  7. Wiring

What makes the above resources passive? It’s their non-electrical nature. The above resources, although used to transmit telecom signals from point A to point B, do not run on electricity.

How to apply for the IP1 License?

Like most business licenses, getting IP 1 License also relies on following the conventional steps of application filing, assessment and finally certification. The detailed explanation of that process is as follows:

  1. Become eligible to apply for the IP1 License by first incorporating a private limited company. When that happens, it’s your company that would file the application.
  2. Prepare a file and populate it with the documents that the DOT requires to assess as part of the licensing process: Along with the IP1 License application form, following are the documents you need to insert in a file:
    1. Certificate of incorporation of your newly incorporated company
    2. Memorandum of Association that states that your company is an IP1 company.
    3. Articles of Association
    4. A list that contains the name and information of all the directors and shareholders of the company.
    5. KYC document of each director of the IP 1 Company.
    6. A Demand draft that has the IP1 License fee of INR 5000/-
  3. Remain patient as the Department of telecommunication assess each and every of the aforementioned document.
  4. Once the Department Officials approve of your application, you’ll get the license.

After you obtain the license, you’re on a strict deadline of one month to sign an agreement with a telecom services provider to whom you’d rent or lease the passive infrastructures.

Related Content: ISP License


Vicky Kumar is an Internet service consultant. He specializes in guiding budding and veteran entrepreneurs who seek to start an internet service center. His primary profession is to aid them in getting either ISP or VNO License to legally empower them to start providing internet as a business.

Knowing what an infrastructure provider is a pre-requisite to understanding the IP1 license procedure. Now that you possess a brief knowledge about the profession, would you start the process? Tell us in the comments about it.


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