Before you launch broadband in India you need an internet service authorisation from the Department of Telecommunications (DoT). Operators always ask what it costs. The honest answer is that the amounts depend on the category and service area, and DoT is moving to new authorisation rules in 2026. This guide explains what you will pay for and how to get the current figure from the source, instead of repeating numbers that may be out of date.
ISP Categories: A, B and C
- Category A: nationwide.
- Category B: statewide (telecom circle).
- Category C: district level (secondary switching area).
Most local cable operators moving into broadband look at Category C, because their network covers a district or part of one.
The Costs You Will Meet
- Processing fee: paid when you apply and not refunded.
- Entry fee: a one-time fee set by DoT for the authorisation.
- Bank guarantees: security you arrange through your bank. They are not a fee, but your bank charges a commission and may ask for collateral.
- Annual licence fee: DoT's Unified Licence page states 8% of Adjusted Gross Revenue (AGR) per authorisation, so it grows with your revenue.
Fee schedules differ by category and service area and get revised. Third-party sites often list older numbers, so confirm on the DoT e-services portal (eservices.dot.gov.in, "Fees and Charges for Services") before you budget.
Costs Outside the Licence
- Fibre, ONUs, OLT and switching equipment, which are usually the largest spend.
- A company registered under the Companies Act, if you do not already have one.
- A chartered accountant who understands AGR, so the annual fee is calculated correctly.
- Billing, complaint and compliance systems from day one.
ISP Authorisation vs LCO Registration
These are separate. The MIB registration for cable TV costs ₹5,000, is valid five years across India and is filed on Broadcast Seva. The DoT authorisation covers internet service and has its own fees and portal. Operators selling both TV and broadband need both. See our guide to LCO registration for the MIB side.
How to Get an Accurate Quote
- Decide your category from the area you will actually serve.
- Open the DoT e-services portal and read the current fee and guarantee schedule for that category.
- Ask your bank what it charges to issue the guarantees.
- Add equipment and compliance costs, then compare with your expected subscriber revenue.
FAQ
How much is the annual ISP licence fee?
DoT states 8% of AGR per authorisation under the Unified Licence.
Which category do local operators need?
Usually Category C (district level), unless the network spans a state or the country.
Can I sell broadband without my own licence?
Some operators resell through a licensed ISP. Check that the arrangement is permitted and what it does to your margin. Selling internet with no authorisation at all is not allowed.
Where are official fees published?
On the DoT e-services portal under Fees and Charges for Services.
After You Are Licensed
Licensing is the start. Billing, collections, complaints and technician dispatch decide whether the business works. LNO360 is built for cable operators and ISPs for that.
