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BusinessLegal

NLD License Fee Regulations  For National Long Distance Services

For an applicant trying to get a National Long-Distance service provider license, he or she must comply with the licensing fee regulations put forth by the Department of Telecommunications (DoT). Here we discuss these licensing requirements for the NLD License in this article.

Entry Fee For NLD License

  • The applicant company must pay a one-time non-refundable Entry Fee of Rs 2.5 crores bakırköy escort signing the license in the form of Demand Draft/Pay Order payable at New Delhi in favour of Pay & Accounts Officer (Headquarter), Department of Telecommunications, New Delhi. Read More: RNI Registration Fees
  • The applicant company shall also submit a business plan along with its funding arrangement for financing the project.

Right of Way

  • The applicant company must make arrangements for Right of Way (ROW).
  • The Central Government will issue necessary notification on request bringing the NLDO licensee for placing telegraph lines under the Indian Telegraph Act’1885.
  • The non-availability of the ROW or delay in getting permission/clearance from any agency must not be constr or taken as an excuse.

Net-worth For NLD License

  • The applicant company must have a minimum networth certificate as well as paid-up equity capital of Rs. 2.5 Crores on the date of the application.
  • They must submit the certificate from Company Secretary/Company’s statutory Auditors along with the license application.
  • The networth must be the total, in Indian rupees, of equity capital and free reserves.
  • The networth of promoters must not be count for determining the company’s networth for this purpose.
  • The minimum networth and capital shall be maintain during the currency of the license.

Annual License Fee

  • In addition to the entry fee describe above, the annual license fee, including USO contribution, @ 15% of the Adjusted Gross Revenue (AGR) must be paid.
  • The annual license fee, including USO contribution, must be 6% of the Adjust Gross Revenue. The license fee must be paid in four quarterly installments during each financial year.
  • The quarterly installments of the license fee for the first three quarters of a financial year must be pay by the Licensee within 15 days of the completion of the relevant quarter of the year.
  • The Licensee must pay this fee base on actual revenues ( on an accrual basis) for the quarter duly certified with an affidavit by a representative of the Licensee, authorized by a Board resolution coupled with General Power of Attorney.
  • For the last quarter of the financial year, the Licensee must pay the license fee by 25th March based on expected quarterly revenues, subject to a minimum payment equal to the actual revenue share paid for the previous quarter.
  • For delayed payment beyond the said due dates, a penalty will apply as stipulated in the license for delayed payments.
  • The Licensee must adjust and pay the difference between the payment made and actual amount duly payable ( on an accrual basis) for the last quarter of the Financial year within 15 days of the end of the said quarter.
  • The Licensor must inspect books of accounts of the Licensee and must conduct an independent audit conducted to ascertain the correctness of the license fee paid.

Royalty For NLD License

  • The royalty for the spectrum and possession of wireless telegraphy equipment must be paid separately per the details and prescription of the Wireless Planning & Coordination Wing.
  • The royalty for the user spectrum or possession of wireless telegraphy equipment depends upon various factors such as frequency, hop and link length, area of operation, etc. Read More: alanya escort-in-detail/”>NBFC Registration

Financial Bank Guarantee

  • The applicant company shall submit a Financial Bank Guarantee (FBG) of Rs. Twenty crores one year after signing the licence agreement.
  • An FBG is valid for one year and must be renew from time to time for such amount as may be direct by the Central Government.
  • The dues/fees/royalties for the use of spectrum/possession of Wireless Telegraphy equipment shall be separately securitize by furnishing FBG of equal amount valid for one year renewable from time to time till final clearance of all such dues.

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