VNO License: Pros and Cons of Getting it

The Department of Telecommunication issues VNO License to those who want to provide optimum internet services. “Optimum” in the sense that the production cost should low but the quality of services should be high. Thus, many entrepreneurs who want to provide internet services are looking at this unified license with the eyes of eagerness.

Are you one of them?

If you indeed are, you should know all the pros and cons of getting a VNO License.

What is a Virtual Network Operator?

Before discussing the advantages and the drawbacks of the license, let’s first discuss VNO. What is it? It stands for Virtual Network Operator. It’s a service provide internet by:

1. Buying the internet bandwidth from telecom service providers.
2. Using the hardware resources provided by the said service providers to resell that bandwidth to the subscribers.

Who are those telecom service providers? They are the producers of the internet bandwidth. These telecom providers makes the use of ISP or VNO ISP to provide internet services to the general populace.

What is the UL VNO License?

A UL VNO License is the unified license agreement to start a VNO and providing internet service to the subscribers. Unified license meaning is a license that provides internet access in an unified way. It’s issued by the Department of telecommunication upon the payment of VNO License fee and the filing of this License application. The process of filing the application is as follows:

1. Incorporate your VNO company
2. Apply for VNO License: To get the VNO License, online apply is an option that you have.
3. Get the application processed by the DOT
4. Follow the instructions mentioned in the Letter of intent
5. Get the unified license by DOT. You’ll sign a VNO License agreement.

Now that you’ve refreshed upon the basics, let’s discuss the pros.

What are the advantages of VNO License?

Following is a list of advantages you get when you pay the License fee and get the MVNO License:

1. Cost effective: The hardware is issued by the telecom provider. The infrastructure is provided by the telecom provider. Even the network you have to use is provided by other. Needless to say, the cost you’d need to bear is less.
2. Less complex network: If you’re someone who is easily flustered by all the wiring and complex hardware of your ISP, you don’t have to worry if you have a VNO.
3. Less time required to market: As you’re reselling a telecom service provider’s bandwidth, using their hardware, the cost of marketing is reduced.
4. More flexible: It’s a perk of working within a virtual network that you can manipulate the network quite easily.
5. Quick arrangement: Without much hardware requirement, you won’t have much issues if you need to rearrange the network.
6. No risk to you: Even through you’re paying the VNO License cost to get the authorization, you’re using someone else’s telecom resources. Thus, you won’t be at the risk of taking the responsibility of the downtime.
7. Reduced Market Barriers: Providing internet through a virtual network is still a new concept. Thus, when you enter the market, you won’t face much opposition.

These advantages give VNO an edge in the Indian market. However, there are some limitations of starting a VNO that you can’t, and shouldn’t, ignore.

Cons of getting a VNO License

While the low VNO license fee, the increased facility and the lack of responsibility makes starting a VNO a good deal, you have to understand some of its limitations as well. They are as follows:

1. The scope is limited: While getting a C category VNO License in India has it’s perks, people still prefer ISP license for large scale internet operations.
2. Dependency on owners of the infrastructure: While the less responsibility for infrastructure is good, it’s dependency can create an issue. As you’re dependent of telecom industry for infrastructure, your business reputation is tied with that of your telecom service provider.
3. Not much control over internet outages: You are only handling the virtual network of providing the internet, not the infrastructure. Thus, you won’t have much control over the internet outages.
4. You don’t own the network: As a VNO ISP, you’re a reseller who doesn’t own the network.

Should you choose it?

Weighing all the pros and cons, which one should you choose?  When you have a choice between VNO license vs ISP License, the choice has to be an informed one. However, if you still have any queries, contact our experts.