Document text
UL(VNO) agreement updated up to 31.03.2024 1
UL(VNO) agreement updated up to 31.03.2024 1
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
SANCHAR BHAWAN, 20, ASHOKA ROAD,
NEW DELHI-110 001, INDIA.
LICENSE AGREEMENT
FOR
UNIFIED LICENSE FOR VNO
NO. ____________________________ DATED ________
TOTAL PAGES ___________
UL(VNO) agreement updated up to 31.03.2024 2
LICENSE AGREEMENT
FOR
UNIFIED LICENSE (VNO)
This Agreement is made on the _______ day of ____________ (month),
___________
(year)
between
the
President
of
India
acting
through
__________________ (Name & Designation of the Officer), Department of
Telecommunications (DoT), Sanchar Bhawan, 20, Ashoka Road, New Delhi – 110 001
(hereinafter called the Licensor) of the FIRST PARTY.
AND
M/s __________________, a company registered under the Companies Act
1956/2013, having its registered office at __________________________________
acting through Shri. _______________________, the authorized signatory (hereinafter
called the Licensee which expression shall, unless repugnant to the context, include its
successor in business, administrators, liquidators and assigns or legal representatives)
of the SECOND PARTY.
WHEREAS by virtue of the provisions of Section 4 of the Indian Telegraph Act,
1885, the Licensor enjoys exclusive privilege to grant License for telecom services and
the Licensee has requested the Licensor for grant of Unified License (VNO) {UL (VNO)}
with authorization for providing services under the Schedule of the UL (VNO) in the
service areas as mentioned in the Table below. Whereupon and in pursuance to the said
request, the Licensor has agreed to grant Unified License (VNO) with authorization for
provision of services as per terms and conditions described in the Schedule to the Unified
License (VNO) Agreement, Part-I and Chapters of Part-II for services and service areas
as detailed below:
Sl.
No.
Service
Service Area
Chapter of the PART-II of
Schedule
Whereas, Table shown here in above is subject to amendment for addition/deletion of
services and service areas in the event of grant of any further service authorization or
revocation/ surrender/ termination of any of the service authorized under the license, in
accordance with the terms and conditions contained in the schedule to the License.
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1.
In consideration of the payment of Entry Fee, License Fee and due performance
of all the terms and conditions mentioned in the above stated Parts and Chapters of this
Unified License (VNO) on the part of the Licensee, the Licensor does, hereby grant under
Section 4 of the Indian Telegraph Act, 1885 on a non-exclusive basis, this License to set
up and operate the Service(s) in the service areas detailed and described above.
2.
This License shall be valid for a period of 10 years from the effective date of this
License unless revoked earlier for reasons as specified elsewhere in the document.
Validity period for service(s) authorized under any Chapter of Part-II of this Unified
License (VNO), at a later date, shall be co-terminus with the validity period of this UL
(VNO).
UL(VNO) agreement updated up to 31.03.2024 3
UL(VNO) agreement updated up to 31.03.2024 3
3.
The Licensee hereby agrees and unequivocally undertakes to fully comply with all
terms and conditions stipulated in this License Agreement and without any deviation or
reservations of any kind.
4.
Effective Date of this License shall be ……………….
5.
This Unified License (VNO) has been granted on non-exclusive basis and
additional Licenses may be issued in any Service Area from time to time in future without
any restriction on number of Licensees with same or different entry conditions.
6.
The License shall be governed by the provision of Indian Telegraph Act, 1885,
Indian Wireless Telegraphy Act, 1933 and Telecom Regulatory Authority of India Act,
1997 and Information Technology Act, 2000, as modified or replaced from time to time
or any other relevant Act.
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be
executed through their respective authorized representatives on the _________(day)
__________(month), ______(year).
Signed for and on behalf of Signed on
President of India Behalf of
M/s.______________________
By
By
_____________________
_______________________
(Name and Designation),
(Name and Designation),
DOT, New Delhi
authorized signatory and holder of
General
Power
of
Attorney
dated
_______________,
executed
in
accordance with the Resolution No.
________________,dated __________
passed by the Board of Directors.
(Company Seal)if applicable
In the presence of:
Witnesses:
1. Signature
Name
Occupation
Address
Place.
2. Signature
Name
Occupation
Address
Place.
UL(VNO) agreement updated up to 31.03.2024 4
TABLE OF CONTENTS
Page No.
Schedule
: TERMS AND CONDITIONS
8
PART – I
Chapter I
General Conditions
9
Condition 1:
Ownership of the Licensee Company
9
Condition 2:
Scope of the License
11
Condition 3:
Duration of License
11
Condition 4:
Renewal of License
12
Condition 5:
Modifications in the Terms and
Conditions of License
12
Condition 6:
Restrictions on ‘Transfer of License’
12
Condition 7:
Provision of Service
13
Condition 8:
Delivery of Service
13
Condition 9:
Requirement to furnish information
13
Condition 10: Penalty, Suspension, Surrender,
Termination/Revocation of License
13
Condition 11: Actions pursuant to Termination of License
15
Condition 12: Force-Majeure
15
Condition 13: Set Off
16
Condition 14: Way Leave
16
Condition 15: Dispute Settlement
16
Condition 16: Other Conditions
16
Chapter II
Commercial Conditions
17
Condition 17: Tariffs
17
Chapter III
Financial Conditions
18
Condition 18: Fees payable
18
Condition 19: Definition of ‘Adjusted Gross Revenue’
18
Condition 20: Schedule of payment of Annual
License Fee and other dues
18
Condition 21: Bank Guarantees
20
Condition 22: Preparation of Accounts
20
Chapter IV
Technical Conditions
23
Condition 23: Technical Condition
23
Condition 24: Compliance to Directions/Instructions
23
Condition 25: The Applicable system
24
Condition 26: Engineering Details
24
Condition 27: Interface
25
Condition 28: Quality of Service
25
Chapter V
Operating Conditions
26
Condition 29: Subscriber Registration & Provision of Service
26
Condition 30: The Subscriber Terminals
28
Condition 31: Obligations imposed on the Licensee
28
Condition 32: Sharing of infrastructure
28
Condition 33: Inspection and Testing of Installations
29
Condition 34: Right to inspect
29
Condition 35: Location of Network Elements
29
Condition 36: Confidentiality of information
30
Condition 37: Prohibition of certain Activities by the Licensee
30
Chapter VI
Security Conditions
32
Condition 38: Security Conditions
32
Condition 39: Application of Indian Telegraph Act
39
Chapter VII
Spectrum Allotment and use
40
UL(VNO) agreement updated up to 31.03.2024 5
UL(VNO) agreement updated up to 31.03.2024 5
PART- II
Chapter VIII Access Service
42
Condition 1: Service Area
42
Condition 2: Scope of Access Service
42
Condition 3: Financial Conditions
44
Condition 4: Technical & Operating Conditions
45
Condition 5: Network Interconnection
45
Condition 6: Emergency & Public Utility Service
45
Condition 7: Security Conditions
45
Annexure-A: Proforma for Affidavit regarding Calculation
of ‘Revenue’ and ‘License Fee’
48
Appendix-I to Annexure-A:
Format of Auditor’s Report on
‘Statement of Revenue’ & ‘License Fee’
49
Appendix-II to Annexure-A: Format of ‘Statement of Revenue’ & ‘License Fee’ 50
Annexure-B: Norms for Preparation of Annual Financial
Statement
56
Chapter IX
Internet Service
57
Condition 1: Service Area
57
Condition 2: Scope of Internet Service
57
Condition 3: Financial Conditions
59
Condition 4: Network Interconnection
60
Condition 5: Provision of Service
60
Condition 6: Requirement to furnish information
60
Condition 7: Security Conditions
61
Annexure-A: Proforma for Affidavit regarding Calculation
of ‘Revenue’ and ‘License Fee’
63
Appendix-I to Annexure-A:
Format of Auditor’s Report on
‘Statement of Revenue’ & ‘License Fee’
64
Appendix-II to Annexure-A: Format of ‘Statement of Revenue’ &‘License Fee’
65
Annexure-B: Norms for Preparation of Annual Financial
Statement
69
Chapter X
NLD Service
70
Condition 1: Service Area
70
Condition 2: Scope of NLD Service
70
Condition 3: Financial Conditions
71
Condition 4: Network Interconnection
72
Condition 5: Technical Conditions
72
Annexure-A: Proforma for Affidavit regarding Calculation
of ‘Revenue’ and ‘License Fee’
73
Appendix-I to Annexure-A:
Format of Auditor’s Report on
‘Statement of Revenue’ & ‘License Fee’
74
Appendix-II to Annexure-A: Format of ‘Statement of Revenue’ & ‘License Fee’ 75
Annexure-B: Norms for Preparation of Annual Financial
Statement
77
Chapter XI
ILD Service
78
Condition 1: Service Area
78
Condition 2: Scope of ILD Service
78
Condition 3: Financial Conditions
78
Condition 4: Network Interconnection
79
Annexure-A: Proforma for Affidavit regarding Calculation
of ‘Revenue’ and ‘License Fee’
80
Appendix-I to Annexure-A:
Format of Auditor’s Report on
‘Statement of Revenue’ & ‘License Fee’
81
Appendix-II to Annexure-A: Format of ‘Statement of Revenue’ & ‘License Fee’ 82
Annexure-B: Norms for Preparation of Annual Financial
Statement
84
Chapter XII
GMPCS Service
85
Condition 1: Service Area
85
UL(VNO) agreement updated up to 31.03.2024 6
Condition 2: Scope of GMPCS Service
85
Condition 3: Financial Conditions
85
Condition 4: Technical Conditions
86
Condition 5: Security Conditions
86
Annexure-A: Proforma for Affidavit regarding Calculation
of ‘Revenue’ and ‘License Fee’
87
Appendix-I to Annexure-A:
Format of Auditor’s Report on
‘Statement of Revenue’ & ‘License Fee’
88
Appendix-II to Annexure-A: Format of ‘Statement of Revenue’ & ‘License Fee’ 89
Annexure-B: Norms for Preparation of Annual Financial
Statement
92
Chapter XIII PMRTS Service
93
Condition 1: Service Area
93
Condition 2: Scope of PMRTS Service
93
Condition 3: Financial Conditions
93
Condition 4: Network Interconnection
94
Annexure-A: Proforma for Affidavit regarding Calculation
of ‘Revenue’ and ‘License Fee’
95
Appendix-I to Annexure-A:
Format of Auditor’s Report on
‘Statement of Revenue’ & ‘License Fee’
96
Appendix-II to Annexure-A: Format of ‘Statement of Revenue’ & ‘License Fee’ 97
Annexure-B: Norms for Preparation of Annual Financial
Statement
100
Chapter XIV Commercial VSAT CUG Service
101
Condition 1: Service Area
101
Condition 2: Scope of VSAT CUG Service
101
Condition 3: Financial Conditions
101
Condition 4: Technical Conditions
102
Condition 5: Network Interconnection
103
Condition 6: Security Conditions
103
Annexure-A: Proforma for Affidavit regarding Calculation
of ‘Revenue’ and ‘License Fee’
104
Appendix-I to Annexure-A:
Format of Auditor’s Report on ‘Statement of
Revenue’ & ‘License Fee’
105
Appendix-II to Annexure-A: Format of ‘Statement of Revenue’ & ‘License Fee’ 106
Annexure-B: Norms for Preparation of Annual Financial
Statement
109
Annexure-C: Monthly operation report proforma for
VSAT Network
110
Chapter XV
Resale of IPLC Service
112
Condition 1: Service Area
112
Condition 2: Scope of IPLC Service
112
Condition 3: Financial Conditions
112
Condition 4: Security Conditions
113
Annexure-A: Proforma for Affidavit regarding Calculation
of ‘Revenue’ and ‘License Fee’
115
Appendix-I to Annexure-A: Format of Auditor’s Report on ‘Statement of
Revenue’ & ‘License Fee’
116
Appendix-II to Annexure-A: Format of ‘Statement of Revenue’ & ‘License Fee’ 117
Annexure-B: Norms for Preparation of Annual Financial
Statement
120
Chapter XVI Access Service Category B
121
Condition 1: Service Area
121
Condition 2: Scope of Access Service
121
Condition 3: Financial Conditions
122
Condition 4: Technical & Operating Conditions
122
Condition 5: Network Interconnection
123
Condition 6: Emergency & Public Utility Service
123
Condition 7: Security Conditions
123
UL(VNO) agreement updated up to 31.03.2024 7
UL(VNO) agreement updated up to 31.03.2024 7
Annexure-A: Proforma for Affidavit regarding Calculation
125
of ‘Revenue’ and ‘License Fee’
Appendix-I to Annexure-A: Format of Auditor’s Report on
126
‘Statement of Revenue’ & ‘License Fee’
Appendix-II to Annexure-A: Format of ‘Statement of Revenue’ & ‘License Fee’ 127
Annexure-B: Norms for Preparation of Annual Financial
Statement
129
Chapter XVII Machine to Machine Service (M2M)
131
Condition 1: Service Area
131
Condition 2: Scope of M2M Service
131
Condition 3: Financial Conditions
131
Condition 4: Technical & Operating Conditions
132
Condition 5: Provision of Services
133
Condition 6: Network Interconnection
133
Condition 7: Security Conditions
134
Annexure-A: Proforma for Affidavit regarding Calculation
Of ‘Revenue’ and ‘License Fee’
135
Appendix-I to Annexure-A: Format of Auditor’s Report on
‘Statement of ‘Revenue’& ‘License Fee’
136
Appendix-II to Annexure-A: Format of ‘Statement of Revenue’ &
‘License Fee’
137
Annexure-B : Norms for Preparation of Annual Financial
Statement
140
Annexures to Schedule
Annexure-I
:
Definition of Terms and expressions
141
Annexure-II
:
Details of Minimum Equity, Minimum Networth,
Entry Fee and FBG for various Service
Authorizations
151
Annexure-III
:
Proforma for Financial Bank Guarantee
152
Annexure-IV :
Telecom Service Areas
154
Annexure-V
:
Table Indicating Limits of Penalty Amount
157
Annexure-VI :
List of Secondary Switching Areas
158
Annexure-VII :
List of other income to be excluded from GR to
Arrive at APGR
169
UL(VNO) agreement updated up to 31.03.2024 8
SCHEDULE
TO
THE UL (VNO) AGREEMENT
TERMS AND CONDITIONS
PART- I
[Terms and conditions contained in PART-I shall be applicable for all services provided
under this License, unless specified otherwise in the service specific Chapters in PART-
II.]
UL(VNO) agreement updated up to 31.03.2024 9
UL(VNO) agreement updated up to 31.03.2024 9
CHAPTER-I
GENERAL CONDITIONS
1. Ownership of the Licensee Company:
11.1 FDI upto 100% under automatic route subject to observance of licensing and
security conditions by licensee as well as investors as notified by the DoT from time to
time.
Notwithstanding with the above provision, foreign investment shall be subject to following
conditions:
(i) An entity of a country, which shares land border with India or where the beneficial
owner of an investment into India is situated in or is a citizen of any such country, can
invest only under the Government route.
(ii) In the event of the transfer of ownership of any existing or future FDI in an entity in
India, directly or indirectly, resulting in the beneficial ownership falling within the
restriction/ purview of the clause no. (i) above, such subsequent change in beneficial
ownership will also require Government approval.
(iii) Both direct and indirect foreign investment in the Licensee Company shall be counted
for the purpose of calculating total FDI.
(iv) The licensee Company/ Indian Promoters/ Investment Companies including their
holding companies shall comply relevant provisions of extant FDI policy of the
Government. While approving the investment proposals, the Government may take into
accounts security concerns.
(v) FDI shall be subject to laws of India and not the laws of the foreign country/countries.
The Licensee shall comply with the relevant provisions of FDI policy of the Government
and such modifications to the policy as may be issued from time to time.
(vi)
The words, mentioned hereinabove in Para 1.1, such as FDI, foreign equity,
investment companies, FIPB, etc., shall have the same meaning as defined by
Department for Promotion of Industry and Internal Trade (DPIIT) in its FDI Policy.
21.2
The Licensee shall declare the Indian & Foreign equity structure (both direct and
in-direct) in the Licensee company and submit a compliance report regarding compliance
of FDI norms and security conditions on 1st day of January of every year to the Licensor
in Proforma as may be prescribed from time to time. This is to be certified by Company
Secretary or Statutory Auditor, countersigned by duly authorized Director of the Licensee
Company.
When there is a change in FDI in the Licensee’s company, the Licensee shall also submit
the FDI compliance report within 15 days.
1.3
The Licensee shall also ensure that:
(i)
Any changes in shareholding shall be subject to all applicable statutory
permissions under the Laws of India.
3(ii)
There would not be any restriction on the number of VNO licensees per service
area. VNOs are allowed to have agreements with more than one NSO for all services
other than Access service and such services which need numbering and unique identity
1Amended vide letter no. 20-271/2010 AS-I (Vol.-IV) dated 03.11.2021
2 Amended vide letter no. 20-271/2010 AS-I (Vol.-IV) dated 02.08.2022
3Amended vide letter no 20-562/2017 AS-I dated 02.03.2020
UL(VNO) agreement updated up to 31.03.2024 10
of the customer. For wire line access services through EPABX, the connectivity of
different NSOs shall be governed by the Terms & Conditions of respective service
authorization as mentioned in PART-II of the Schedule to the License Agreement or as
per the directions/ instructions issued by the Licensor from time to time. In UL (VNO) the
provision for restriction of equity cross holding will be applicable between (i) a VNO or its
promoter(s) and another NSO (other than VNO’s parent NSO) or its promoter(s) and (ii)
between a VNO or its promoter(s) & another VNO or its promoter(s), authorised to
provide access service using the access spectrum of NSO(s) in the same service area.
This restriction will not be applicable in case of VNOs parented to the same NSO. It would
not be mandatory for an NSO to provide time bound access to its VNO, rather, it would
be left to the mutual agreement between an NSO and a VNO. However, TRAI/DoT shall
have right to intervene in the matter as and when required to protect the interest of
consumers telecom sector.
1.4
Change in the name of the Licensee Company, as per the provisions of the Indian
Companies Act, 2013, shall have to be intimated to the Licensor in writing along with
certified copy of the name change certificate within 30 days from the date of issue of such
certificate by the Registrar of Companies.
1.5 The Licensee shall have a minimum paid up equity capital equal to the sum of the
Paid up Equity Capital required for each Service opted by the Licensee as per
Annexure-II. The minimum paid up equity capital requirement under this license to
acquire authorization for all the services is Rs. 10 Crore (Rupees Ten Crore only).
41.6 (i) The Licensee shall have a minimum Networth equal to the sum of the Networth
required for each Service opted by the Licensee as per Annexure-II. The combined
minimum Networth under this license for acquiring the authorization for all the services
is Rs. 10 Crore (Rupees Ten Crore only). Networth shall be as defined in the Companies
Act 2013 and as amended from time to time and certified by Company Secretary. In case
of UL(VNO) Category B authorisation, if applicant is a legal entity not covered under
Companies Act, the networth shall be as certified by the Chartered Accountant/ Cost
Accountant. The networth of promoters/ equity holders shall not be counted for
determining the networth of the company. While counting the networth, the foreign
currency shall be converted into Indian Rupees at the prevalent rate indicated by the
Reserve Bank of India as on the date of application received.
51.6 (ii) The Licensee shall declare paid up Capital and submit a compliance report on 1st
day of January of every year to the Licensor in Proforma as may be prescribed from time
to time. This is to be certified by Company Secretary or Statutory Auditor, countersigned
by duly authorized Director of the Licensee Company.
1.7
The Licensee shall maintain the required minimum paid up equity as per
Annexure-II during the currency of license.
1.8
The Licensee shall provide only those services for which authorization has been
granted in the License Agreement even if total amount of Entry Fee paid/payable equals
the maximum limit and combined minimum requirement of Networth and Paid up Equity
Capital for all services are met.
1.9
At the time of obtaining any additional service authorization during the currency of
the License, all the eligibility requirements will have to be met by the Licensee.
4Amended vide letter 20-562/2017 AS-I (Pt) dated 31.08.2018
5 Amended vide letter no. 20-271/2010 AS-I (Vol.-IV) dated 02.08.2022
UL(VNO) agreement updated up to 31.03.2024 11
UL(VNO) agreement updated up to 31.03.2024 11
2. Scope of License:
62.1 This License is granted to provide Service(s) as authorized in the License
Agreement and as per the scope defined in relevant chapter(s) of this License
Agreement, on a non-exclusive basis in the Service Area as applicable. Services can be
provided by Licensee on National Level, Telecom Circle/ Metro Area Level and District
Level in case of VNO Cat ‘B’. 22 Service Areas (Telecom Circle/Metro Areas) are defined
in Annexure-IV. Administration of authorized services shall be at the respective service
area level for all purposes.
Provided further that the Licensor, of its own or through a Designated Entity shall
always have the right to operate the Service anywhere in India including the licensed
area for which this License is granted. The Licensor reserves the right to add additional
chapters to introduce new services.
Names of various service areas and the geographical areas covered under them
are enclosed as Annexure-IV.
2.2(i) The Licensee may establish, operate and maintain Telecommunication Networks
parented to NSO(s) Network and telecommunication services using any technology as
per prescribed standards in the service area as per scope of services authorized under
this License.
(ii)
For providing the Service the Licensee shall utilize, if required, any type of
equipment and product that meet TEC & ITU standards, wherever made mandatory by
the Licensor from time to time. In the absence of mandatory TEC standard, the Licensee
may utilize only those equipment and products which meet the relevant standards set by
International standardization bodies, such as, ETSI, IEEE, ISO, IEC etc.,; or set by
International Fora, such as 3GPP, 3GPP-2, IETF, MEF, WiMAX, Wi-Fi, IPTV, IPv6, etc.
as recognized by TEC and subject to modifications/adaptations, if any, as may be
prescribed by TEC/Licensor from time to time.
(iii)
The Licensee shall not provide any service/ services which require a separate
authorization/license unless specifically provided for in the chapters for services
authorized in this License Agreement.
(iv)
It is obligatory upon the Licensee to provide the services by establishing a state-
of-the-art digital network.
2.3
The mode of ownership of subscribers’ terminal equipment will be at the option of
the subscriber.
2.4
Licensee shall make its own arrangements for all infrastructure involved, if
required, in providing the service and shall be solely responsible for the installation,
networking, operation and commissioning of necessary infrastructure, equipment and
systems, treatment of subscriber complaints, issue of bills to its subscribers, collection of
revenue, attending to claims and damages arising out of its operations etc. However, the
Licensee may share the infrastructure as permitted under the scope of respective service
authorization in PART-II of the Schedule to the License Agreement or as per the
directions/instructions issued by the Licensor from time to time.
3.
Duration of License:
3.1
This License shall be valid for a period of 10 years from the effective date of this
License. The duration of the License of a VNO shall be fixed as 10 years extendable
6Amended vide letter 20-562/2017 AS-I (Pt) dated 31.08.2018
UL(VNO) agreement updated up to 31.03.2024 12
further for 10 years at a time by the licensor unless revoked earlier for reasons as
specified elsewhere in the document. However, depending on technological
developments and experience gathered, this duration of license can be reviewed after 3-
4 years. The agreement of a VNO with a NSO will terminate with the expiry of the license
of either party.
4.
Renewal of License:
4.1
The Licensor may renew, if deemed expedient, the period of License by 10 years
at one time, upon request of the Licensee, if made during the 09th year of the license
period, on the terms specified by the Licensor, subject to extant policy. The decision of
the Licensor shall be final and binding in this regard.
4.2
On renewal, the Licensee may be required to pay a renewal fee as may be notified
by the Licensor.
5.
Modifications in the Terms and Conditions of License:
5.1
The Licensor reserves the right to modify at any time the terms and conditions of
the License, if in the opinion of the Licensor it is necessary or expedient to do so in public
interest or in the interest of the security of the State or for proper conduct of the
Telegraphs. The decision of the Licensor shall be final and binding in this regard.
6.
Restrictions on ‘Transfer of License’:
6.1
The Licensee shall not, without the prior written consent of the Licensor as
described below, either directly or indirectly, assign or transfer this License in any manner
whatsoever to a third party or enter into any agreement for sub-License and/or
partnership relating to any subject matter of the License to any third party either in whole
or in part i.e. no sub-leasing/partnership/third party interest shall be created. For
provision of the service by the Licensee, the Licensee may appoint or employ franchisee,
agents, distributors and employees.
6.2
The Licensor shall have the right to direct the Licensee to warn, penalize or
terminate the services of the franchisee or agent or distributor or employee (servant),
after considering any report of conduct or antecedents detrimental to the security of the
nation. The decision of the Licensor in this regard shall be final and binding and in any
case the Licensee shall bear all liabilities in the matter and keep the Licensor indemnified
for all claims, cost, charges or damages in this respect.
6.3
Mergers and acquisitions as well as transfer of licenses shall be subject to the
guidelines issued on the subject from time to time by the Licensor.
6.4 Further, the Licensee may transfer or assign the License Agreement with prior
written approval of the Licensor, in the following circumstances, and if otherwise, no
compromise in competition occurs in the provisions of Telecom Services:-
(i)
Whenever amalgamation or restructuring i.e. merger or demerger is sanctioned
and approved by the High Court or Tribunal as per the law in force;
(ii)
Prior written consent/No Objection of the Licensor has been obtained for transfer
or merger of Licenses as per applicable guidelines issued from time to time. Further, the
transferee/assignee is fully eligible in accordance with eligibility criteria as applicable for
grant of fresh License in that area and shows its willingness in writing to comply with the
terms and conditions of the License agreement including past and future roll out
obligations as well as to comply with guidelines for transfer/merger of Licenses including
for charges as applicable; and
UL(VNO) agreement updated up to 31.03.2024 13
UL(VNO) agreement updated up to 31.03.2024 13
(iii)
All the past dues are fully paid till the date of transfer/assignment by the transferor
company/entity and transferee company/entity; and thereafter the transferee
company/entity undertakes to pay all future dues inclusive of anything remained unpaid
of the past period by the outgoing company/entity.
7.
Provision of Service:
7.1
The Licensee shall be responsible for, and is authorized to own & install, test and
commission all the Applicable systems parented to NSO(s) for providing the Service
authorized under this License agreement if required. The Licensee shall intimate the
Licensor well in advance before the proposed date of commencement of any service in
any Service Area containing the details of network and required facilities for monitoring
of the service installed by the Licensee. Any service, permitted under the scope of this
License Agreement, shall be commenced by the Licensee only after prior intimation to
the Licensor. The licensee’s Applicable System/Service has to be broadly compliant to
the scope of the License and requisite monitoring facilities are successfully demonstrated
by the Licensee, if equipment capable of monitoring is available with the Licensee
otherwise it shall be the responsibility of parent NSO(s).
8.
Delivery of Service (Service to subscriber):
8.1
The Licensee shall intimate the Licensor and TRAI of Commencement of Service
within 15 days of such commencement. The VNOs are allowed to create their own
service delivery platforms in respect of customer service, billing and VAS.
9.
Requirement to furnish information:
9.1
The Licensee shall furnish to the Licensor/TRAI, on demand in the manner and as
per specified timelines such documents, accounts, estimates, returns, reports or other
information in accordance with the rules/ orders as may be prescribed or as directed from
time to time. The Licensee shall also submit information to TRAI as per any order or
direction or regulation issued from time to time under the provisions of TRAI Act, 1997
as amended from time to time.
10.
Penalty, Suspension, Surrender, Termination/Revocation of License:
10.1(i) The Licensor may impose a financial penalty not exceeding the amount shown in
Annexure-V for each service as per applicable service area per occasion for violation of
terms and conditions of license agreement.
10.1(ii)The Licensor reserves the right to suspend the operation of this License/Service
Authorization in whole or in part, at any time, if, in the opinion of the Licensor, it is
necessary or expedient to do so in public interest or in the interest of the security of the
State or for the proper conduct of the Telegraph. License Fee payable to the Licensor
will not be required to be paid for the period for which the operation of this License
remains suspended in whole. Provided that if situation so warrants, the Licensor may
dispense with the issue of notice prior to such suspension. The decision of the Licensor
shall be final and binding in this regard.
Provided further that the Licensor shall not be responsible for any damage or loss
caused or arisen out of aforesaid action. Provided also that the suspension of the License
shall not be a cause or ground for extension of the period of the License and suspension
period will be taken as period spent.
10.2(i)The Licensor may, without prejudice to any other remedy available for the breach
of any conditions of License, by a written notice to the Licensee at its registered office,
UL(VNO) agreement updated up to 31.03.2024 14
terminate/revoke this License in whole or in part or any of the authorized service(s) under
any of the following circumstances :
If the Licensee:
a)
fails to perform any obligation(s) under the License including timely
payments of fee and other charges due to the Licensor, including
securitization of dues;
b)
fails to rectify, within the time prescribed, any defect/deficiency/correction
in service/equipment as may be pointed out by the Licensor/TRAI.
c)
goes into liquidation or ordered to be wound up.
d)
is recommended by TRAI for revocation of License for non-compliance of
the terms and conditions of the License.
e)
fails to comply with FDI norms.
f)
has furnished information/ certificates for obtaining the license which is
found false at any stage.
For this purpose, the Licensor shall issue a show cause notice of 21 days to the
Licensee. If the Licensor decides to revoke the license, the same will be effective from
the 61st calendar day from the date of issue of such termination/revocation order. The
Licensee shall be required to give a notice of at least 30 Calendar days to its customers
within this period of revocation order.
10.2(ii) In case of suspension or termination/revocation of the License/ authorized
service, the Licensor may also impose a financial penalty not exceeding the amount
shown in Annexure-V for each service per service area for violation of terms and
conditions of license agreement.
10.3 Exit from Service Delivery (Business by a VNO)
10.3(i)In case a VNO wants to exit/surrender its License/Authorisation(s), it shall notify
60 calendar days in advance to the licensor, TRAI and NSO. VNO shall notify 30 calendar
days in advance to its customers.
10.3(ii) For the services other than mobile, all customers of VNO will be migrated to any
of the tariff plan of the parent NSO without any extra charges e.g. upfront/activation
charges. The mobile services customers of the VNO can port their mobile numbers, using
MNP facility, to the service providers of their choice. These provisions shall be built-in as
mandatory provisions in the commercial agreement between the NSO and the VNO.
10.4 The Licensor reserves the right to terminate/revoke/suspend the License or any
authorized service under this License, in whole or in part, at any time in the interest of
public by giving a notice of 60 Calendar days from the date of issue of such notice.
Provided that, in the interest of national security or in the event of national emergency/war
or low intensity conflict or similar type of situations, the Licensor has the right to
revoke/suspend the License or any authorized service under this License, in whole or in
part, without any notice period.
10.5 The Licensor reserves the right to take over the services, equipment and networks
of the Licensee in the interest of national security or in the event of national
emergency/war or low intensity conflict or similar type of situations in full or in part in the
Service area. Further the Licensor reserves the right to keep any area out of the operation
zone of the Service if implications of security so require.
UL(VNO) agreement updated up to 31.03.2024 15
UL(VNO) agreement updated up to 31.03.2024 15
10.6 Breach or non-fulfillment of License conditions may come to the notice of the
Licensor through complaints or as a result of the regular monitoring. Wherever
considered appropriate Licensor may conduct an inquiry either suo-motu or on complaint
to determine whether there has been any breach in compliance of the terms and
conditions of the License by the Licensee. The Licensee shall extend all reasonable
facilities to conduct inquiry.
10.7 It shall be the responsibility of the Licensee to maintain the Quality of Service even
during the period when the notice for surrender/revocation of License is pending and if
the Quality of Service is not maintained, during the said notice period, it shall be liable to
pay damages. The quantum of damages and to whom payable shall be determined by
the TRAI. Further, it shall also be treated as material breach liable for action under Clause
10.1 and 10.2 of the License. The Licensee shall also be liable to pay the License Fee
till the end of the notice period and more specifically till the date on which the
surrender/revocation becomes effective. TRAI will put in place comprehensive
regulations on QoS parameters to be complied with separately by NSOs and VNOs.
11.
Actions pursuant to Revocation of License:
11.1 If under the License Agreement, material event occurs which entitle the Licensor
to revoke the License Agreement, the Licensor shall proceed in accordance with the
terms and conditions provided in the Tripartite Agreement read with the License
agreement wherever such agreement is executed and signed. In cases where no such
Tripartite agreement is signed the action will be taken as per the Condition 11.2 below.
11.2 On revocation or surrender or cancellation of License/Service Authorization(s) due
to reasons whatsoever or expiry of the License, the relevant Bank Guarantee(s) shall be
released to the Licensee only after ensuring clearance of all dues, which the Licensee is
liable to pay to the Licensor. In case of failure of the Licensee to pay the amounts due to
the Licensor, the outstanding amounts shall be realized through encashment of the Bank
Guarantees without prejudice to any other action(s) for recovery of the amounts due to
the Licensor without any further communication to the Licensee.
12.
Force- Majeure:
12.1 If at any time, during the continuance of this License, the performance in whole or
in part, by either party, of any obligation under this is prevented or delayed, by reason of
war, or hostility, acts of the public enemy, civic commotion, sabotage, Act of State or
direction from Statutory Authority, explosion, epidemic, quarantine restriction, strikes and
lockouts (as are not limited to the establishments and facilities of the Licensee), fire,
floods, natural calamities or any act of GOD (hereinafter referred to as EVENT), provided
notice of happenings of any such EVENT is given by the affected party to the other, within
21 Calendar days from the date of occurrence thereof, neither party shall, by reason of
such event, be entitled to revoke this Agreement, nor shall either party have any such
claims for damages against the other, in respect of such non-performance or delay in
performance. Provided Service under the License shall be resumed as soon as
practicable, after such EVENT comes to an end or ceases to exist. The decision of the
Licensor as to whether the service may be so resumed (and the time frame within which
the service may be resumed) or not, shall be final and binding.
12.2 However, the Force Majeure events noted above will not in any way cause
extension in the period of the License.
12.3 While it will normally not be a ground for non-payment of License Fee, the liability
for payment of License fee for such inoperative period(s) due to force majeure clause
UL(VNO) agreement updated up to 31.03.2024 16
may, however, be reduced/ waived by the Licensor, at its discretion based on
circumstances of the EVENT.
13.
SET OFF:
13.1 In the event any sum of money or claim becomes recoverable from or payable by
Licensee to the Licensor either against this License Agreement or otherwise in any
manner, such money or claim can be (without restricting any right of set off for counter
claim given or employed by law) deducted or adjusted against any amount or sum of
money then due or which at any time thereafter may become due to the Licensee under
this License Agreement or any other agreement or contract between the Licensor and
the Licensee.
13.2 The aforesaid sum of money payable to the Licensee shall include any security/
bank guarantee which can be converted into money.
13.3 After exercising the right of set off, the Licensor shall inform the Licensee of the
action taken.
14.
Way Leave:
14.1 The Licensee shall make, if required, its own arrangements for Right of Way
(ROW). In exercise of the provisions of the Section 19 B of the Indian Telegraph Act,
1885, the Central Government, vide Notification dated 24.5.1999, has conferred the
powers upon the duly authorized Licensee(s), licensed under Section 4 of the said Act,
to seek way-leave from any person including public authority, in connection with providing
the services, as per details mentioned in the said Notification. However, non-availability
of the ROW or delay in getting permission/ clearance from any agency shall not be
construed or taken as a reason for non-fulfillment of the Roll-out obligations, if any and
shall not be taken as a valid excuse for not carrying any obligations imposed by the terms
of this License or conditions of spectrum allotment.
15.
Dispute Settlement:
15.1 All disputes relating to this License will be subject to jurisdiction of Telecom
Disputes Settlement and Appellate Tribunal (TDSAT) as per provisions of TRAI Act, 1997
as amended from time to time. Dispute in any matter outside the domain of TDSAT will
lie in the jurisdiction of competent Courts in NCT of Delhi only.
16.
Other Conditions:
16.1 The Licensee shall be bound by the terms and conditions of this License
Agreement as well as instructions as are issued by the Licensor and by such
orders/directions/regulations of TRAI as per provisions of the TRAI Act, 1997 as
amended from time to time.
16.2 The Licensee shall also be bound by the prevailing instructions/ directions/ orders
issued in respect of a service by the Licensor/ TRAI, if the same service is also being
provided by the Licensee to its subscribers.
16.3 The statutory provisions and the rules made under Indian Telegraph Act, 1885 or
Indian Wireless Telegraphy Act, 1933 or Information Technology Act, 2000 or TRAI Act,
1997 and the rules and regulations there under shall govern the provision of service
under this license agreement. Any order passed under these statutes shall be binding on
the licensee.
UL(VNO) agreement updated up to 31.03.2024 17
UL(VNO) agreement updated up to 31.03.2024 17
CHAPTER-II
COMMERCIAL CONDITIONS
17.
Tariffs:
17.1 The Licensee will charge the tariffs for the Service as per the Tariff orders/
regulations/ directions/decisions issued by TRAI from time to time. The Licensee shall
also fulfill requirements regarding publication of tariffs, notifications and provision of
information as directed by TRAI through its orders/ regulations/ directions issued from
time to time as per the provisions of TRAI Act, 1997 as amended from time to time.
UL(VNO) agreement updated up to 31.03.2024 18
CHAPTER-III
FINANCIAL CONDITIONS
18.
FEES PAID/PAYABLE:
18.1 Entry Fee:
18.1.1 A one-time non-refundable Entry Fee for each authorized Service shall be paid
as per Annexure-II. The total amount of Entry fee shall be the cumulative Entry Fee of
each authorization subject to a maximum of Rs. 7.5 Crore (Rupees Seven crores and
fifty lakh only).
18.2 License Fee:
18.2.1 In addition to the Entry Fee, an annual License fee & Spectrum Usage charges
(SUC) as a percentage of Adjusted Gross Revenue (AGR) shall be paid by the Licensee
service-area wise, for each authorized service separately as per the procedure
prescribed in applicable chapter of UL (VNO) from the effective date of the respective
authorization. The License Fee is at present 8% of AGR, inclusive of USO levy, which is
presently 5% of AGR. SUC shall be applicable as per rates applicable for NSO and can
be amended from time to time.
Provided that from Second Year of the effective date of respective authorization,
the License fee shall be subject to a minimum of 10% of the Entry Fee of the respective
authorized service and service area as in Annexure-II. Further, if the licensee has been
granted UL(VNO-All services), minimum license fee shall be calculated separately on the
entry fee of each authorized service and service area separately in the concerned offices
of the controllers of communication accounts (CCAs). Moreover, from the second year of
the effective date of respective authorization, the license fee shall be either the license
fee based on the actual AGR or the license fee of minimum of 10% of the Entry Fee of
the respective authorized service and service area as in Annexure-II, whichever is
higher.
719.
Definition of Gross Revenue, Applicable Gross Revenue (ApGR) and
Adjusted Gross Revenue (AGR):
19.1 The Gross Revenue, Applicable Gross Revenue (ApGR) and Adjusted Gross
Revenue (AGR) for the purpose of calculation of License fee for different services
authorized under this license are defined in the respective chapters of the Service in
PART-II of this License Agreement.
20.
Schedule of payment of ANNUAL LICENSE FEE, SPECTRUM USAGE
CHARGES and other dues:
20.1 License Fee shall be payable in four quarterly installments during each financial
year (FY) commencing 1st of April.
20.2 The quarter in which the effective date of license/authorization falls, shall end on
the usual end date of that quarter for the purpose of license fee. The quarters where the
7 Amended vide letter no.20-271/2010 AS-I (Vol.-V) Dated: 25.10.2021
UL(VNO) agreement updated up to 31.03.2024 19
UL(VNO) agreement updated up to 31.03.2024 19
minimum license fee becomes applicable and the last quarter of the license period, may
not be of full three months, but of part period only.
[Explanation:
(i)
For license/authorization with effective date on 13th July, the quarter will
end on 30th September.
(ii)
In such case the minimum license fee would become applicable w.e.f. 13th
of July next year and the quarter shall end in the following 30th September.
20.3 License Fee shall be payable in four quarterly installments during each financial
year (FY). Quarterly installment of license fee for the first three quarters of a financial
year shall be paid within 15 days of the completion of the relevant quarter. The AGR
based license Fee shall be paid by the Licensee on the basis of revenue on accrual basis
for the quarter, duly certified with an affidavit by a representative of the Licensee who is
authorized by the Board Resolution coupled with General Power of Attorney. However,
for the last quarter of the financial year, the Licensee shall pay the License Fee by 25th
March on the basis of expected revenue for the quarter, subject to a minimum payment
equal to the revenue share paid for the previous quarter.
20.4 The Licensee shall adjust and pay the difference between the advance payment
made and actual amount duly payable for the last quarter of financial year within 15 days
of the end of the quarter. However, in case of over-payment recorded on account of the
licensee, the same may be adjusted in the 1st quarter of next financial year.
20.5 The quarterly payment shall be made with an affidavit as at Annexure-A of the
respective Chapter of service authorization together with a STATEMENT OF REVENUE
SHARE AND LICENSE FEE separately for each service and service area in the Proforma
prescribed at Appendix-II to Annexure-A of the respective chapter of the service,
showing the computation of revenue and License fee payable. The aforesaid quarterly
STATEMENTS of each year shall be required to be audited by the Auditors (hereinafter
called Licensee’s Auditors) appointed by the Licensee under the Companies’ Act, 2013.
The report of the Auditor should be in the prescribed form as per Appendix-I to
Annexure-A of the respective Chapter of service authorization.
820.6 Any delay in payment of License Fee or any other dues payable under the License,
beyond the stipulated period will attract interest at a rate which will be 2% above the one
year Marginal Cost of Lending Rate (MCLR) of State Bank of India existing as on the
beginning of the Financial Year (namely 1st April) in respect of the license fees or any
other dues pertaining to the said Financial Year. The interest shall be compounded
annually. A part of the month shall be reckoned as a full month for the purpose of
calculation of interest. A month shall be reckoned as an English calendar month.
20.7 For the first three quarters, the cutoff date for the delay would be the due date of
the payment, i.e., after the 15 days of completion of relevant quarter. However, for the
purpose of difference between advance payment made and actual amount due for the
last quarter of the financial year, the due date would be 16th April.
920.8 Final adjustment of the License fee for the year shall be made on or before 30th
June of the following year. Based on the gross revenue figures, the minimum License
Fee shall be submitted by the Licensee, duly certified by the AUDITORS of the Licensee
in accordance with the provision of the Companies’ Act, 2013.
8Amended vide letter no. 20-271/2010 AS-I (Vol.-IV) dated 01.10.2021
9Amended vide letter no20.271/2010 AS-I (Vol.-IV) dated 01.10.2021
UL(VNO) agreement updated up to 31.03.2024 20
20.9 A reconciliation between the figures appearing in the quarterly statements
submitted in terms of the Condition 20.5 of the License Agreement with those appearing
in annual accounts shall be submitted along with a copy of the published annual accounts
audit report and duly audited quarterly statements within 7 (seven) Calendar days of the
date of signing of the audit report. The annual financial account and the statement as
prescribed above shall be prepared following the norms as prescribed in Annexure-B of
the respective Chapter of service authorizations. The statements and accounts submitted
shall be assessed and verified by the Licensor and through its units namely Offices of
Controller of Communication Accounts in respective service areas.
20.10 All sums becoming due and payable as mentioned in this License Agreement shall
be paid by the Licensee, service and service area wise, through e-transfers.
21.
BANK GUARANTEES:
21.1 Performance Bank Guarantee:
As Licensees would not be forced to create infrastructure therefore no roll out
obligations may be casted upon Licensees. Therefore, no PBG is prescribed for VNOs.
1021.2 Financial Bank Guarantee:
The Licensee shall submit Financial Bank Guarantee (FBG) separately for each
service and service area as per Annexure-II, initially before signing the License
Agreement or subsequent authorization of service(s), as the case may be, valid for one
year, from any Scheduled Bank or Public Financial Institution duly authorized to issue
such Bank Guarantee, in the prescribed Proforma at Annexure-III of this license
agreement. Subsequently, the amount of FBG shall be equivalent to 20% of the
estimated sum payable (of License fee for two quarters and other dues not otherwise
securitized). The amount of FBG shall be subject to periodic review on six
monthly basis by the Licensor, i.e. CCAs/ DoT and shall be renewed from time to time.
Initially, the Bank Guarantee (FBG) shall be valid for a period of one year and shall be
renewed from time to time. The Licensee, on its own, shall extend the validity period of
the Bank Guarantees at least one month prior to date of its expiry without any demand
or notice from the Licensor on year to year basis. Any failure to do so, shall amount to
violation of the terms of the License and entitle the Licensor to encash the Bank
Guarantees and to convert into a cash security without any reference to the Licensee at
his risk and cost. No interest or compensation whatsoever shall be paid/ payable by the
Licensor on such encashment.
21.3 Where the Bank Guarantees have been encashed partially, the licensee on such
occasions, shall restore the encashed guarantees to the full amount. Any failure to do so
shall amount to violation of the terms and conditions of the license.
21.4 Without prejudice to its rights of any other remedy, Licensor may encash Bank
Guarantee (FBG) in case of any breach in terms & conditions of the License by the
Licensee.
22.
Preparation of Accounts:
22.1 The Licensee will draw, keep and furnish independent accounts for each service
and service area and shall fully comply with any order, direction or regulation as may be
10Amended vide letter no20.271/2010 AS-I (Vol.-IV) dated 06.10.2021
UL(VNO) agreement updated up to 31.03.2024 21
UL(VNO) agreement updated up to 31.03.2024 21
issued by TRAI and rules/instructions/directions as are issued by the Licensor from time
to time.
22.2 The Licensee shall be obliged, in respect of each authorized service and service
area separately, to:
a)
Compile and maintain accounting records, sufficient to show and explain
its transactions in respect of each completed quarter of the License period or of
such lesser periods as the Licensor may specify, fairly presenting the costs
(including capital costs), revenue and financial position of the Licensee’s business
under the License including a reasonable assessment of the assets employed in
and the liabilities attributable to the Licensee’s business, as well as, for the
quantification of Revenue or any other purpose.
(b)
Procure in respect of each of those accounting statements prepared in
respect of a completed financial year, a report by the Licensee’s Auditor in the
format prescribed by the Licensor, stating inter-alia whether in his opinion the
statement is adequate for the purpose of this condition and thereafter deliver to
the Licensor a copy of each of the accounting statements not later than three
months at the end of the accounting period to which they relate.
c)
Send to the CCAs/DoT certified statement sworn on an affidavit, by
authorized representative of the licensee, containing full account of Revenue as
defined in condition 19 for each quarter separately along with the payment for the
quarter.
d)
Furnish to the Licensor full detail of inter-operator settlement of accounts
e.g. pass through charges, usage of network and facilities, domestic and
international roaming including details of the settlement regime through
accounting rate or any other mechanism, etc. All bilateral settlements including
those between the ILD service provider and other foreign partners (carriers) shall
be through normal banking channel in a transparent manner.
22.3 (a) The Licensor, i.e., CCAs/DoT or the TRAI, as the case may be, shall have a right
to call for and the Licensee shall be obliged to supply and provide for examination any
books of accounts that the Licensee may maintain in respect of the business carried on
to provide the service(s) under this License at any time without recording any reasons
thereof.
22.3(b) Licensee shall invariably preserve all billing and all other accounting records
(electronic as well as hard copy) for a period of three years from the date of publishing of
duly audited & approved Accounts of the company/entity and any dereliction thereof shall
be treated as a material breach independent of any other breach, sufficient to give a
cause for cancellation of the License.
22.4 The records of the Licensee will be subject to such scrutiny as may be prescribed
by the Licensor so as to facilitate independent verification of the amount due to the
Licensor as its share of the revenue.
22.5 CCAs/DoT may, on forming an opinion that the statements or accounts submitted
are inaccurate or misleading, order Audit of the accounts of the Licensee by appointing
Auditor at the cost of the Licensee and such auditor(s) shall have the same powers which
the statutory auditors of the company/entity enjoy under Section 227 of the Companies
Act, 1956. The remuneration of the Auditors, as fixed by the Licensor, shall be borne by
the Licensee.
UL(VNO) agreement updated up to 31.03.2024 22
22.6 The CCAs/DoT may also get conducted a ‘Special Audit’ of the Licensee’s
accounts/records by “Special Auditors”, the payment for which at a rate as fixed by the
Licensor, shall be borne by the Licensee. This will be in the nature of auditing the audit
described in para 22.5 above. The Special Auditors shall also be provided the same
facility and have the same powers as of the companies’ auditors as envisaged in the
Companies Act, 1956.
22.7 The Licensee shall be liable to prepare and furnish the company’s/entity’s annual
financial accounts according to the accounting norms and principles prescribed and the
directions given by the Licensor or the TRAI, as the case may be, from time to time.
22.8 The CCAs/DoT to ensure proper and correct assessment, verification and
settlement of revenue share paid, can, if deemed necessary, add, modify, alter, substitute
and amend whatever stated in this Chapter, namely Chapter-III of this license. The
licensee shall comply with the instructions/directions issued in this regard from time to
time.
UL(VNO) agreement updated up to 31.03.2024 23
UL(VNO) agreement updated up to 31.03.2024 23
CHAPTER-IV
TECHNICAL CONDITIONS
23.
TECHNICAL CONDITIONS:
1123.1 The Licensee is permitted to set up their own network equipment viz. BTS, BSC,
MSC, RSU, DSLAMs, LAN switches, if required, where there is no requirement of
interconnection with other NSO(s). The VNO shall not be allowed to own/ install
equipment viz. GMSCs, Soft-switches and TAX. Equipment permitted to be owned
/installed by VNOs shall conform to the technical standards prescribed by standardization
bodies like TEC and ITU. However in case of Access Services Category B only wireline
equipments are allowed to be installed.
23.2 The LICENSEE shall provide the details of the technology, if required, proposed
to be deployed for operation of the service, to the Licensor. In the absence of mandatory
TEC & ITU standard, the Licensee may utilize only those equipment and products which
meet the relevant standards set by International standardization bodies, such as, ETSI,
IEEE, ISO, IEC etc.; or set by International Fora, such as 3GPP, 3GPP-2, IETF, MEF,
WiMAX, Wi-Fi, IPTV, IPv6, etc. as recognized by TEC and subject to
modifications/adaptation, if any, as may be prescribed by TEC from to time. Network
equipment comprising of wireless equipment viz. BTS, BSC, E-Node etc. if set up by
VNO shall be under Wireless Operating License (WOL) issued to Network Service
Operator (NSO) as VNO is not holding any spectrum and no separate WOL is to be
issued.
23.3 Requisite monitoring/interception facilities/equipment for each type of service,
shall be provided by the Licensee at its own cost for monitoring as per the requirement
specified by the Licensor from time to time if it owns the equipment capable of
Interception/monitoring.
1223.4 The LICENSEE shall adhere to the National Fundamental Plans like National
Numbering Plan, Signaling Plan, Routing Plan, National Frequency Allocation Plan and
any other plan, as applicable to the respective service authorization, issued by
Department of Telecommunications and technical standards as prescribed by Licensor
from time to time. An NSO shall allocate a numbering range to their VNO(s) from the
numbering range allocated to it by the licensor. VNOs shall utilise the network codes of
the parent NSO, however LRNs can be issued to the VNOs by DoT for the purpose of
routing of calls.
23.5 The Licensor reserves the right to modify any of the National Fundamental Plans.
24.
Compliance to Directions/ Instructions:
24.1 Norms on Electromagnetic Field exposure by BTS (Base Stations)
In case the Licensee installs BTS for providing the service, if permitted under the scope
of the service authorization, the Licensee shall conduct audit and provide self certificate,
at prescribed interval and as per procedure prescribed by Telecommunication
Engineering Centre (TEC)/ or any other agency authorized by Licensor from time to time
for conforming to limits/ levels for antenna (Base Station Radiation Emissions) for general
11Amended vide letter 20-562/2017 AS-I (Pt) dated 31.08.2018
12Amended vide letter no. 20-271/2010 AS-I (Vol-III) dated 20.11.2019
UL(VNO) agreement updated up to 31.03.2024 24
public exposure as prescribed by Licensor from time to time. The present limits/ levels
are reproduced below:
Frequency Range
E-field strength
(volt/meter (V/m))
H-field
strength(Amp/meter
(A/m))
Power density
(Watt/Sq. meter
(W/Sqm))
400MHZ to 2000
MHZ
0.434 f1/2
0.0011 f1/2
f/2000
2GHZ to 300 GHZ
19.29
0.05
1
(f is frequency in MHz)
Self Certification shall be submitted to respective Telecom Enforcement, Resource &
Monitoring (TERM) Cells of Licensor. The LICENSEE shall comply with the instructions/
directions/ guidelines issued by Licensor on EMF exposure norms from time to time.
24.2 The Licensee shall adopt Renewable Energy Technologies (RETs) for powering
the Telecom Network, deploy energy efficient equipment and reduce the carbon footprint
as per prevailing directions/ instructions and shall abide by further directions/ instructions
as may be issued in this regard by Licensor/ TRAI from time to time.
24.3 The licensee shall adhere to the prevailing directions/ instructions and shall also
abide by further directions/ instructions as may be issued by LICENSOR from time to
time in respect of
(a) Preferential Market Access for procurement of indigenous manufactured products,
(b) Mandatory testing of equipment and
(c) Requirements on IPv6 implementation.
25.
The Applicable System:
25.1 In the process of operating the Services, the Licensee shall be responsible for:-
(i)
The installation of the systems excluding the installation of the equipment
at the subscriber’s premises which will be left at the option of the subscriber;
(ii)
the proper upkeep and maintenance of the equipment;
(iii)
maintaining the criteria of performance;
(iv)
maintaining the Quality of Service as per clause 28.
26.
Engineering Details:
(a)
The Licensee shall furnish to the Licensor or its authorized representative(s), in
such manner and at such times as may be required, complete technical details
with all calculations for engineering, planning and dimensioning of the
system/network if equipment is installed by Licensee, concerned relevant
literature, drawings and installation materials regarding the applicable system.
(b)
Licensee shall supply all tools, test instruments and other accessories to the
testing party of Licensor and/or TEC for conducting tests at any time during the
currency of the License.
UL(VNO) agreement updated up to 31.03.2024 25
UL(VNO) agreement updated up to 31.03.2024 25
27.
Interface:
27.1 The Licensee shall operate and maintain the licensed Network conforming to
Quality of Service standards to be mutually agreed with NSO in respect of Network-
Network Interface subject to such other directions as Licensor or TRAI may give from
time to time. Failure on the part of Licensee to adhere to the network to network interface
standards of TEC is liable to be treated as breach of LICENSE terms and conditions. For
the purpose of providing the Service, the Licensee shall install his own equipment, if
required, so as to be compatible with NSO’s equipment to which the Licensee's
Applicable Systems are to be connected. The Licensee shall be solely responsible for
attending to any claims and damages arising out of his operations.
27.2 The network resources including the cost of upgrading/ modifying interconnecting
networks to meet the service requirements of the LICENSEE will be mutually negotiated
with NSO keeping in view the orders and regulations issued by the TRAI from time to
time.
1327.3 The technical parameters mentioned in the relevant Interface Requirement for
VSAT Network(s) issued by TEC, as modified from time to time, are to be complied with.
28.
Quality of Service:
28.1 Since QoS is in the exclusive domain of TRAI, therefore, TRAI will put in place
comprehensive regulations on QoS parameters to be complied with separately by NSOs
and Licensees.
28.2 Disaster/Emergency/Public Utility Services:
The Licensee shall follow the guidelines/directions/ standard operating procedures
as may be prescribed for the disaster management/emergency response services or any
other instruction issued by Licensor in this regard from time to time.
The Licensee shall also facilitate the priority routing of emergency/public utility or
any other type of user calls as per guidelines/directions as may be prescribed by Licensor
if network infrastructure equipment is installed by Licensee.
13Amended vide letter no.20-271/2010 AS-I (Vol.-III) dated 23.09.2021
UL(VNO) agreement updated up to 31.03.2024 26
CHAPTER-V
OPERATING CONDITIONS
29.
Subscriber Registration and Provision of Service:
29.1 The LICENSEE shall register demand/request for telephone connection and or
any other Telecom Service without any discrimination from any applicant, at any place in
the service area for the service(s) authorized and provide the Service, unless otherwise
directed by the Licensor. The LICENSEE shall not in any manner discriminate between
subscribers and provide service on the same commercial principle and shall be required
to maintain a transparent, open to inspection, waiting list. The LICENSEE shall clearly
define the scope of Service to the Subscriber(s) at the time of entering into contract with
such Subscriber(s). Licensor shall have right to impose suitable penalty, not limited to a
financial penalty, apart from any other actions for breach of this condition. The LICENSEE
shall commence the Service on commercial basis only after starting subscriber
registration in the manner prescribed. Before commencement of Service in an area, the
LICENSEE shall notify and publicize the address where any subscriber can register
demand/request for Telecom Service. Any change of this address shall be duly notified
by the Licensee.
Provided that nothing contained herein will affect or prejudice the rights of the
LICENSEE to carry out check on credit worthiness of applicants for its services.
29.2 VNOs shall also be allowed to create their own service delivery platforms in
respect of customer service, billing and VAS. The LICENSEE shall widely publicize
provision of service and shall not refuse registration of demand in the service areas in
which the Licensee has commenced services. In case the provision of telephone
connection or the requested telecom service to an applicant is not feasible for technical
or other reasons beyond the control of Licensee, then the LICENSEE shall endeavor to
make arrangement for providing connections/Service in such cases within a reasonable
time. By suitable man/ machine command to be given by the operation and maintenance
personnel, it should be possible to deny service to subscribers in certain specified areas
immediately on receipt of request.
29.3(a) The LICENSEE shall ensure continuity of services to its customers unless
LICENSE is Revoked or Suspended by the Licensor for any reason whatsoever.
1429.3(b) Licensee may discontinue any of the service, under a Service Authorization to
its subscribers, by giving notice to Licensor and TRAI of at least 60 Calendar days in
advance with reasons. In that case it shall also notify all its subscriber by sending a 30
Calendar days notice to each of them, clearly stating the options available to subscribers
including that of MNP also. The effective date of discontinuity of Service will be 61st
Calendar days counted from the date of receipt of such notice by the Licensor. The
Licensor reserves the right to reject such request only when warranted in the interest of
public or national security or in the event of national emergency/war.
The discontinuation of service may be due to change of technology. In that case the
above condition shall also apply.
29.4 It shall be the responsibility of the LICENSEE to issue or cause to be issued bills
to its subscribers for use of the service. The LICENSEE shall maintain such records so
as to produce itemized billing information. The billing system of the LICENSEE shall be
able to generate the billing information, in adequate details, to ensure satisfaction of the
14Amended vide letter no. 20-559/2017 AS-I (Pt) dated 24.01.2019
UL(VNO) agreement updated up to 31.03.2024 27
UL(VNO) agreement updated up to 31.03.2024 27
subscribers about the genuineness of the bill. The directions of TRAI, from time to time,
in this regard shall apply.
29.5 The LICENSEE shall offer a regular itemised billing to its subscribers wherever
applicable. In every case the LICENSEE shall be responsible to its subscribers and shall
ensure fulfillment of the obligations in this regard. The LICENSEE shall also maintain
necessary records for the billing cycles as specified by the Licensor or TRAI from time to
time.
29.6 All complaints of subscribers in this regard will be addressed/ handled as per the
orders or regulations or directions issued by the Licensor or TRAI from time to time.
29.7 Determination of TRAI with regard to publication of telephone service directory
containing information of subscribers of Telecom Service shall be applicable and binding.
29.8 The Licensee’s contractual obligations to various Licensees and Other Service
Providers (OSPs) not requiring License under Section 4 of Indian Telegraph Act, 1885
will include terms and conditions under which the Service may be obtained, utilized and
terminated. However, the Licensee while providing the resources to other Licensees/
OSPs shall satisfy itself that such Licensees/OSPs are eligible to obtain that resource.
29.9 The LICENSEE shall notify in writing all the policy and arrangements with respect
to repair, fault rectification, compensation or refunds. All complaints in this regard will be
addressed/ handled as per the guidelines, order or regulation or direction issued by the
Licensor or TRAI from time to time.
29.10 Any dispute, with regard to the provision of Service shall be a matter only between
the aggrieved party and the Licensee, who shall duly notify this to all before providing the
Service. And in no case, the Licensor shall bear any liability or responsibility in the matter.
The LICENSEE shall keep the Licensor indemnified for all claims, cost, charges or
damages in the matter.
29.11 In case of provision of services by the LICENSEE through the Satellite media or
use of satellite media through owned/leased satellite connectivity: -
(i) The Licensee shall abide by the prevalent Government guidelines, policies, orders,
regulations or directions on the subject like Satellite communication policy, VSAT policy,
etc.
(ii) Before putting in operation the network, if required, for Satellite based services,
necessary clearances from INSAT Network Operations Control Center (NOCC) on
payment of prescribed charges will be taken by the Licensee. NOCC instructions with
regard to space segment access and other relevant operational matters will have to be
complied with by the Licensee.
(iii) For use of space segment and setting up and to start operating the Earth Station etc.,
if owned by the Licensee, Licensee shall directly coordinate with and obtain clearance
from Network Operations Control Centre (NOCC), apart from obtaining SACFA clearance
and clearance from other authorities.
(iv)Mandatory performance verification of HUB Station will be carried out by NOCC or
any other agency authorized by the Authority for this purpose on payment of necessary
testing charges by Licensee.
(v) For VSATs supplied or leased by the Licensee, a certificate from the LICENSEE duly
supported by the manufacturer certificate meeting the mandatory performance
requirements shall be submitted by the LICENSEE to NOCC. Mandatory performance
UL(VNO) agreement updated up to 31.03.2024 28
verification of VSATs will be carried out by NOCC on selective basis on payment of
necessary testing charges by Licensee.
(vi)The Licensee shall submit a monthly operational report to NOCC/Satellite cell in DoT
in both soft copy and hard copy.
30.
The Subscriber Terminals:
30.1 The Licensee shall have the right to undertake the sale, hire purchase, lease or
renting of the subscriber fixed/ mobile terminals/ Customer Premises Equipment (CPE).
Proper usage of terminal at subscriber's premises shall be as per agreement between
the Licensee and subscriber.
30.2 The Licensee shall be responsible to ensure that the subscriber terminal, if
required by the licensee, is operated in accordance with the terms and conditions of the
License, the Wireless Operating License where applicable and relevant instructions/rules
issued by Licensor/TRAI. The Subscriber Identification Module (SIM) or equivalent
device for the purpose used in the subscriber terminal is non-transferable to other
subscriber.
30.3 The subscriber terminals/CPE, if deployed by Licensee, in the network shall meet
TEC standards, wherever specified as mandatory by the Licensor from time to time and
in the absence of mandatory TEC standard, the Licensee may deploy subscriber
terminals that is certified to meet the relevant standards set by International
standardization bodies, such as, ITU, ETSI, IEEE, ISO, IEC, etc. or International Fora,
viz., 3GPP, 3GPP-2, IETF, MEF, WiMAX, Wi-Fi, IPTV, IPv6, etc. as recognized by TEC
and subject to modifications/adaptations, if any, as may be prescribed by TEC from to
time. Only such category of subscriber unit as has been granted such a certificate shall
be brought into and operated within India under this Agreement.
30.4 Subscriber shall be given option to obtain the Subscriber Terminal from any source
subject to clause 30.3 above.
31.
Obligations imposed on the Licensee:
31.1 The provisions of the Indian Telegraph Act 1885, the Indian Wireless Telegraphy
Act 1933, and the Telecom Regulatory Authority of India Act, 1997, Information
Technology Act, 2000 as amended from time to time or any other relevant Act shall
govern this License.
31.2 The Licensee shall furnish all necessary means and facilities as required for the
application of provisions of Section 5(2) of the Indian Telegraph Act, 1885, whenever
occasion so demands. Nothing provided and contained anywhere in this License
Agreement shall be deemed to affect adversely anything provided or laid under the
provisions of Indian Telegraph Act, 1885 or any other law on the subject in force.
32.
Sharing of infrastructure:
32.1 The terms and conditions of sharing of infrastructure between the NSO(s) and
VNO shall be left to the market i.e. on the basis of mutually accepted terms and conditions
between the NSO(s) and the VNO.
32.2 Sharing of Active infrastructure amongst Service Providers based on the mutual
agreements entered amongst them is permitted. Active infrastructure sharing will be
limited to antenna, feeder cable, Node B, Radio Access Network (RAN) and transmission
system only.
UL(VNO) agreement updated up to 31.03.2024 29
UL(VNO) agreement updated up to 31.03.2024 29
1532.3 The Licensee may share its own active and passive infrastructure for providing
other services authorized to it under any other telecom license issued by Licensor.
32.4 An authorized Gateway hub operated by the satellite provider itself is permitted to
be shared with the satellite bandwidth seeker.
33.
Inspection and Testing of Installations:
33.1 The Licensor/ TRAI may carry out performance tests as required for checking
Quality of Service, if it so desires. The LICENSEE shall supply all necessary literature,
drawings, etc. regarding the equipment installed and shall also supply all the tools, test
instruments and other accessories to the testing party of the Licensor/ TRAI for
conducting the tests. The list of performance tests will be furnished by the Licensee,
which may be amended by the Licensor.
33.2 The Acceptance Testing for each and every interface with any NSO may be
carried out by mutual arrangements between the LICENSEE and the NSO involved. The
Interconnection Test schedule shall be mutually agreed.
33.3 Whenever any element of the network/system of the Licensee, if permitted to be
installed outside the Service Area as per the terms of the respective service authorization
and has been so installed, the Licensee shall ensure availability of facilities for access to
such elements from within the Service Area without any limitation or restriction and at
any time as required by the Licensor. However, it shall not preclude the Licensor from
accessing such elements at its physical location for the purposes of data/information in
respect of any Service Area served by such element.
34.
Right to inspect:
34.1 The Licensor or its authorized representative or Ministry of Information &
Broadcasting in respect of IPTV Service, or its authorized representative shall have right
to access and inspect sites used for extending the Service and in particular but not limited
to, have the right to have access to leased lines, junction, terminating interfaces,
hardware/software, memories of semiconductor, magnetic and optical varieties, wired or
wireless equipment, distribution frames. The Licensor or its authorized representative
may also conduct the performance test including to enter into dialogue with the system
through input/output devices or terminals. The Licensee will provide the necessary
facilities for continuous monitoring of the system in the Licensed Service Area, as
required by the Licensor or its authorized representative(s). The inspection will ordinarily
be carried out after reasonable notice except in circumstances where giving such a notice
will defeat the very purpose of the inspection.
34.2 Wherever considered appropriate, Licensor or the Ministry of Information &
Broadcasting in respect of IPTV Service, may conduct any inquiry either suo-motu or on
the complaint to determine whether there has been any breach in compliance of terms &
conditions of the LICENSE by the Licensee and upon such inquiry, the Licensee shall
extend all reasonable facilities without any hindrance to the Licensor/Ministry of
Information & Broadcasting as the case may be.
35.
Location of Network Elements:
35.1 The Licensee on request shall provide to the Licensor location details of all
network elements including switching centres, transmission centres, along with routing
details, network operation & control/ management Centre, equipment details, network
15 Appended vide letter no 20-271/2010 AS-I (Vol.-III) dated 23.09.2021
UL(VNO) agreement updated up to 31.03.2024 30
topology, Base Stations, end to end connectivity, Cable routes and capacity along with
GIS mapping and any other detail as may be required by Licensor from time to time if the
network elements are installed/owned by VNO. Any network resource including the
bandwidth/ leased line/ VPN either owned or taken on lease/ hire shall be treated as part
of the Licensee Network.
35.2 In areas which are sensitive from security point of view, as may be notified from
time to time by the Licensor, installation of any equipment or execution of project shall
be taken up only after the Licensor’s approval.
35.3 The Licensor may prescribe restrictions for provision of services in areas falling
near International Border/Line of Control/Line of Actual Control of India or any other areas
as may be prescribed by the Licensor.
36.
Confidentiality of information:
36.1 The Licensee shall not employ bulk encryption equipmentin its network. Licensor
or officers specially designated for the purpose may evaluate any encryption equipment,
if owned by Licensee and connected to the Licensee’s network. However, the Licensee
shall have the responsibility to ensure protection of privacy of communication and to
ensure that unauthorized interception of MESSAGE does not take place in case network
equipment is owned/ installed/ operated by the licensee
36.2 Subject to terms and conditions of the license, the Licensee shall take all
necessary steps to safeguard the privacy and confidentiality of any information about a
third party and its business to whom it provides the Service and from whom it has
acquired such information by virtue of the Service provided and shall use its best
endeavors to secure that:
a)
No person acting on behalf of the Licensee or the Licensee divulges or uses
any such information except as may be necessary in the course of providing such
Service to the Third Party; and
b)
No such person seeks such information other than is necessary for the
purpose of providing Service to the Third Party.
Provided the above para shall not apply where:
a) The information relates to a specific party and that party has consented in
writing to such information being divulged or used, and such information is
divulged or used in accordance with the terms of that consent; or
b) The information is already open to the public and otherwise known.
36.3 The Licensee shall take necessary steps to ensure that the Licensee and any
person(s) acting on its behalf observe confidentiality of customer information.
36.4 The Licensee shall, prior to commencement of Service, confirm in writing to the
Licensor that the Licensee has taken all necessary steps to ensure that it and its
employees shall observe confidentiality of customer information.
36.5 The use of encryption by the subscriber shall be governed by the Government
Policy/rules made under the Information Technology Act, 2000.
37.
Prohibition of certain activities by the Licensee:
37.1 Carriage of objectionable, obscene, unauthorized or any other content, messages
or communications, if equipment owned by the licensee, infringing copyright and
UL(VNO) agreement updated up to 31.03.2024 31
UL(VNO) agreement updated up to 31.03.2024 31
intellectual property right, etc., in any form, in the network is not permitted as per
established laws of the country. Once specific instances of such infringement are
reported to the Licensee by the enforcement agencies/Licensor, the Licensee shall take
necessary measures to prevent carriage of such messages in its network immediately.
37.2 The LICENSEE is obliged to provide, without any delay, all the tracing facilities to
trace nuisance, obnoxious or malicious calls, messages or communications transported
through his equipment and network, if the equipment capable of tracing is with licensee,
to the agencies of Government of India as authorized from time to time, when such
information is required for investigations or detection of crimes and in the interest of
national security. Any damages arising on account of Licensee’s failure in this regard
shall be payable by the Licensee.
37.3 In case any confidential information is divulged to the LICENSEE for proper
implementation of the Agreement, it shall be binding on the LICENSEE and its employees
and servants to maintain its secrecy and confidentiality.
37.4 The LICENSEE shall ensure that the Telecommunication infrastructure or
installation thereof, carried out by it, should not become a safety or health hazard and is
not in contravention of any statute, rule, regulation or public policy.
37.5 The Licensee shall in no case permit service to any Telecom Service Provider
(including those Other Service Providers who do not require License under Section 4 of
Indian Telegraph Act, 1885) whose License is either revoked or suspended or not in
operation at any point of time. Where connectivity already exists, the Licensee shall be
obliged to disconnect or sever connectivity immediately without loss of time upon receipt
of any reference from the Licensor in this regard. Disconnection shall be made effective
within one hour or within such time as directed by the Licensor in writing, after receiving
reference from the Licensor in this regard.
1637.6 Licensee shall not enter into any exclusive contract for establishing public network
to provide public telecom services or Right of Way (RoW) with any Public entity or any
Person.
16 Amended vide letter 20-271/2023 AS-I dated 27.07.2023
UL(VNO) agreement updated up to 31.03.2024 32
CHAPTER-VI
SECURITY CONDITIONS
38.
The LICENSEE shall meet the instructions/directions of the Licensor issued from
time to time in the interest of national security apart from the following conditions:
38.1 The LICENSEE shall provide necessary facilities depending upon the specific
situation at the relevant time to the Government to counteract espionage, subversive act,
sabotage or any other unlawful activity, if facility to counteract/do so is available with the
Licensee.
38.2 The LICENSEE shall make available on demand to the person authorized by the
Licensor, full access to the switching centers, transmission centers, routers and other
network elements including equipment installed in subscriber premises etc., if owned by
the Licensee for technical scrutiny and for inspection, which can be visual inspection or
an operational inspection if such equipment are installed by Licensee.
38.3 All foreign personnel likely to be deployed by the LICENSEE for installation,
operation and maintenance of the Licensee’s network shall be security cleared by the
Government of India prior to their deployment. The security clearance will be obtained
from the Ministry of Home Affairs, Government of India.
38.4 The LICENSEE shall ensure protection of privacy of communication and ensure
that unauthorized interception of messages does not take place if equipment for
interception of message is with Licensee.
38.5 The LICENSEE shall be completely and totally responsible for security of their
networks if network equipment pertain to Licensee. The LICENSEE shall have
organizational policy on security and security management of their networks including
Network forensics, Network Hardening, Network penetration test, Risk assessment.
Actions to fix problems and to prevent such problems from recurring should be part of
the policy. The LICENSEE shall submit its policy to Licensor within 90 calendar days from
the date of issue of the License/each service authorization.
38.6 In furtherance of organizational security policy, the LICENSEE shall audit its
network or get the network, if owned, audited from security point of view once in a
financial year from a network audit and certification agency. The first audit may be carried
out in the financial year succeeding the financial year of the signing of the LICENSE/
Service authorization. The LICENSEE is free to engage the service of any agency for
this purpose, which is certified to carry out the audit as per relevant ISO standards.
Presently ISO 15408 and ISO 27001 standards are applicable.
38.7 The LICENSEE shall induct, if required, only those network elements into its
telecom network, which have been got tested as per relevant contemporary Indian or
International Security Standards e.g. IT and IT related elements against ISO/IEC 15408
standards, for Information Security Management System against ISO 27000 series
Standards, Telecom and Telecom related elements against 3GPP security standards,
3GPP2 security standards, etc. The certification shall be got done only from authorized
and certified agencies/ labs in India or as may be specified by the Licensor. The copies
of test results and test certificates shall be kept by the LICENSEE for a period of 10 years
from the date of procurement of equipment.
UL(VNO) agreement updated up to 31.03.2024 33
UL(VNO) agreement updated up to 31.03.2024 33
1738.7.1 The Government through the Designated Authority will have the right to impose
conditions for procurement of Telecommunication Equipment on grounds of Defence of
India, or matters directly or indirectly related thereto, for national security. Designated
Authority for this purpose shall be National Cyber Security Coordinator. In this regard,
the licensee shall provide any information as and when sought by the Designated
Authority.
Designated Authority shall notify the categories of equipment for which the security
requirement related to Trusted Sources are applicable. For the said categories of
equipment, Designated Authority shall notify the Trusted Sources along with the
associated Telecommunication Equipment (Trusted Products). The Designated Authority
may also notify a list of Designated Sources from whom no procurement can be done.
Procedure for inclusion of Telecommunication Equipment in the list of Trusted Sources
will be issued by the Designated Authority.
18With effect from 15thJune 2021, the licensee, shall only connect Trusted Products in its
network and also seek permission from Designated Authority for upgradation or
expansion of existing Network utilizing the Telecommunication Equipment not designated
as Trusted Products. However, these directions will not affect ongoing Annual
Maintenance Contracts (AMC) or updates to existing equipment already inducted in the
network as on date of effect.
The licensees shall comply with the Guidance for Enhanced Supervision and Effective
Control of Telecommunication Networks, as per guidelines to be issued by the licensor.
38.8 The LICENSEE shall include all contemporary security related features and
features related to communication security as prescribed under relevant security
standards while procuring the equipment if required and implement all such
contemporary features into the network. A list of features, equipment, software, etc.
procured and implemented shall be kept by the LICENSEE till they are in use, which may
be subjected to inspection and testing by the Licensor at any time, in the network or
otherwise, at the option of the Licensor.
38.9 The LICENSEE, if owns network equipment, shall
(i)
Ensure that all the documentation, including software details are obtained
from manufacturer/vendor/supplier in English language.
(ii)
Keep a record of operation and maintenance procedure in the form of a
manual.
(iii)
Keep a record of all the operation and maintenance command logs, if
equipment is owned and operated by Licensee, for a period of 12 months,
which shall include the actual command given, who gave the command, when
was it given with date and time and from where. For next 24 months the same
information shall be stored/ retained in a non-online mode. For this purpose,
LICENSEE shall keep a list of User ID linked with name and other details of
the user duly certified by the system administrator. The user list shall be
provided to Licensor or agencies designated by the Licensor as and when
required.
17 Amended vide letter no. 20-271/2010 AS-I (Vol.-III) dated 10.03.2021
18 Amended vide letter no. 20-271/2010 AS-I (Vol.-III) dated 11.07.2022
UL(VNO) agreement updated up to 31.03.2024 34
(iv)
Keep a record of all the software updatings and changes. The major updatings
and changes should also be informed to Licensor within 15 days of completion
of such updatings and changes.
(v)
Keep a record of supply chain of the products (hardware/ software). This
should be taken from the manufacturer/ vendor/ supplier at the time of
procurement of the products.
38.10 (i)
The LICENSEE shall create facilities for the monitoring of all intrusions,
attacks and frauds on his technical facilities, in case the equipment to do so is available
with VNO and provide reports on the same to the Licensor. Such facilities shall be created
by the Licensee within 12 months of effective date of this LICENSE/ authorization and be
reported to Licensor as and when created during this period.
38.10 (ii)
The Licensee through suitable agreement clauses with vendor shall ensure
that the Vendor/ Supplier allow the Licensee, Licensor and/or its designated agencies to
inspect the hardware, software, design, development, manufacturing facility and supply
chain and subject all software to a security/ threat check any time during the supplies of
equipment. The number of such visits will be limited to two in a Purchase Order (PO).
The expenditure for such visits, limited upto 40 man-days per visit, for each purchase
order of value above Rs 50 crore, shall be borne by the LICENSEE directly or through
vendor.
38.11 (i)
A penalty upto Rs 50 crore per occasion will be levied for any security
breach, in case network equipment in which such breach has happened belongs to VNO,
which has been caused due to inadvertent inadequacy/inadequacies in precaution on the
part of Licensee prescribed under this License. Licensor shall constitute a five members
committee, which shall include two cyber security experts, to determine whether the
breach is due to inadvertent inadequacy/ inadequacies or otherwise. The committee shall
also decide the amount of penalty depending upon loss, gravity of breach, etc.
38.11 (ii)
In case of inadequate compliance to the measures prescribed under this
License, act of intentional omissions, deliberate vulnerability left into the equipment, if
owned by VNO, or in case of deliberate attempt for a security breach, penalty amount
will be Rs. 50 crores per breach. The same breach in the same equipment purchased
through same PO or in the same lot or the same negligence at the same time at multiple
locations in an operator’s network will be considered as a single breach for the purpose
of levying penalty under this clause. The LICENSEE shall deposit the penalty amount
with the Licensor within 30 days of the issue of Notice.
38.11 (iii)
Besides the penalty, liability and criminal proceedings under the relevant
provisions of various Acts such as Indian Telegraph Act, Information Technology Act,
Indian Penal Code (IPC), Criminal Procedure Code (CrPC), etc. can be initiated. In such
cases, LICENSE of the LICENSEE can also be terminated, vendor or supplier who
supplied the hardware/software, that caused the security breach, could be blacklisted for
doing business in the country or both. The LICENSEE must include the clause of
discretion of blacklisting of vendor or supplier in such cases in the agreement signed with
vendors/suppliers.
38.11 (iv)
Licensor may make any of the following suggestions, which help in
increasing the security of the telecom network, mandatory whenever deemed necessary
to do so.
a)
May sign a suitable agreement with hardware/ software manufacturer/
vendors and/or suppliers of services to ensure that the equipment/ services/
software they supply are ‘Safe to Connect’ in the network, have been checked
UL(VNO) agreement updated up to 31.03.2024 35
UL(VNO) agreement updated up to 31.03.2024 35
thoroughly for risks and vulnerabilities, all addressable vulnerabilities have been
addressed, non-addressable vulnerabilities have been listed with remedial
measures and precautions provided. The agreement should cover aspects related
to security measures like access control, Password control and management, etc.
Clauses addressing the service continuity and service up-gradation should also
be suitably included in the agreement, with consequences defined for each party
in case of breach, particularly the security breaches. As an information
dissemination and facilitating measure, suggested clauses for such an agreement
in the form of a template will be available on the website of DoT. The service
providers may take all or selected provisions from this template, depending upon
the type of services they avail from a vendor/ supplier. They are free to add,
modify, delete any of the clauses from this template, because security of their
network is their responsibility and they will be liable for any security breach.
b)
The Licensees should endeavor to create a forum, say, Telecom Security
Council of India (TSCI), on a voluntary basis to increase the security assurance
levels and share common issues.
c)
The Licensee shall build their own capability and capacity to maintain and
operate the network if required, preferably through local maintenance personnel,
because the telecom network is a security sensitive infrastructure.
38.12 In the interests of security, suitable monitoring equipment as per requirement of
the Licensor or designated Security Agencies for each type of system used shall be
provided by the Licensee for monitoring, in case the equipment to do so is available with
VNO otherwise with parent NSO(s), as and when required by Licensor. The specific
orders or directions from the Government, issued under such conditions, shall also be
applicable.
38.13 The precise delineation of geographical borders taken by the Licensee for the
purpose of defining service area along International borders, if any, shall have prior
approval of the Government of India. The terrestrial boundaries of India shall be as
depicted in the maps issued by Survey of India.
38.14 The use of the network for anti-national activities would be construed as an offence
punishable under the Indian Penal Code or other applicable law. The networks cannot
be used in such a manner as to endanger or make vulnerable a networked infrastructure.
Acts such as break-ins or attempted break-ins of Indian networks shall be regarded as
an anti-national act and shall be dealt with in accordance with the Indian Penal Code.
Licensee must ensure that their services are not used for such purposes, if network is
owned by VNO. Besides penal action as stated above, such an activity/activities could
be sufficient reason for the Licensor to revoke this license.
38.15 The Government through appropriate notification may debar usage of mobile
terminals in certain areas in the country. The LICENSEE shall deny Service in areas
specified by designated authority immediately, if equipment to do so is with VNO in any
case within six hours on request. The LICENSEE shall also provide the facility to carry
out surveillance of Mobile Terminal activity within a specified area.
38.16 Licensor shall have the right to take over the Service, equipment and networks of
the Licensee (either in part or in whole of the Service Area) in case any directions are
issued in the public interest by the Government of India in the event of a National
emergency/ war or low intensity conflict or any other eventuality. Any specific orders or
directions from the Government of India issued under such conditions shall be applicable
to the Licensee and shall be strictly complied with.
UL(VNO) agreement updated up to 31.03.2024 36
38.17 (i)
The Licensee shall ensure adequate verification of each and every
customer before enrolling him as a subscriber; instructions issued by the Licensor in this
regard from time to time shall be scrupulously followed. The Licensee shall make it clear
to the subscriber that the subscriber will be responsible for proper and bona-fide use of
the service.
38.17 (ii)
Format prescribed by the Licensor delineating the details of information
required before enrolling a customer as a subscriber shall be followed by the Licensee.
A photo identification of subscribers shall be pre-requisite before providing the service.
The Licensor may prescribe service-wise detailed instructions for enrolment of subscriber
and activation of service from time to time.
38.17(iii)
The Licensee shall activate the Leased Line, Internet Leased Line and
IPLC service only after checking the bona-fide of the customer, verifying details as per
Customer Acquisition Form (CAF) prescribed from time to time and physical inspection
of the site. Further, in the case of Leased Line, the reasons for taking the link by the
customer shall be recorded.
38.17 (iv)
CAF verification and number activation shall be the responsibility of
licensee. Licensee shall bear the penalty on account of failure of subscriber verification
norms (for its own customers). Other penalties which are beyond the scope of the VNO
viz. roll out obligations, core network issues, etc. shall be borne by the NSO as per
existing norms defined for them. Customer acquisition will be done by VNO, the CAF
penalty would be borne by VNO and other penalties beyond the scope of VNO will be
borne by NSO.
38.18 The complete list of subscribers shall be made available by the Licensee on their
website (having password controlled access), so that designated Security Agencies are
able to obtain the subscriber list at any time, as per their convenience with the help of the
password. The list should be updated on regular basis. Hard copy as and when required
by security agencies shall also be furnished.
38.19 The Licensor or its representative(s) will have an access to the Database relating
to the subscribers of the Licensee. The Licensee shall also update the list of his
subscribers and make available the same to the Licensor at such intervals as may be
prescribed. The Licensee shall make available, at any prescribed instant, to the Licensor
or its authorized representative details of the subscribers using the service.
1938.20 The Licensee shall, if equipment is owned by Licensee, maintain all commercial
records/ Call Detail Record (CDR)/ Exchange Detail Record (EDR)/ IP Detail Record
(IPDR) with regard to the communications exchanged on the network. Such records shall
be archived for at least two year for scrutiny by the Licensor for security reasons and may
be destroyed thereafter unless directed otherwise by the Licensor. Licensor may issue
directions/instructions from time to time with respect to CDR/IPDR/EDR.
38.21 (i) Calling Line Identification (CLI), if equipment is owned by VNO, shall be
provided. The network should also support Malicious Call identification and Centralized
Automatic Message Accounting (CAMA).
38.21 (ii) Calling Line Identification (CLI) shall never be tampered as the same is also
required for security purposes and any violation of this amounts to breach of security.
19Amended vide letter no. 20-271/2010 AS-I (Vol.-III) dated 21.12.2021
UL(VNO) agreement updated up to 31.03.2024 37
UL(VNO) agreement updated up to 31.03.2024 37
38.22(i) Utmost vigilance should be exercised in providing bulk connections for a single
user as well as for a single location. Provision of 10 or more connections may be taken
as bulk connections for this purpose. Special verification of bona-fide should be carried
out for providing such bulk connections. Information about bulk connections shall be
forwarded to respective Telecom Enforcement, Resource & Monitoring (TERM) Cell and
any other officer authorized by Licensor from time to time as well as all Security Agencies
on monthly basis.
38.22 (ii) The call detail records for outgoing calls made by customers should be
analyzed, if equipment to do so is with VNO, for the subscribers making large number of
outgoing calls day and night and to the various telephone numbers. Normally, no
incoming call is observed in such cases. This can be done by running special program
for this purpose. The service provider should devise appropriate fraud management and
prevention programme and fix threshold levels of average per day usage in minutes of
the telephone connection; all telephone connections crossing the threshold of usage
should be checked for bona-fide use. A record of check must be maintained which may
be verified by Licensor any time. The list/details of suspected subscribers should be
informed to the respective TERM Cell of DoT and any other officer authorized by Licensor
from time to time.
38.22 (iii) Active support must be extended by the service providers to the respective
TERM cells of DoT for detection of clandestine/ illegal telecommunications facilities. For
this purpose, names of the Nodal officers & alternate Nodal Officers in respect of each
licensed service area as communicated to the Intelligence Agencies for monitoring of
telecommunications should also be forwarded to respective TERM cell of DoT, and any
other officer authorized by Licensor from time to time. The TERM Cell of DoT will contact
the Nodal Officer/ alternate Nodal officer, and till the time such nomination is received or
in case of non-availability of such officer, the TERM Cell will contact the Chief Executive
Officer of the Licensee, for such support/ coordination.
38.22 (iv) Bulk users’ premises should be inspected by the service providers at regular
intervals for satisfying themselves about bona-fide use of such facilities. A record of such
inspection should be maintained and preserved for minimum one year, for inspection/
verification by the licensing authority or a designated officer of the authority.
38.22 (v) Leased circuits should also be checked/ inspected at regular intervals for their
bona-fide use and to detect any misuse.
38.23 The Licensee shall also ensure compliance of the following conditions:
(i)
All the conditions requiring network equipment deployment would be applicable
if the VNO has installed its network. In case VNO does not have network and
relies only on the network of NSO, these conditions requiring the Chief Officer in
charge of technical network operations and the Chief Security Officer/Chief
Information Security Officer, and in-charge of, MSC, Central Database, PMRTS
Central/Base Station, Switches and System Administrators be resident Indian
citizen & other security conditions may not be required.
(ii)
Licensee may, on need basis, provide details of its infrastructure/ network
diagram (technical details of the network), if operated by VNO, only to telecom
equipment suppliers/manufacturers and the affiliate/ parents of the Licensee
Company. Clearance from the Licensor would be required if such information is
to be provided to anybody else.
UL(VNO) agreement updated up to 31.03.2024 38
(iii)
The Licensee Company shall take adequate and timely measures to ensure that
the information transacted through a network, if owned by Licensee, by the
subscribers is secure and protected.
(iv)
The officers/ officials/ Nodal Executives of the Licensee companies dealing with
the lawful interception of messages will be resident Indian citizens in case
equipment capable of interception is under the licensee.
(v)
The majority Directors on the Board of the Licensee company shall be Indian
citizens.
(vi)
The positions of the Chairman, Managing Director, Chief Executive Officer (CEO)
and/or Chief Financial Officer (CFO), if held by foreign nationals, would require
to be security vetted by Ministry of Home Affairs (MHA). Security vetting shall be
required periodically on yearly basis. In case something adverse is found during
the security vetting, the direction of MHA shall be binding on the Licensee.
(vii)
On request of the Licensor or any other agency authorized by the Licensor, the
Licensee shall be able to provide the geographical location of any subscriber
(BTS location and Location details including latitude & longitude details) at a
given point of time, if equipment to do so is with VNO.
(viii)
The Remote Access (RA) to network, if owned by VNO, would be provided only
to approved locations abroad through approved location(s) in India. The approval
for location(s) would be given by the Licensor (DoT) after satisfying itself about
the appropriateness.
(ix)
Under no circumstances, should any RA to the suppliers/manufacturers and
affiliate(s) be enabled to access Lawful Interception System(LIS), Lawful
Interception Monitoring(LIM), Call contents of the traffic and any such sensitive
sector/data, which the Licensor may notify from time to time.
(x)
The Licensee is not allowed to use remote access facility for monitoring of
content.
(xi)
Suitable technical device should be made available at Indian end to the
designated security agency/Licensor in which a mirror image of the remote
access information is available on line for monitoring purposes as per direction
of the Licensor from time to time.
(xii)
Complete audit trail of the remote access activities pertaining to the network
operated in India should be maintained for a period of six months and provided
on request to the Licensor or any other agency authorized by the Licensor.
(xiii)
The Licensee shall familiarize/ train TERM Cell/ security agency officers/ officials
in respect of relevant operations/ features of their systems.
(xiv)
It shall be open to the Licensor to restrict the Licensee Company from operating
in any sensitive area from the National Security angle.
(xv)
In order to maintain the privacy of voice and data, monitoring shall be in
accordance with rules in this regard under Indian Telegraph Act, 1885.
(xvi)
For monitoring traffic, the Licensee Company shall provide access of their
network and other facilities as well as to books of accounts to the security
agencies.
UL(VNO) agreement updated up to 31.03.2024 39
UL(VNO) agreement updated up to 31.03.2024 39
38.24 Licensor reserves the right to modify these conditions or incorporate new
conditions considered necessary in the interest of national security and public interest or
for proper conduct of TELEGRAPH.
39.
Application of Indian Telegraph Act, 1885:
39.1 The Licensee shall adopt all means and facilitate in every manner the application
of the Indian Telegraph Act, 1885 and Indian Wireless Telegraphy Act, 1933 as modified
or replaced from time to time. The Service shall be provided in accordance with the
provisions of Indian Telegraph Rules as modified and amended from time to time.
39.2 As per the provision of Section 5 of Indian Telegraph Act, the Licensee will provide
necessary facilities to the designated authorities of Central/State Government as
conveyed by the Licensor from time to time for interception of the messages passing
through its network in case equipment to do so is with the licensee.
Section 5 (2) of the Indian Telegraph Act 1885 reads as under:
“On the occurrence of any public emergency or in the interest of public safety, the
Central Government or a State Government or any officer specially authorized in
their behalf by the Central Government or a State Government may, if satisfied
that it is necessary or expedient to do so in the interest of the sovereignty and
integrity of India, the security of the State, friendly relations with foreign states or
public order or for preventing incitement to the commission of an offense for class
or messages to or from any person or class of persons or relating to any particular
subject, brought for transmission by or transmitted or received by any telegraph,
shall not be transmitted or shall be intercepted or detained or shall be disclosed to
the Government making the order or an officer thereof mentioned on the order:
Provided that press messages intended to be published in India of correspondents
accredited to the Central Government or a State Government shall not be
intercepted or detained, unless their transmission has been prohibited under this
subsection.”
UL(VNO) agreement updated up to 31.03.2024 40
CHAPTER-VII
SPECTRUM ALLOTMENT AND USE
40.1.1 VNO would take backhaul Spectrum & Access Spectrum from parent NSO(s).
UL(VNO) agreement updated up to 31.03.2024 41
UL(VNO) agreement updated up to 31.03.2024 41
PART - II
[PART-II consisting of Chapter – VIII to XVII contains the terms and conditions specific
to the respective Service Authorization, which are in addition to the terms and conditions
contained in PART-I]
UL(VNO) agreement updated up to 31.03.2024 42
CHAPTER-VIII
ACCESS SERVICE
1.
Service Area: The Service Area of Access Service shall be the Telecom
Circle/Metro area as defined in Annexure-IV. License/Authorization for Access Service,
if granted for more than one Service Area (Telecom Circle/Metro), shall be administered
separately for each Service Area as per terms and conditions contained in Part-I and in
this chapter.
2.
Scope of Access Service: Scope of this authorization covers the following:
2.1(a)(i)
The Access Service under this authorization covers collection, carriage,
transmission and delivery of voice and/or non-voice MESSAGES over Licensee’s & or
NSO’s network in the designated Service Area. The Licensee can also provide Internet
Telephony, Internet Services including IPTV, Broadband Services and triple play, i.e.
voice, video and data. While providing Internet Telephony service, the Licensee’s parent
NSO may interconnect Internet Telephony network with PSTN/PLMN/GMPCS network.
The Licensee may provide access service, which could be on wireline and/or wireless
media with full mobility, limited mobility and fixed wireless access.
(ii)
The Licensee can acquire customer for delivery of services offered in its network
and/or NSO’s network using only the spectrum band held & technology deployed by the
NSO(s). While roaming on other Licensees’ network, the services availed by the
subscriber shall be limited to only those services which have been subscribed in its parent
NSO’s home network.
(iii)
The NSO(s) to which the licensee is connected/parented may also enter into
agreements with telecom service providers abroad for providing roaming facility to
subscriber’s of licensee unless directed by Licensor otherwise.
(iv)
The Licensee may provide leased circuits within its respective service area.
Interconnection of leased circuits, whether point to point or in CUG network, with
PSTN/PLMN/GMPCS/Internet Telephony Network is not permitted.
(v)
The Licensee may also provide Voice Mail/Audiotex/Unified Messaging services,
Video Conferencing over its network to the subscribers falling within its SERVICE AREA
on non-discriminatory basis. All the revenue earned by the Licensee through these
services shall be counted towards the revenue for the purpose of paying License Fee
under the LICENSE AGREEMENT.
20(vi) Deleted.
(vii)
Except those services permitted under the scope of this authorization, the
Licensee shall not provide any service/ services which require a separate service
authorization/ license.
(viii)
The Licensee may offer “Home Zone Tariff Scheme (s)” as a subset of full mobile
service in well-defined geographical Areas through a tariff of its choice within the scope
of orders of TRAI on the subject. Numbering and interconnection for this service shall be
same as that of fully mobile subscribers.
2.1 (b) In respect of subscriber availing limited mobility facility, the mobility shall be
restricted to the local area, i.e. Short Distance Charging Area (SDCA) in which the
subscriber is registered. While deploying such systems, the LICENSEE has to follow the
20 Amended vide DoT letter no 20-271/2010 AS-I (Vol. - III) dated 23.08.2022.
UL(VNO) agreement updated up to 31.03.2024 43
UL(VNO) agreement updated up to 31.03.2024 43
SDCA based linked numbering plan in accordance with the National Numbering Plan of
the respective SDCA within which the service is provided and it should not be possible
to authenticate and work with the subscriber terminal equipment in SDCAs other than the
one in which it is registered. Terminal of such subscriber in wireless access system can
be registered in only one SDCA. Multiple registration or Temporary subscriber/
Subscription facilities in more than one SDCA using the same Subscriber terminal in
wireless access systems is not permitted and the same Subscriber Terminal cannot be
used to avail Limited Mobile facility in more than one SDCA. The system shall also be so
engineered to ensure that hand over of subscriber does not take place from one SDCA
to another SDCA under any circumstances, including handover of the calls through call
forwarding beyond SDCA. The LICENSEE must ensure that the mobility in case of such
limited mobile service/ facility remains restricted to SDCA.
2.2
Licensee may carry intra-circle long distance traffic on its network.
2.3
For providing service, the Licensee may setup and operate rural telephone
exchange and last mile linkages thereof. Cable Operators registered under The Cable
Television Networks (Regulation) Act, 1995 and the amendments thereto may act as
VNO to provide Internet and Voice services, to use the last mile linkages in rural area.
2.4
Stands deleted
2.5
For provision of Internet Telephony, Internet Services, Broadband Services and
triple play, i.e. voice, video and data, the Conditions No. 2.1(i), 2.1(vii), 2.2, 5, 6, and 7 of
Chapter IX (Internet Service) shall also be applicable.
212.5 (ii) Internet Telephony calls originated by International out roamers from
international locations shall be handed over at the International gateway of licensed
ILDOs and International termination charges shall be paid to the terminating access
service provider. In case the Licensee is not able to ensure that Internet Telephony call
originated outside of the country is coming through ILDO gateway, International out
roaming to Internet Telephony subscribers of the access provider shall not be allowed.
Further, the calls originated outside the country using internet telephony shall be routed
through ILD (International Long Distance) Gateway like any other international call.
2.5 (iii) The mobile numbering series should be used for providing Internet Telephony by
a Licensee. TSPs are allowed to allocate same number to the subscriber both for Cellular
Mobile service and Internet Telephony service. The access service licensee should use
private ENUM in its network for Telephone number mapping from E.164 to SIP/H.323
addresses and vice-versa.
2.5 (iv) The licensees should comply with all the interception and monitoring related
requirements as specified in the license as amended from time to time for providing
Internet Telephony.
The Public IP address used for originating/terminating Internet Telephony calls should be
made a mandatory part of CDR in case of Internet Telephony. The location details in form
of latitude and longitude should also be provided wherever it is feasible
CLI Restriction (CLIR) facility should not be provided for Internet Telephony Subscribers.
2.5 (v) IP Address assigned to a subscriber for Internet Telephony shall conform to IP
addressing Scheme of Internet Assigned Numbers Authority (IANA) only.
21Appended vide letter no.20-573/2017 AS-I dated 19.06.2018
UL(VNO) agreement updated up to 31.03.2024 44
2.5 (vi) The Licensees providing Internet Telephony service may facilitate access to
emergency number calls using location services; however it is not mandated to provide
such services at present. The subscribers may be informed about the limitation of
providing access to emergency services to Internet Telephony subscribers in
unambiguous terms.
2.5 (vii) The Licensees must inform QoS parameter supported by them for Internet
Telephony so that the subscribers can take an informed decision.
2.5 (viii) In case of provision of Internet Telephony by Licensee, the numbering resource
allocation should be done by the parent NSO.
3.
FINANCIAL CONDITIONS
3.1
GROSS REVENUE
The Gross Revenue shall be inclusive of installation charges, late fees, sale proceeds of
handsets (or any other terminal equipment, etc.), revenue on account of interest,
dividend, value added services, supplementary services, revenue earned from parent
NSO(s), revenue from permissible sharing of infrastructure and any other miscellaneous
revenue, without any set-off for related item of expense, etc.
3.1A Applicable Gross Revenue (ApGR):
ApGR shall be equal to Gross Revenue (GR) of the licensee as reduced by the items
listed below:
(i) Revenue from operations other than telecom activities/ operations.
(ii) Revenue from activities under a license/ permission issued by Ministry of Information
and Broadcasting.
(iii) Receipts from the USO Fund.
(iv) List of other income* to be excluded from GR to arrive at ApGR
a. Income from Dividend
b. Income from Interest
c. Capital Gains on account of profit of Sale of fixed assets and securities
d. Gains from Foreign Exchange rates fluctuations
e. Income from property rent
f. Insurance claims
g. Bad Debts recovered
h. Excess Provisions written back
*Subject to conditions given in Annexure VII.
3.2
Adjusted Gross Revenue (AGR)
For the purpose of arriving at the “Adjusted Gross Revenue (AGR)”, following shall be
excluded from the Applicable Gross Revenue (ApGR):
a. Charges paid to its parent NSO(s) towards applicable access charges such as
carriage charges, termination charges and roaming charges;
b. Charges paid to NSOs towards Bulk/Wholesale bandwidth, leased line and
bandwidth charges, minutes and SMSs. However, these charges should be
UL(VNO) agreement updated up to 31.03.2024 45
UL(VNO) agreement updated up to 31.03.2024 45
governed by a written agreement, a copy of which must be provided along with the
proof of actual payment for the deduction to be allowed; and
c. Goods and Service Tax (GST) paid to the Government if Applicable Gross Revenue
(ApGR) had included as component of GST.
4. Technical & Operating Conditions
4.1
MNP process shall be facilitated for Licensees subscribers through the network
(MNP Gateway) of the parent NSO. All regulations, orders and directions issued by TRAI
in connection with MNP will be applicable to Licensees & NSOs.
4.2
The sharing of infrastructure, owned, established and operated by the Licensee
under the scope of this Authorization, is permitted as below:
(i)
Sharing of “passive” infrastructure viz., building, tower, dark fiber, duct space,
Right of Way, etc. with other Licensees TSPs.
(ii)
Provision of point to point bandwidth from their own infrastructure within their
Service Area to other licensed telecom service providers for their own use. However, the
Licensee hiring the bandwidth shall not resell such bandwidth.
4.3
Further, the Licensee may share its own active and passive infrastructure for
providing other services authorized to it under the license.
4.4
Moreover, sharing of active infrastructure with other licensees shall be governed
by the license conditions/amendments issued by the Licensor from time to time.
4.5 Location of switches and other network elements: The licensee shall install
applicable system within its service area if required.
5.
Network Interconnection:
5.1
Network interconnection will be provided by NSO and not the licensee. The
licensee will connect to its parent NSO (s).
225.2 For wire line access services through EPABX, the connectivity of different NSOs at
different EPABX is allowed, however, the connectivity with more than one NSO at a
particular EPABX shall not be permitted.
6.
Emergency and Public Utility Service:
6.1
The LICENSEE shall provide all public utility services as well as emergency
services including toll free services like police, fire, ambulance through parent NSO.
7.
Security Conditions (Applicable if Network is owned by Licensee):
237.1 (i) Deleted
247.1 (ii) Deleted
257.1(iii) Deleted
22Amended vide letter no 20-562/2017 AS-I dated 02.03.2020
23 Amended vide DoT letter no 20-271/2010 AS-I (Vol. - III) dated 23.08.2022.
24 Amended vide DoT letter no 20-271/2010 AS-I (Vol. - III) dated 23.08.2022.
25 Amended vide DoT letter no 20-271/2010 AS-I (Vol. - III) dated 23.08.2022.
UL(VNO) agreement updated up to 31.03.2024 46
267.1 (iv) Deleted
7.2
The designated person of the Central/ State Government as conveyed to the
Licensor from time to time in addition to the Licensor or its nominee shall have the right
to monitor the telecommunication traffic in every MSC/ Exchange/ Routers or any other
technically feasible point in the network set up by the Licensee. The Licensee should
make arrangement for monitoring simultaneous calls by Government security agencies
in case equipment for monitoring is available with licensee. For establishing connectivity
to Centralized Monitoring System, the Licensee at its own cost shall provide appropriately
dimensioned hardware and bandwidth/dark fiber up to a designated point as required by
Licensor from time to time. However, the respective Government agency shall bear the
cost of hardware at its end and leased line circuits from the MSC/ Exchange/Router or
from the designated point as the case may be, to its monitoring centre to be located as
per its choice in its premises or in the premises of the Licensee. In case the security
agencies intend to locate the equipment at Licensee’s premises for facilitating monitoring,
the Licensee should extend all support in this regard including Space and Entry of the
authorized security personnel.
The Interface requirements as well as features and facilities as defined by the
Licensor should be implemented by the Licensee for both data and speech. The Licensee
should ensure suitable redundancy in the complete chain of Lawful Interception and
Monitoring equipment for trouble free operations of monitoring of at least 480
simultaneous calls as per requirement with at least 30 simultaneous calls for each of the
designated security/ law enforcement agencies, in case equipment is with Licensee.
Each MSC of the Licensee in the service area shall have the capacity for provisioning of
at least 3000 numbers for monitoring. Presently there are ten (10) designated security/
law enforcement agencies. The above capacity provisions and no. of designated security/
law enforcement agencies may be amended by the Licensor separately by issuing
instructions at any time.
7.3
Along with the monitored call, Call Related Information (CRI) shall be supplied in
the format prescribed from time to time, which shall at least have the following records:
(i) Called/calling party mobile/ PSTN numbers.
(ii) Time/date and duration of call.
(iii) Location of target subscribers/coordinates and name of BTS site.
(iv) Telephone numbers if any call-forwarding feature has been invoked by target
subscriber.
(v) Data records for failed call attempts.
(vi) CDR (Call Data Record) of Roaming Subscriber.
The Licensor reserves the right to modify the requirement of records in respect of CRI
any time.
The Licensee shall be required to provide the call data records of all the specified
calls handled by the system at specified periodicity, as and when required by the security
agencies in the format prescribed from time to time.
7.4 The call detail records for outgoing calls made by those subscribers making large
number of outgoing calls day and night to the various telephone numbers with normally
no incoming calls, should be analyzed. The service provider should run special
26 Amended vide DoT letter no 20-271/2010 AS-I (Vol. - III) dated 23.08.2022.
UL(VNO) agreement updated up to 31.03.2024 47
UL(VNO) agreement updated up to 31.03.2024 47
programme, devise appropriate fraud management and prevention programme and fix
threshold levels of average per day usage in minutes of the telephone connection; all
telephone connections crossing the threshold of usage should be checked for bonafide
use. A record of check must be maintained which may be verified by Licensor any time.
The list/details of suspected subscribers should be informed to the respective TERM Cell
of DoT and any other officer authorized by Licensor from time to time.
7.5
Location Details:
(i)
The Licensee shall provide, in case equipment to do so is with Licensee, location
details of mobile customers in the Service Area as per below mentioned accuracy and
time frame (from the effective date of this license). It shall be a part of CDR in the form
of longitude and latitude, besides the co-ordinates of the BTS, which is already one of
the mandated fields of CDR.
Accuracy in Percentage
Distance
in Meters
Urban
(More than 1 million
mobiles in a
municipal limit)
Sub – Urban & Rural
Remote
1 year
2 years
1 year*
2 years
3 years
2 years
3 years
50
30
50
100
60
75
50
60
-
300
80
95
50
60
70
50
60
500
60
70
80
60
70
*Applicable for the state of J&K, Assam and NE region.
(ii)
To start with, these details will be provided for specified mobile numbers.
However, within a period of 3 years from effective date of license, location details shall
be part of CDR for all mobile calls.
(iii)
Depending upon the technological feasibility and development, the limits of
accuracy requirement with respect to location as part of CDR can be modified by the
Licensor any time in future.
7.6
CLI Restriction (CLIR) should not be normally provided, if equipment is with
licensee, to the customers. Due verification for the reason of demanding the CLIR, must
be done before provision of the facility. It shall be the responsibility of the service provider
to work out appropriate guidelines to be followed by their staff members to prevent
misuse of this facility. The subscribers having CLIR should be listed in a password
protected website with their complete address and details so that authorized Government
agencies can view or download for detection and investigation of misuse. While providing
CLIR facility to subscriber, it shall be ensured that the CLI is carried from end to end on
the network. However, CLIR must not be provided in case of bulk connections, call
centers, telemarketing services.
UL(VNO) agreement updated up to 31.03.2024 48
ANNEXURE-A
(Proforma for Affidavit regarding details of calculation of “Revenue” and “License Fee”)
AFFIDAVIT
I ……………………………….., aged about ………….. years son of Shri …………………,
resident of ………………………………………………., do solemnly affirm and state as
under:
1.
That I am …………… …………………….of ………………………… (Name of the
Company),
LICENSEE
of
……………………………………….
Service
in
…………………………..Service Area and I am duly authorized by the resolutions dated
…………………………. Passed by Board of Directors of the Company to furnish affidavit
on behalf of ………………………….( Name of the Company).
2.
That in compliance of Condition No.. ………. of Schedule…………..Part ……….
and Annexure……of the License Agreement No. ……………………… signed between
the Company and the Department of Telecommunications, for payment of License fee, a
payment of Rs. ………………….. (Rupees ………. ………………………. is being made
for the period ………………….. to ………………………….. . The details of calculation
of ‘Revenue’ and License fee is as per Appendix-II …… (attached).
3.
That the contents in para 2 & 3 and Statement made in Annexure ___ are true
and correct to the best of my knowledge, based on the records of the company.
Deponent.
VERIFICATION:
Verified at ___________ on ___________ that the contents of paragraphs 1 to 3
of this Affidavit and attached ‘Statement of Revenue and License Fee’ as Annexure are
true and correct to the best of my knowledge, no part of it is false and nothing has
been concealed therefrom.
Deponent.
UL(VNO) agreement updated up to 31.03.2024 49
UL(VNO) agreement updated up to 31.03.2024 49
APPENDIX-I to ANNEXURE-A
Format of Auditor’s Report on Statement of Revenue And License Fee
To
The Board of Directors
……………………….
……………………….
We have examined the attached Statement of Revenue and License Fee of
………………………………………(the name of the operators) for the quarter(s) ending
_____________. We have also examined the reconciliation of the cumulative figures
for the quarter(s) ending _________ appearing in the Statement of Revenue and License
Fee of the company with the figures appearing in the profit and loss account of the
company for the year ended_________ which was audited by us. We understand that
the aforesaid statement(s) ( and the reconciliation) is /are to be furnished to the Central
Government for assessment of the License fee paid/ payable by the company to the
Government, in terms of the License agreement No…………………. signed between the
company and the Department of Telecommunications.
We report that:
1.
We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
2.
In our view, the company has an adequate internal control system in relation to
revenues which is commensurate with its size and the nature of its business. The
system, in our opinion, provides reasonable assurance that there is no unrecorded
revenue and that all revenue is recorded in the proper amount and in the proper
period.
3.
No amounts paid/payable in respect of sales tax, service tax or PSTN/toll/roaming
charges were outstanding at the last day of the quarter(s) for a period of more than
two months from the date they became payable, except for the following:………
4.
In our opinion and to the best of our knowledge and belief and according to the
explanations given to us, the Statement has been prepared in accordance with
the norms/guidelines contained in the said License agreement in this behalf and
gives a true and fair view of the revenue and License fee paid/payable for the
period computed on the basis of the aforesaid guidelines except for the following:
*
Strike off wherever not applicable.
(SIGNATURE)
UL(VNO) agreement updated up to 31.03.2024 50
APPENDIX-II to ANNEXURE-A
27Format of Statement of Revenue and License Fee__________ (Name and
address of operator) Access Services in_________ (Service Area)
Statement of Revenue and License Fee for the Quarter
…………………………………of the financial year……………………………………..
(AMOUNT IN RUPEES)
S.N.
PARTICULARS
ACTUALS
FOR
THE
PREVIOUS
QUARTER
ACTUALS
FOR
THE
CURRENT
QUARTER
CUMULATIV
E UPTO THE
CURRENT
QUARTER.
1
Revenue from services
A
Revenue
from
wire-line
subscribers:
(i)
Rentals
(ii)
Call revenue
(iii)
Goods & Service Tax (GST)
(iv)
Service charges
(v)
Charges on account of any other
value
added
services,
Supplementary Services etc.
(vi)
Any
other
income
/
miscellaneous
receipt
from
wireline subscribers.
B
Revenue
from
WLL
subscribers : (Fixed)
(i)
Rentals
(ii)
Call revenue
(iii)
Goods & Service Tax (GST)
(iv)
Service charges
(v)
Charges on account of any other
value
added
services,
Supplementary Services etc.
(vi)
Any
other
income
/
miscellaneous receipt from WLL
subscribers.
C
Revenue
from
WLL
subscribers : (handheld)
(i)
Rentals
(ii)
Call revenue
(iii)
Goods & Service Tax (GST)
(iv)
Service charges
(v)
Charges on account of any other
value
added
services,
Supplementary Services etc.
(vi)
Any
other
income
/
miscellaneous receipt from WLL
subscribers.
27 Amendment vide DoT letter no. 20-271/2010-AS-I(Vol.V) dated 25th October, 2021
UL(VNO) agreement updated up to 31.03.2024 51
UL(VNO) agreement updated up to 31.03.2024 51
D
Revenue
from
Mobile
Services:
D (a)
Revenue from GSM and 3G
spectrum
based
Mobile
Services:
D(a) 1.
Post paid options:
i.
Rentals
Ii
Activation Charges
iii.
Airtime Revenue
iv.
Goods & Service Tax (GST)
v.
Service charges
vi.
Charges on account of any other
value
added
services.
Supplementary Services etc.
vii.
Any
other
income/
miscellaneous receipt from post
paid options.
D(a) 2.
Pre-paid options:
i.
Sale of pre-paid SIM cards
including
full
value
of
all
components charged therein.
ii.
Activation Charges
Iii
Airtime Revenue
Iv
Goods & Service Tax (GST)
v.
Service charges
vi.
Charges on account of any other
value
added
services.
Supplementary Services etc.
vii.
Any
other
income/
miscellaneous receipt from pre-
paid options.
D(a)3.i
.
Revenue
from
Mobile
Community phone service
including full value of all
components charged therein.
ii.
Any
other
income/
miscellaneous receipt from
Mobile
Community
phone
service.
D (b)
Revenue from CDMA based
Mobile Services:
D(b) 1.
Post paid options:
i.
Rentals
Ii
Activation Charges
iii.
Airtime Revenue
iv.
Goods & Service Tax (GST)
v.
Roaming charges
Vi
Service charges
vii.
Charges on account of any other
value
added
services.
Supplementary Services etc.
UL(VNO) agreement updated up to 31.03.2024 52
viii.
Any
other
income/
miscellaneous receipt from post
paid options.
D(b) 2.
Pre-paid options:
i.
Sale of pre-paid SIM cards
including
full
value
of
all
components charged therein.
ii.
Activation Charges
Iii
Airtime Revenue
iv.
Goods & Service Tax (GST)
v.
Service charges
vi.
Charges on account of any other
value
added
services.
Supplementary Services etc.
vii.
Any
other
income/
miscellaneous receipt from pre-
paid options.
D(b)3.
i.
Revenue
from
Mobile
Community phone service
including full value of all
components charged therein.
ii.
Any
other
income/
miscellaneous receipt from
Mobile
Community
phone
service.
D (c)
Revenue from BWA Services:
D(c) 1.
Post paid options:
i.
Rentals
Ii
Activation Charges
iii.
Airtime Revenue
iv.
Goods & Service Tax (GST)
v.
Service charges
vi.
Charges on account of any other
value
added
services.
Supplementary Services etc.
vii.
Any
other
income/
miscellaneous receipt from post
paid options.
D(c) 2.
Pre-paid options:
i.
Sale of pre-paid SIM cards
including
full
value
of
all
components charged therein.
Ii
Activation Charges
iii.
Airtime Revenue
iv.
Goods & Service Tax (GST)
v.
Service charges
vi.
Charges on account of any other
value
added
services.
Supplementary Services etc.
vii.
Any
other
income/
miscellaneous receipt from pre-
paid options.
UL(VNO) agreement updated up to 31.03.2024 53
UL(VNO) agreement updated up to 31.03.2024 53
D(c)3.
i.
Revenue
from
Mobile
Community phone service
including full value of all
components charged therein.
ii.
Any
other
income/
miscellaneous receipt from
Mobile
Community
phone
service.
E
Revenue from Voice Mail /any
other value added service
2
Income from trading activity
(i)
Sale of handsets (Excluding
GST)
(ii)
Sale
of
accessories
etc.
(Excluding GST)
(iii)
Any
other
income/
miscellaneous
receipt
from
trading
activity.
(Excluding
GST)
(iv)
Goods & Service Tax (GST)
3
Revenue from roaming.
i.
Roaming facility revenue from
own subscribers.
ii.
Roaming revenue from own
subscriber
visiting
other
networks
including
STD/ISD/pass thru charges for
transmission of incoming call
during roaming.
iii.
Roaming Commission earned.
iv.
GST if not included above.
v.
Any
other
income/
miscellaneous
receipt
from
roaming.
4
Income from investments
(i)
Interest income
(ii)
Dividend income
(iii)
Any other miscellaneous receipt
from investments.
5
Non-refundable deposits from
subscribers
6
Revenue
from
franchisees
/resellers
including
all
commissions and discounts
etc. excluding the revenues
already included in IA&IB
7
Revenue
from
sharing/
leasing of infrastructure
8
Revenue from sale/ lease of
bandwidth, links, R&G cases,
turnkey projects etc.
9
Revenue
from
NSO
on
account
of
Roaming
UL(VNO) agreement updated up to 31.03.2024 54
calls/pass through & other
misc.
Charges
+
misc.
Revenue.
10.
Any other Income
11.
Revenue
from
Operations/
Activities other than Telecom
Operations/ Activities as well
as revenue from activities
under a license from Ministry
of
Information
and
Broadcasting
12.
Miscellaneous revenue
AA
GROSS REVENUE OF THE
Licensee COMPANY: (Add 1-
12)
BB
Less
1.
Revenue from operations other
than
telecom
activities/
operations
2.
Revenue from activities under a
license
from
Ministry
of
Information and Broadcasting
3.
Receipt from USO Fund
4.
Items of ‘Other Income’ as listed
in Annexure- VII
i.
Income from Dividend
ii.
Income from Interest
iii.
Capital Gains on account of
profit of Sale of fixed assets and
securities
iv.
Gains from Foreign Exchange
rates fluctuations
v.
Income from property rent
vi.
Insurance claims
vii.
Bad Debts recovered
viii.
Excess Provisions written back
BB
Total BB (1+2+3+4):
CC
APPLICABLE
GROSS
REVENUE (ApGR) (AA-BB)
DD
DEDUCT:
1
Charges actually paid to parent
NSO(s)
towards
applicable
access
charges
such
as
carriage charges, termination
charges and roaming charges.
2
Charges actually paid to NSO
towards
Bulk/
wholesale
bandwidth, leased line and
bandwidth charges, minutes
and SMSs.
UL(VNO) agreement updated up to 31.03.2024 55
UL(VNO) agreement updated up to 31.03.2024 55
3
Goods and Service Tax paid to
the Government.
DD
TOTAL
DEDUCTIBLE
REVENUE (1+2+3)
EE
ADJUSTED
GROSS
REVENUE (CC-DD)
REVENUE SHARE @ ------------
----- OF ADJUSTED GROSS
REVENUE
UL(VNO) agreement updated up to 31.03.2024 56
ANNEXURE-B
NORMS FOR PREPARATION OF ANNUAL FINANCIAL STATEMENTS
Accounts shall be maintained separately for each telecom service operated by the Licensee
company.
Any category of accrued revenue, the amount of which exceeds 5% of the total accrued
revenue, shall be shown separately and not combined with any other item/category.
Accrued Revenue shall indicate:
(a) All amounts billable for the period.
(b) Any billings for previous years that had been omitted from the previous years’ P&L Accounts.
(c) Any non-refundable deposits collected from the customers/franchisees to the extent these
are credited to P&L Account for the year.
Subsidiary registers/ledgers shall be maintained for each item given above so as to enable
easy verification.
Service revenue (amount billable) shall be shown gross and details of discount/rebate
indicated separately. Charges paid to NSO(s) shall be limited to applicable access charges
such as carriage charges, termination charges and roaming charges.
Security or any other Deposits taken from the subscriber shall be shown separately, for each
category, and the amount that has fallen due for refund but not yet paid also disclosed under
two categories, namely:
o
Up to 45 days
o
More than 45 days.
Service Tax billed, collected and remitted to the Government shall be shown separately.
Sales Tax billed, collected and remitted to the Government shall be shown separately.
Details of Income from sales of goods shall be furnished indicating the income and number
of items sold under each category. Method of inventory valuation used shall also be
disclosed along with computation of cost of goods sold.
Sales shall be shown gross and details of discount/rebate allowed and of sales returns shall
be shown separately.
Income from interest and dividend shall be shown separately, without any related expenses
being set-off against them on the income side of the P&L Account.
Increase/decrease of stock shall be shown separately.
Details of reversal of previous years’ debits, if any, shall be shown component-wise, under
the miscellaneous head (eg. Bad debts recovered, etc.)
Item-wise details of income that has been set off against corresponding expenditure.
Roaming Charges shall be shown under the following heads separately;
(a)
Roaming airtime charges collected for each external network from own (home)
subscribers.
(b)
Roaming airtime charges actually remitted to each external network.
(c)
Roaming commission retained (Network-wise)
(d)
Roaming commission paid (Network-wise)
(e)
Any other variable charges collected and retained/passed on to other operators,
with details.
Total Airtime Units (Metered Units) for home and visiting subscribers and unbilled
numbers (e.g. service connections) to be furnished separately.
UL(VNO) agreement updated up to 31.03.2024 57
UL(VNO) agreement updated up to 31.03.2024 57
CHAPTER-IX
INTERNET SERVICE
1.
Service Area:
The License/Authorization for Internet Service are granted for
three different Categories namely Category ‘A’, Category ‘B’ and Category ‘C’. The
Service Area for Category ‘A’ authorization shall be the National Area. The Service Area
for Category ‘B’ authorization shall be the Telecom Circle/Metro area as defined in
Annexure-IV. The Service Area for Category ‘C’ authorization shall be the Secondary
Switching Area (SSA) as defined in Annexure-VI. If the Licensee desires to obtain ISP
Category ‘C’ Authorization, under Unified License(VNO), for more than four SSAs in a
Telecom
Circle,
the
Licensee
shall
be
required
to
obtain
ISP Category ‘B’ authorization for that Service Area.
License/Authorization for Internet Service, granted for more than one Service Area
(Telecom Circle/Metro/SSA), shall be administered at each Service Area level.
2.
Scope of Internet Service: Scope of this Authorization covers the following:
2.1
(i) The Licensee may provide Internet access including IPTV. The subscriber shall
have unrestricted access to all the content available on Internet except for such content
which is restricted by the Licensor/designated authority under Law. The Licensee shall
not offer VPN/Closed User Group services to its subscribers. The content for IPTV shall
be regulated as per law in force from time to time.
(ii) The Licensee may provide Internet Telephony through Public Internet by the use of
Personal Computers (PC) or IP based Customer Premises Equipment (CPE) connecting
only the following:
a) PC to PC; within or outside India
b) PC / a device / Adapter conforming to TEC or International Standard in India to
PSTN/PLMN abroad.
c) Any device / Adapter conforming to TEC or International Standard connected to ISP
node with static IP address to similar device / Adapter; within or outside India.
Explanation: Internet Telephony is a different service in its scope, nature and kind from
real time voice service as offered by other licensees like Basic Service Licensees,
Cellular Mobile Telephone Service (CMTS) Licensees, Unified Access Service (UAS)
Licensees, Unified Licensee (Access Service), Unified Licensee with authorization for
access services.
(iii) The Internet Telephony, only as described in condition (ii) above, can be provided by
the Licensee. Voice communication to and from a telephone connected to
PSTN/PLMN/GMPCS and use of E.164 numbering is prohibited.
(iv) Addressing scheme for Internet Telephony shall conform to IP addressing Scheme
of Internet Assigned Numbers Authority (IANA) only and the same shall not use National
Numbering Scheme / plan applicable to subscribers of Basic / Cellular Telephone service.
Translation of E.164 number / private number to IP address allotted to any device and
vice versa, by the licensee to show compliance with IANA numbering scheme is not
permitted.
(v) For carrying originating and terminating traffic of its subscribers, the licensee may
establish its own transmission links within its service area. For this purpose, the Licensee
may also establish ‘Last Mile’ linkages within the service area either on fiber optic cable
UL(VNO) agreement updated up to 31.03.2024 58
or radio communication or underground copper cable, coaxial cable for cable TV subject
to applicable cable laws (The Cable Television Networks (Regulation) Act, 1995) as
modified from time to time. In case of radio links, procedure as mentioned in Chapter VII
of this License shall be applicable.
(vi)
Unified Messaging Services (UMS) within the scope of (i) to (ii) above can be
provided by the Licensee.
(vii)
The Licensee may share “passive” infrastructure namely building, tower, dark
fiber, duct space, Right of Way owned, established and operated by it under the scope
of this Authorization with other VNO Licensees.
2.2
All subscribers, except dial up subscribers, shall be within the service area.
282.3 Principle of non-discriminatory treatment, definition of specialised services
and reasonable traffic management and other exceptions:
(i)
A Licensee providing Internet Access Service shall not engage in any
discriminatory treatment of content, including based on the sender or receiver, the
protocols being used or the user equipment.
(ii)
The Licensee is prohibited from entering into any arrangement, agreement or
contact, by whatever name called, with any person, natural or legal, that has the
effect of discriminatory treatment of content.
(iii)
Nothing contained in this provision shall restrict:
a) The provision of any Specialised Service by a Licensee, provided that:
The Specialised Services are not usable or offered as a replacement for
Internet Access Service; and
The provision of the Specialised Services is not detrimental to the
availability and overall quality of Internet Access Service.
b) Any measure adopted by the Licensee that are proportionate, transient and
transparent in nature and fall under any of the following categories:
Reasonable traffic management practices as may be specified from
time to time;
Provision of emergency services or any services provided during time
of grave public emergency, as per the process laid down by the
Licensor/TRAI;
Implementation of any order of a court or direction issued by the
Government, in accordance with law;
Measures taken in pursuance of preserving the integrity and security of
the network and equipment; and
Measures taken in pursuance of an international treaty, as may be
specified by the Government.
(iv)
For the purpose of this provision:
a) “Content” shall include all content, applications, services and any other
data, including its end-point information, which can be accessed or
transmitted over the Internet.
28Amended videletter no 20-271/2010 AS-I (Vol.-III) dated 26.09.2018
UL(VNO) agreement updated up to 31.03.2024 59
UL(VNO) agreement updated up to 31.03.2024 59
b) “Discriminatory treatment” shall include any form of discrimination,
restriction or interference in the treatment of content, including practices
like blocking, degrading, slowing down or granting preferential speeds or
treatment to any content.
c) “Specialised services” shall mean services other than Internet Access
Services that are optimised for specific content, protocols or user
equipment, where the optimisation is necessary in order to meet specific
quality of service requirements.
Provided that the Licensees is authorised to provide such services in accordance with
the provisions contained in this license, as modified from time to time.
3. Financial Conditions:
293.1 Gross Revenue:
The Gross Revenue shall be inclusive of all types of revenue from Internet services,
revenue from Internet access service, revenue from internet contents, revenue from
Internet Telephony service, revenue from activation charges, revenue from sale, lease
or renting of bandwidth, links, R&G cases, Turnkey projects, revenue from IPTV service,
late fees, sale proceeds of terminal equipments, revenue on account of interest, dividend,
value added services, supplementary services, revenue from permissible sharing of
infrastructure and any other miscellaneous revenue, without any set-off for related item
of expense etc.
3.1A Applicable Gross Revenue (ApGR):
ApGR shall be equal to Gross Revenue (GR) of the licensee as reduced by the items
listed below:
(i) Revenue from operations other than telecom activities/ operations.
(ii) Revenue from activities under a license/ permission issued by Ministry of Information
and Broadcasting.
(iii) Receipts from the USO Fund.
(iv) List of other income* to be excluded from GR to arrive at ApGR
a. Income from Dividend
b. Income from Interest
c. Capital Gains on account of profit of Sale of fixed assets and securities
d. Gains from Foreign Exchange rates fluctuations
e. Income from property rent
f. Insurance claims
g. Bad Debts recovered
h. Excess Provisions written back
*Subject to conditions given in Annexure VII.
3.2
Adjusted Gross Revenue (AGR):
For the purpose of arriving at the “Adjusted Gross Revenue (AGR)”, following shall be
excluded from the Applicable Gross Revenue (ApGR):
29Amended vide letter 20-271/2010 AS-I (Vol.-V) dated 25.10.2021
UL(VNO) agreement updated up to 31.03.2024 60
a. Charges paid to its parent NSO(s) towards applicable access charges such as
carriage charges, termination charges and roaming charges;
b. Charges paid to NSOs towards Bulk/ Wholesale bandwidth, leased line and
bandwidth charges. However, these charges should be governed by a written
agreement, a copy of which must be provided along with the proof of actual
payment for the deduction to be allowed; and
c. Goods and Service Tax (GST) paid to the Government if Applicable Gross Revenue
(ApGR) had included as component of GST.
4.
Network Interconnection:
4.1
A UL (VNO) Licensee with authorization for Internet Service shall be parent to
NSO(s) only. Any Interconnection with Access Service provider, ISPs, ILDs, VSATs,
NLDs shall be through the NSO to which it is parented.
4.2
Resources required for interconnecting the licensee’s network to the network of
NSO licensed by the Licensor including time frame for provision of the same, will be
mutually agreed between the parties concerned Licensee and NSO(s).
4.3
Licensees shall use IP (Internet Protocol) in conjunction with Transmission Control
Protocol (TCP) and shall meet the interface requirements as prescribed by TEC/ Licensor
to connect with other Telecom Service Providers’ network.
5.
Provision of Service:
5.1
The Licensee shall have the right to undertake the sale, hire purchase, lease or
renting of the subscriber fixed / mobile terminals / CPE. Proper usage of terminal/CPE at
subscriber's premises shall be as per agreement between the Licensee and subscriber.
5.2 For the purpose of providing the Service, the Licensee shall install, if required, its own
suitable equipment so as to be compatible with the NSO(s) equipment
5.3
The Licensee, having DTH service License from Ministry of Information and
Broadcasting, shall be permitted to allow customers for downloading internet data
through DTH.
5.4
It will be the responsibility of the Licensee to obtain IP addresses, domain name,
etc. from NSO(s).
6.
Requirement to furnish information:
6.1
The licensee shall provide to the licensor, a quarterly report indicating the details
of Internet Service Nodes or Points of Presence with their locations and number of
broadband / leased / dial up subscribers. In case new nodes are to be installed, one
month prior notice is required to be given to the licensor.
UL(VNO) agreement updated up to 31.03.2024 61
UL(VNO) agreement updated up to 31.03.2024 61
7.
Security Conditions:
7.1
The list of Internet Lease Line (ILL) customers is to be placed on a password
protected website in the following Performa:-
Name
of
Subscriber
IP address
allotted
Bandwidth
provided
Address of
Installation
Date
of
Installation/
Commissioning
Contact
person with
Phone /e-
mail
The Licensee shall advice its ILL customers to maintain the usage of IP
addresses/Network Address Translation (NAT) syslog, in case of multiple users on the
same ILL, for a minimum period of one year. The Licensee shall ensure compliance of
the above requirement by taking periodic feedback from the ILL customers or shall take
any other measures as necessary for compliance of this requirement. In case, the
Licensee finds that ILL customer is non-compliant to the above requirement, the Licensee
shall withdraw the service.
7.2
The login ID/ Password shall be provided to concerned DDG of LSA field Unit of
DoT. Online updating of ILL customers’ data by Licensees should be done. This
information shall be accessible to authorized Government agencies.
7.3
Periodical inspections are to be carried out at the premises of ILL customers to
check possible misuse and possible interconnection of Internet leased line with PSTN,
PLMN, GMPCS network. First inspection at the premises of the customer must be done
within 15 days of commissioning of Internet leased line.
7.4
A record of complete network diagram of set up at each of the ILL customer
premises along with details of connectivity shall be available at the site. All details of other
communications links (PSTN, NLD, ILD, WLL, GSM, other ISP, etc.) and reasons for
taking the link by the customer to be recorded before activation of the link. The same
shall also be readily available for inspection at the respective premises of all ILL
customers.
7.5
An agreement shall be executed with each ILL customer which clearly mentions
the activities that are prohibited.
7.6
Licensee shall ensure that an entity, requesting ILL connection to use it for
provision of Internet services to its (entity’s) customers, should have a valid authorization
for Internet Service.
7.7
All the terms and conditions related to ILL under this authorization shall also apply
to the Internet Service provided through VSAT.
7.8
In case Licensee detects the misuse of Internet Leased Line, the Licensee shall
take immediate action to disconnect the service to this subscriber and file an FIR against
the subscriber. The Licensee shall intimate the Licensor of such misuse within 24 hours
of detection of the same. In case such a misuse is detected by the Licensor, the onus
shall lie on the Licensee to prove that it had not connived in the misuse by its ILL
subscriber and has taken all the above mentioned steps to check the misuse of ILL.
Wherever it is found that the Licensee has itself been involved in/abetted the misuse of
ILL, it shall be construed as breach of terms and conditions of the license agreement.
UL(VNO) agreement updated up to 31.03.2024 62
7.9
The traffic of Internet nodes on places of security importance would be routed as
per directions issued from time to time by Licensor. Interconnection of these nodes to
other nodes within the country directly is not permitted.
UL(VNO) agreement updated up to 31.03.2024 63
UL(VNO) agreement updated up to 31.03.2024 63
Annexure-A
(Proforma for Affidavit regarding details of calculation of “Revenue” and “License Fee”)
AFFIDAVIT
I ……………………………….., aged about ………….. years son of Shri …………………,
resident of ………………………………………………., do solemnly affirm and state as
under:
1.
That I am …………… …………………….of ………………………… (Name of the
Company),
Licensee
of
……………………………………….
Service
in
…………………………..Service Area and I am duly authorised by the resolutions dated
…………………………. passed by Board of Directors of the Company to furnish affidavit
on behalf of ………………………….( Name of the Company).
2.
That in compliance of Condition No.. ………. of Schedule…………..Part ……….
the License Agreement No. ……………………… signed between the Company and the
Department of Telecommunications, for payment of License fee, a payment of Rs.
………………….. (Rupees ………. ………………………. is being made for the period
………………….. to ………………………….. . The details of calculation of ‘Revenue’
and License fee is as per Appendix-II …… (attached).
3.
That the contents in para 2 & 3 and Statement made in Annexure ___ are true and
correct to the best of my knowledge, based on the records of the company.
Deponent.
Verification:
Verified at ___________ on ___________ that the contents of paragraphs 1 to 3
of this Affidavit and attached ‘Statement of Revenue and License Fee’ as Annexure are
true and correct to the best of my knowledge, no part of it is false and nothing has been
concealed therefrom.
Deponent
UL(VNO) agreement updated up to 31.03.2024 64
.Appendix–I to Annexure-A
(Format of Auditor’s Report on Statement of Revenue and License Fee)
To
The Board of Directors
……………………….
……………………….
We have examined the attached Statement of Revenue and License Fee of
………………………………………(the name of the operators) for the quarter(s) ending
_____________. We have also examined the reconciliation of the cumulative figures
for the quarter(s) ending _________ appearing in the Statement of Revenue and License
Fee of the company with the figures appearing in the profit and loss account of the
company for the year ended_________ which was audited by us. We understand that
the aforesaid statement(s) ( and the reconciliation) is /are to be furnished to the Central
Government for assessment of the License fee payable by the company to the
Government, in terms of the License agreement No…………………. signed between the
company and the Department of Telecommunications.
We report that:
1.
We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
2.
In our view, the company has an adequate internal control system in relation to
revenues which is commensurate with its size and the nature of its business. The
system, in our opinion, provides reasonable assurance that there is no unrecorded
revenue and that all revenue is recorded in the proper amount and in the proper
period.
3.
No amounts paid/payable in respect of sales tax, service tax were outstanding at
the last day of the quarter(s) for a period of more than two months from the date
they became payable, except for the following:………
4.
In our opinion and to the best of our knowledge and belief and according to the
explanations given to us, the Statement has been prepared in accordance with
the norms/guidelines contained in the said License agreement in this behalf and
gives a true and fair view of the revenue and License fee paid/payable for the
period computed on the basis of the aforesaid guidelines except for the following:
*
Strike off wherever not applicable.
(Signature)
UL(VNO) agreement updated up to 31.03.2024 65
UL(VNO) agreement updated up to 31.03.2024 65
APPENDIX–II TO ANNEXURE-A
30Format of Statement of Revenue and License Fee_____________(Name and
address of operator) in______________( Service Area)
Statement of Revenue and License Fee for the Quarter ……..…………of the
financial year……………..
(AMOUNT IN RUPEES)
S.No
.
PARTICULARS
ACTUALS
FOR
THE
PREVIOUS
QUARTER
ACTUALS
FOR THE
CURRENT
QUARTER
CUMULATIVE
UPTO THE
CURRENT
QUARTER.
1
Revenue from services
A
Revenue from Pure Internet
Service ( Internet Access
and Content Service):
A1.
Post paid options:
i.
Rentals
ii.
Activation Charges
iii.
Goods & Service Tax (GST)
iv.
Service charges
v.
Charges on account of any
other value added services.
Supplementary Services etc.
vi.
Any
other
income/
miscellaneous receipt from
post paid options.
A2.
Pre-paid options:
i.
Sale
of
pre-paid
option
including full value of all
components charged therein.
ii.
Any
other
income/
miscellaneous receipt from
pre-paid options.
B
Revenue from Internet
Telephony Service:
B1.
Post paid options:
i.
Rentals
ii.
Activation Charges
iii.
Goods & Service Tax (GST)
iv.
Service charges
v.
Charges on account of any
other value added services.
Supplementary Services etc.
vi.
Any
other
income/
miscellaneous receipt from
post paid options.
30 Amendment vide DoT letter no. 20-271/2010-AS-I(Vol.V) dated 25th October, 2021
UL(VNO) agreement updated up to 31.03.2024 66
B2.
Pre-paid options:
i.
Sale
of
pre-paid
option
including full value of all
components charged therein.
ii.
Any
other
income/
miscellaneous receipt from
pre-paid options.
C
Revenue from any other
value added service
2
Income from trading activity
(all including of Goods &
Service Tax)
i.
Sale of Terminal Equipments
ii.
Sale of accessories etc.
iii.
Any
other
income/
miscellaneous receipt from
trading activity.
3
Income from investments
i.
Interest income
ii.
Dividend income
iii.
Any
other
miscellaneous
receipt from investments.
4
Non-refundable
deposits
from subscribers
5
Revenue from franchisees
/resellers
including
all
commissions and discounts
etc. excluding the revenues
already included in IA&IB
6
Revenue
from
sharing/
leasing of infrastructure
7
Revenue from sale/ lease
renting of bandwidth, links,
R&G
cases,
turnkey
projects etc.
8
Revenue
from
NSO
on
account
of
Roaming
calls/pass through charges
& other Charges.
ii.
GST if not included above.
iii.
Any
other
income/
miscellaneous receipt from
roaming
9
Any other INCOME
UL(VNO) agreement updated up to 31.03.2024 67
UL(VNO) agreement updated up to 31.03.2024 67
10
Revenue
from
IPTV
Services
11
Revenue paid by NSO to
Licensee + Miscellaneous
Revenue
12
Revenue from Operations/
Activities
other
than
Telecom
Operations/
Activities as well as revenue
from
activities
under
a
license from Ministry of
Information
and
Broadcasting
AA
GROSS REVENUE OF THE
Licensee COMPANY :(Add
1-12)
BB
Less
1.
Revenue
from
operations
other than telecom activities/
operations
2.
Revenue from activities under
a license from Ministry of
Information and Broadcasting
3.
Receipt from USO Fund
4.
Items of ‘Other Income’ as
listed in Annexure- VII
i.
Income from Dividend
ii.
Income from Interest
iii.
Capital Gains on account of
profit of Sale of fixed assets
and securities
iv.
Gains from Foreign Exchange
rates fluctuations
v.
Income from property rent
vi.
Insurance claims
vii.
Bad Debts recovered
viii.
Excess
Provisions
written
back
BB
Total BB (1+2+3+4):
CC
APPLICABLE
GROSS
REVENUE (ApGR) (AA-BB)
DD
Less:
1
Goods
and
Service
Tax
paid/payable
to
the
Government
2
Charges
actually
paid
to
parent
NSO(s)
towards
applicable access charges
UL(VNO) agreement updated up to 31.03.2024 68
such as carriage charges,
termination
charges
and
roaming charges
3
Charges actually paid to NSO
towards
Bulk/
wholesale
bandwidth, leased line and
bandwidth charges.
DD
TOTAL
DEDUCTIBLE
REVENUE (1+2+3)
EE
ADJUSTED
GROSS
REVENUE (CC-DD)
REVENUE SHARE @ ---------
--------
OF
ADJUSTED
GROSS REVENUE
UL(VNO) agreement updated up to 31.03.2024 69
UL(VNO) agreement updated up to 31.03.2024 69
Annexure-B
NORMS FOR PREPARATION OF ANNUAL FINANCIAL STATEMENTS
Accounts shall be maintained separately for each telecom service operated by the
Licensee Company.
Any category of accrued revenue, the amount of which exceeds 5% of the total
accrued revenue, shall be shown separately and not combined with any other
item/category.
Accrued Revenue shall indicate:
a)
All amounts billable for the period.
b)
Any billings for previous years that had been omitted from the previous years’
P&L Accounts.
c)
Any non-refundable deposits collected from the customers/franchisees to the
extent these are credited to P&L Account for the year.
Subsidiary registers/ledgers shall be maintained for each item given above so as to
enable easy verification.
Service revenue (amount billable) shall be shown gross and details of discount/rebate
indicated separately. Charges paid to NSO(s) shall be limited to applicable access charges
such as carriage charges, termination charges and roaming charges.
Security or any other Deposits taken from the subscriber shall be shown separately, for
each category, and the amount that has fallen due for refund but not yet paid also disclosed
under two categories, namely:
o
Up to 45 days
o
More than 45 days.
Service Tax billed, collected and remitted to the Government shall be shown separately.
Sales Tax billed, collected and remitted to the Government shall be shown separately.
Details of Income from sales of goods shall be furnished indicating the income and
number of items sold under each category. Method of inventory valuation used shall also
be disclosed along with computation of cost of goods sold.
Sales shall be shown gross and details of discount/rebate allowed and of sales returns
shall be shown separately.
Income from interest and dividend shall be shown separately, without any related
expenses being set-off against them on the income side of the P&L Account.
Increase/decrease of stock shall be shown separately.
Details of reversal of previous years’ debits, if any, shall be shown component-wise,
under the miscellaneous head (eg. Bad debts recovered, etc.)
Item-wise details of income that has been set off against corresponding expenditure.
UL(VNO) agreement updated up to 31.03.2024 70
CHAPTER-X
NATIONAL LONG DISTANCE SERVICE
Service Area: The Service Area for the National Long Distance Service shall be at
National Level.
2. Scope of the NLD Service: Scope of this Authorization covers the following:
2.1(a) A UL (VNO) Licensee with authorization for NLD shall be parent to NSO(s) only.
(b) The Licensee may pickup, carry and deliver to NSO(NLDO) for further carriage &
termination.
(c)
The Licensee can provide Leased Circuit / Virtual Private Network (VPN) Services
by using infrastructure of its parent NSO.
(d)
Further, only for provision of national long distance voice service through Calling
Cards, falling within the scope of, and, in accordance with clauses 2.1 (a) and 2.1(b)
above, the Licensee can access the subscribers directly.
2.2(i) The Licensee may share “passive” infrastructure namely building, tower, dark
fiber, duct space, Right of Way owned, established and operated by it under the scope
of this Authorization with other Licensees.
2.3(i) Access to the subscribers for provision of National Long Distance voice services
(excluding message services) through Calling Cards shall be strictly within the scope of
and in accordance with clauses 2.1(a) to 2.1(c) above. Provision of other Intelligent
Network based services (except Intelligent Network service for operation of Calling
Cards) such as tele-voting and toll-free services is not allowed to Licensee. Provision of
Value Added Services such as SMS/ MMS, ringtones, etc. through calling cards is also
not allowed.
2.3(ii) The charges and sharing of revenues for the service features, network architecture
and resources used for providing NLD voice services through calling cards shall be such
as are mutually agreed between the service providers within the framework of and in
accordance with regulations, directions, orders or instructions as may be issued from
time to time by TRAI and directions, orders or instructions as may be issued from time to
time by the Licensor.
2.3(iii) The licensee shall clearly indicate to the subscriber the specifications of the
service to be offered through Calling Cards at the time of entering into contract with such
subscriber.
UL(VNO) agreement updated up to 31.03.2024 71
UL(VNO) agreement updated up to 31.03.2024 71
3.
Financial Conditions:
313.1 Gross Revenue
Gross revenue shall be inclusive of total revenue accruing to the licensee by way of
providing service by parenting to NLD (NSOs) including the revenue on account of
supplementary/ value added services, leasing of infrastructure, interest, dividend,
revenue earned from parent NSOs, revenue from permissible sharing of infrastructure
and any other miscellaneous revenue, without any set off for related item of expense etc.
3.1A Applicable Gross Revenue (ApGR):
ApGR shall be equal to Gross Revenue (GR) of the licensee as reduced by the items
listed below:
(i) Revenue from operations other than telecom activities/ operations.
(ii) Revenue from activities under a license/ permission issued by Ministry of Information
and Broadcasting.
(iii) Receipts from the USO Fund.
(iv) List of other income* to be excluded from GR to arrive at ApGR
a. Income from Dividend
b. Income from Interest
c. Capital Gains on account of profit of Sale of fixed assets and securities
d. Gains from Foreign Exchange rates fluctuations
e. Income from property rent
f. Insurance claims
g. Bad Debts recovered
h. Excess Provisions written back
*Subject to conditions given in Annexure VII.
3.2
Adjusted Gross Revenue (AGR):
For the purpose of arriving at the “Adjusted Gross Revenue (AGR)”, following shall be
excluded from the Applicable Gross Revenue (ApGR):
a. Charges paid to its parent NSO(s) towards applicable access charges such as
carriage charges, termination charges and roaming charges;
b. Charges paid to NSOs towards Bulk/Wholesale bandwidth, leased line and
bandwidth charges, minutes and SMSs. However, these charges should be
governed by a written agreement, a copy of which must be provided along with the
proof of actual payment for the deduction to be allowed; and
c. Goods and Service Tax (GST) paid to the Government if Applicable Gross Revenue
(ApGR) had included as component of GST.
31 Amended vide letter no. 20-271/2010 AS-I (Vol.-V) dated 25.10.2021
UL(VNO) agreement updated up to 31.03.2024 72
4.
Network Interconnection:
4.1
A UL (VNO) Licensee with authorization for NLD shall be parent to NSO(s) only.
Any Interconnection with Access Service provider, ISPs, ILDs, VSATs, NLDs shall be
through the NSO(s) to which it is parented.
5. Technical Conditions
325.1 A Licensee having license/authorizations for both Commercial VSAT CUG Service
and NLD Service is permitted to share VSAT Hub for the purpose of providing
authorized services.
32Appended vide letter no. 20-271/2010 AS-I (Vol.-III) dated 23.09.2021
UL(VNO) agreement updated up to 31.03.2024 73
UL(VNO) agreement updated up to 31.03.2024 73
Annexure-A
(Proforma for Affidavit regarding details of calculation of “Revenue” and “License Fee”)
AFFIDAVIT
I ……………………………….., aged about ………….. years son of Shri …………………,
resident of ………………………………………………., do solemnly affirm and state as
under:
1.
That I am …………… …………………….of ………………………… (Name of the
Company),
Licensee
of
……………………………………….
Service
in
…………………………..Service Area and I am duly authorised by the resolutions dated
…………………………. passed by Board of Directors of the Company to furnish affidavit
on behalf of ………………………….( Name of the Company).
2.
That in compliance of condition No.. ………. of Schedule…………..Chapter
………. and Annexure………of the License Agreement No. ……………………… signed
between the Company and the Department of Telecommunications, for payment of
License fee, a payment of Rs. ………………….. (Rupees ………. ……………………….
is being made for the period ………………….. to ………………………….. . The details
of calculation of ‘Revenue’ and License fee is as per Annexure …………… (attached).
3.
That the contents in para 1 & 2 and Annexure – A are true and correct to the best
of my knowledge, based on the records of the company.
Deponent.
VERIFICATION
Verified at ………………….. on ……………………….. that the contents of paragraphs 1
to 3 of the affidavit and Annexure- A are true and correct to my knowledge, no part of it
is false and nothing has been concealed therefrom.
Deponent.
UL(VNO) agreement updated up to 31.03.2024 74
Appendix-I to Annexure-A
Format of Auditor’s Report on Statement of Revenue and License Fee
To
The Board of Directors
……………………….
……………………….
We have examined the attached Statement of Revenue and License Fee of
____________________________________________________(the
name
of
the
operators) for the quarter(s) ending _____________. We have also examined the
reconciliation of the cumulative figures for the quarter(s) ending _______________
appearing in the Statement of Revenue and License Fee of the company with the figures
appearing in the profit and loss account of the company for the year
ended________________which was audited by us. We understand that the aforesaid
statement(s) (and the reconciliation) is / are to be furnished to the Central Government
for assessment of the License fee paid/payable by the company to the Government, in
terms of the License Agreement No___________________________________ signed
between the company and the Department of Telecommunications. We report that:
1.
We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
2.
In our view, the company has an adequate internal control system in relation to
revenues which is commensurate with its size and the nature of its business. The
system, in our opinion, provides reasonable assurance that there is no unrecorded
revenue and that all revenue is recorded in the proper amount and in the proper
period.
3.
No amounts paid/payable in respect of sales tax, service tax or PSTN/toll/roaming
charges were outstanding at the last day of the quarter(s) for a period of more than
two
months
from
the
date
they
became
payable,
except
for
the
following:_______________________
4.
In our opinion and to the best of our knowledge and belief and according to the
explanations given to us, the Statement has been prepared in accordance with
the norms/guidelines contained in the said License agreement in this behalf and
gives a true and fair view of the revenue and License fee paid/payable for the
period computed on the basis of the aforesaid guidelines except for the following:
(Seal and Signature )
Place & Date
*
Strike off wherever not applicable.
UL(VNO) agreement updated up to 31.03.2024 75
UL(VNO) agreement updated up to 31.03.2024 75
Appendix-II to Annexure-A
33Format of Statement of Revenue and License Fee _______ (Name and address
of operator) VNO - NATIONAL LONG DISTANCE SERVICE
Statement of Revenue and License Fee for the Quarter……of the financial year…..
(AMOUNT IN RUPEES)
S.N
.
PARTICULARS
ACTUALS
FOR
THE
PREVIOUS
QUARTER
ESTIMATED
FOR
THE
CURRENT
QUARTER
CUMULATIV
E
UPTO
THE
PREVIOUS
QUARTER
1.
Revenue from Services:
i.
Revenue from provisioning of
VNO (NLD) service
ii.
Revenue
from
supplementary/value
added
services.
iii.
Goods & Service Tax (GST)
iv.
Any other income/ miscellaneous
receipt.
1(a) Revenue from calling cards
i.
Revenue from sale of calling cards
ii.
Any other income/Miscellaneous
receipt from Calling Cards
iii.
Goods & Service Tax (GST)
2.
Income from investments.
i.
Interest income
ii.
Dividend income
iii.
Any other miscellaneous receipt
from investments.
3.
Non-refundable deposits.
4.
Revenue from sharing/ leasing
of other infrastructure
5.
Revenue
from
Operations/
Activities other than Telecom
Operations/ Activities as well as
revenue from activities under a
license
from
Ministry
of
Information and Broadcasting
6.
Miscellaneous revenue.
AA
GROSS
REVENUE
OF
THE
Licensee COMPANY (Add 1- 6):
33 Amendment vide DoT letter no. 20-271/2010-AS-I(Vol.V) dated 25th October, 2021
UL(VNO) agreement updated up to 31.03.2024 76
BB
Less
1.
Revenue from operations other
than telecom activities/ operations
2.
Revenue from activities under a
license
from
Ministry
of
Information and Broadcasting
3.
Receipt from USO Fund
4.
Items of ‘Other Income’ as listed in
Annexure- VII
i.
Income from Dividend
ii.
Income from Interest
iii.
Capital Gains on account of profit
of Sale of fixed assets and
securities
iv.
Gains from Foreign Exchange
rates fluctuations
v.
Income from property rent
vi.
Insurance claims
vii.
Bad Debts recovered
viii.
Excess Provisions written back
BB
Total BB (1+2+3+4):
CC
APPLICABLE
GROSS
REVENUE (ApGR) (AA-BB)
DD
Less:
1.
Charges actually paid to parent
NSO(s) (NLD) towards applicable
access charges such as carriage
charges, termination charges and
roaming charges.
2.
Charges actually paid to NSO
towards
Bulk/
wholesale
bandwidth,
leased
line
and
bandwidth charges, minutes and
SMSs.
3.
Good and Service Tax paid to the
Government.
DD
TOTAL DEDUCTIBLE REVENUE
(1+2+3)
EE
ADJUSTED GROSS REVENUE:
(CC-DD)
REVENUE
SHARE
@……………OF
ADJUSTED
GROSS REVENUE:
UL(VNO) agreement updated up to 31.03.2024 77
UL(VNO) agreement updated up to 31.03.2024 77
Annexure – B
NORMS FOR PREPARATION OF ANNUAL FINANCIAL STATEMENTS
Accounts shall be maintained separately for each telecom service operated by the
Licensee company.
Any category of accrued revenue, the amount of which exceeds 5% of the total
accrued revenue, shall be shown separately and not combined with any other
item/category.
Accrued Revenue shall indicate:
(a)
All amounts billable for the period.
(b)
Any billings for previous years that had been omitted from the previous years’
P&L Accounts.
(c)
Any non-refundable deposits collected from the customers/franchisees to the
extent these are credited to P&L Account for the year.
Subsidiary registers/ledgers shall be maintained for each item given above so as to
enable easy verification.
Service revenue (amount billable) shall be shown gross and details of discount/rebate
indicated separately. Charges paid to NSO(s) shall be limited to applicable access charges
such as carriage charges, termination charges and roaming charges.
Security or any other Deposits taken from the subscriber shall be shown separately,
for each category, and the amount that has fallen due for refund but not yet paid also
disclosed under two categories, namely:
o
Up to 45 days
o
More than 45 days.
Service Tax billed, collected and remitted to the Government shall be shown separately.
Sales Tax billed, collected and remitted to the Government shall be shown separately.
Details of Income from sales of goods shall be furnished indicating the income and
number of items sold under each category. Method of inventory valuation used shall also
be disclosed along with computation of cost of goods sold.
Sales shall be shown gross and details of discount/rebate allowed and of sales returns
shall be shown separately.
Income from interest and dividend shall be shown separately, without any related
expenses being set-off against them on the income side of the P&L Account.
Increase/decrease of stock shall be shown separately.
Details of reversal of previous years’ debits, if any, shall be shown component-wise,
under the miscellaneous head (e.g. Bad debts recovered, etc.)
Item-wise details of income that has been set off against corresponding expenditure.
UL(VNO) agreement updated up to 31.03.2024 78
CHAPTER-XI
INTERNATIONAL LONG DISTANCE SERVICE
1.
Service Area:
The Service Area for the International Long Distance Service
shall be at National Level.
2.
Scope of ILD Service: Scope of this Authorization covers the following:
2.1(i) The Licensee may share “passive” infrastructure namely building, tower, dark
fiber, duct space, Right of Way owned, established and operated by it under the scope
of this Authorization with other Licensees.
2.2(i) Further, the Licensee may also access the subscribers directly for provision of
international long distance voice service only through calling cards.
(ii)The charges and sharing of revenues for the service features, network architecture
and resources used for providing ILD voice services through calling cards shall be such
as are mutually agreed between the service providers within the framework of and in
accordance with regulations/directions/orders/ instructions that may be issued from time
to time by TRAI/Licensor.
(iii)
The licensee shall clearly indicate to the subscriber the specifications of the
service to be offered through Calling Cards at the time of entering into contract with such
subscriber.
3.
Financial Conditions:
3.1 Gross Revenue:
The Gross Revenue shall include all revenues accruing to the Licensee on
account of goods supplied, services provided, leasing of infrastructure, use of its
resources by others, application Fee, installation charges, call charges, late Fees, sale
proceeds of instruments (or any terminal equipment including accessories), handsets,
bandwidth, income from Value Added Services, supplementary services, access or
interconnection charges, any lease or rent charges for hiring of infrastructure, etc. and
any other miscellaneous items including interest, dividend, etc. without any set off of
related items of expense, etc.
3.1A Applicable Gross Revenue (ApGR):
ApGR shall be equal to Gross Revenue (GR) of the licensee as reduced by the items
listed below:
(i) Revenue from operations other than telecom activities/ operations.
(ii) Revenue from activities under a license/ permission issued by Ministry of
Information and Broadcasting.
(iii) Receipts from the USO Fund.
(iv) List of other income* to be excluded from GR to arrive at ApGR
a. Income from Dividend
b. Income from Interest
UL(VNO) agreement updated up to 31.03.2024 79
UL(VNO) agreement updated up to 31.03.2024 79
c. Capital Gains on account of profit of Sale of fixed assets and securities
d. Gains from Foreign Exchange rates fluctuations
e. Income from property rent
f. Insurance claims
g. Bad Debts recovered
h. Excess Provisions written back
*Subject to conditions given in Annexure VII.
3.2
Adjusted Gross Revenue:
For the purpose of arriving at the “Adjusted Gross Revenue (AGR)”, following shall
be excluded from the Applicable Gross Revenue (ApGR):
a. Charges paid to its parent NSO(s) towards applicable access charges such as
carriage charges, termination charges and roaming charges.
b. Charges paid to NSOs towards Bulk/Wholesale bandwidth, leased line and
bandwidth charges, minutes and SMSs. However, these charges should be
governed by a written agreement, a copy of which must be provided along with
the proof of actual payment for the deduction to be allowed.
c. Goods and Service Tax (GST) paid to the Government if Applicable Gross
Revenue (ApGR) had included as component of GST.
4.
Network Interconnection:
4.1
A UL (VNO) Licensee with authorization for ILD shall be parent to NSO(s) only.
Any Interconnection with Access Service providers, ISPs, ILDOs, VSAT Operators,
NLDOs shall be through the NSO to which it is parented.
UL(VNO) agreement updated up to 31.03.2024 80
Annexure-A
(Proforma for Affidavit regarding details of calculation of “Revenue” and “License Fee”)
AFFIDAVIT
I …………………….. ……………………. Aged about …………. Years son of Shri
……………………………………..
resident
of
………………………….
……………
……………………… ……………………….. do solemnly affirm and state as under:
1.
That I am ………….. …………………………… of …………… ………… (Name of
the Company), Licensee of ……………….. …………. Service and I am duly authorized
by the resolutions dated ……………… ……… passed by Board of Directors of the
Company to furnish affidavit on behalf of …………….. …………………. (Name of the
Company).
2.
That in compliance of condition No. .. …………….. of schedule …….. …….
Chapter ………. and ANNEXURE ………… of the LICENSE AGREEMENT No.
………………. ……………….. signed between the Company and the Department of
Telecommunications, for payment of License Fee, a payment of Rs ……………….
(Rupees ……………….. )is being made for the period ………………. to ………………...
3.
The details of calculation of ‘Revenue’ and License Fee is as per ANNEXURE …
… (attached).
That the contents in para 1 & 2 and ANNEXURE are true and correct to the best of my
knowledge, based on the records of the company.
Deponent
VERIFICATION
Verified at ………………. ………………..on ………………. ……………….. that the
contents of paragraphs 1 to 3 of the affidavit and ANNEXURE are true and correct to my
knowledge, no part of it is false and nothing has been concealed here from.
Deponent
UL(VNO) agreement updated up to 31.03.2024 81
UL(VNO) agreement updated up to 31.03.2024 81
Appendix-I to Annexure- A
Format of AUDITOR’s Report on State of Revenue and License Fee
To
The Board of Directors,
……………………….
……………………….
We have examined the attached Statement of Revenue and License Fee of
………………………. ………………………. (the name of the OPERATORs) for the
quarter(s) ending ………………………. . We have also examined the reconciliation of
the cumulative figures for the quarter(s) ending ………………………. appearing in the
Statement of Revenue and License Fee of the company with the figures appearing in the
profit and loss account of the company for the year ended ………………………. which
was audited by us. We understand that the aforesaid statement(s) (and the
reconciliation) is / are to be furnished to the Central Government for assessment of the
License Fee paid/payable by the company to the Government, in terms of the License
AGREEMENT No. ……………………… signed between the company and the
Department of Telecommunications. We report that:
We have obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purpose of our audit.
In our view, the company has an adequate internal control system in relation to revenues
which is commensurate with its size and the nature of its business. The system, in our
opinion, provides reasonable assurance that there is no unrecorded revenue and that all
revenue is recorded in the proper amount and in the proper period.
No amounts paid/payable in respect of sales tax, service tax or PSTN/ toll/roaming
charges were outstanding at the last day of the quarter(s) for a period of more than two
months from the date they became payable, except for the following: ……………………
In our opinion and to the best of our knowledge and belief and according to the
explanations given to us, the Statement has been prepared in accordance with the
norms/ guidelines contained in the said LICENSE AGREEMENT in this behalf and gives
a true and fair view of the revenue and License Fee paid/payable for the period computed
on the basis of the aforesaid guidelines except for the following:
( Seal and Signature )
Place & Date
* Strike off wherever not applicable.
UL(VNO) agreement updated up to 31.03.2024 82
Appendix-II to Annexure-A
34Format of Statement of Revenue and License Fee ---------------------- (Name and
address of operator) VNO-INTERNATIONAL LONG DISTANCE SERVICE
Statement of revenue and License Fee for the Quarter ------of the financial year----
(Amount in Rupees)
S.N.
PARTICULARS
ACTUALS
FOR
THE PREVIOUS
QUARTER
CUMULATIVE UPTO
THE
PREVIOUS
QUARTER.
1.
Revenue from traffic
A
Revenue from subscriber of ILD
calling cards & any other income
/miscellaneous receipt from calling
cards.
i.
Goods & Service Tax (GST)
ii.
Service charges
iii.
Charges on account of any other
value added services, Supplementary
Services etc.
iv.
Any other income / miscellaneous
receipt.
2.
Income from investments (made on
the strength of this License)
i.
Interest income
ii.
Dividend income
iii.
Any other miscellaneous receipt from
investments.
3.
Revenue from franchisees
4.
Revenue from sharing/ leasing of
infrastructure
5.
Revenue
from
sale/
lease
of
bandwidth,
links,
R&G
cases,
turnkey projects etc.
6.
Revenue
from
Operations/
Activities
other
than
Telecom
Operations/ Activities as well as
revenue from activities under a
license
from
Ministry
of
Information and Broadcasting
7.
Any other revenue
8.
Miscellaneous revenue
34 Amendment vide DoT letter no. 20-271/2010-AS-I(Vol.V) dated 25th October, 2021
UL(VNO) agreement updated up to 31.03.2024 83
UL(VNO) agreement updated up to 31.03.2024 83
AA
GROSS
REVENUE
OF
THE
Licensee COMPANY: (Add 1-8)
BB
Less
1.
Revenue from operations other than
telecom activities/ operations
2.
Revenue from activities under a
license from Ministry of Information
and Broadcasting
3.
Receipt from USO Fund
4.
Items of ‘Other Income’ as listed in
Annexure- VII
i.
Income from Dividend
ii.
Income from Interest
iii.
Capital Gains on account of profit of
Sale of fixed assets and securities
iv.
Gains from Foreign Exchange rates
fluctuations
v.
Income from property rent
vi.
Insurance claims
vii.
Bad Debts recovered
viii.
Excess Provisions written back
BB
Total BB (1+2+3+4):
CC
APPLICABLE GROSS REVENUE
(ApGR) (AA-BB)
DD
Less:
1
Charges actually paid to parent
NSO(s) towards applicable access
charges such as carriage charges,
termination charges and roaming
charges.
2
Charges actually paid to NSO towards
Bulk/ wholesale bandwidth, leased
line and bandwidth charges, minutes
and SMSs.
3
Goods and Service Tax paid to the
Government
DD
TOTAL
DEDUCTIBLE
REVENUE(1+2+3)
EE
ADJUSTED GROSS REVENUE (CC-
DD)
REVENUE SHARE @ -----------------
OF ADJUSTED GROSS REVENUE
UL(VNO) agreement updated up to 31.03.2024 84
Annexure – B
NORMS FOR PREPARATION OF ANNUAL FINANCIAL STATEMENTS
Accounts shall be maintained separately for each telecom service operated by the
Licensee Company.
Any category of accrued revenue, the amount of which exceeds 5% of the total
accrued revenue, shall be shown separately and not combined with any other
item/category.
Accrued Revenue shall indicate:
a) All amounts billable for the period.
b)
Any billings for previous years that had been omitted from the previous years’ P&L
Accounts.
c)
Any non-refundable deposits collected from the customers/franchisees to the
extent these are credited to P&L Account for the year.
Subsidiary registers/ledgers shall be maintained for each item given above so as to
enable easy verification. Service revenue (amount billable) shall be shown gross and
details of discount/rebate indicated separately. Charges paid to NSO(s) shall be limited
to applicable access charges such as carriage charges, termination charges and roaming
charges.
Security or any other Deposits taken from the subscriber shall be shown separately,
for each category, and the amount that has fallen due for refund but not yet paid also
disclosed under two categories, namely:
o
Up to 45 days
o
More than 45 days.
Service Tax billed, collected and remitted to the Government shall be shown separately.
Sales Tax billed, collected and remitted to the Government shall be shown separately.
Details of Income from sales of goods shall be furnished indicating the income and
number of items sold under each category. Method of inventory valuation used shall also
be disclosed along with computation of cost of goods sold.
Sales shall be shown gross and details of discount/rebate allowed and of sales returns
shall be shown separately.
Income from interest and dividend shall be shown separately, without any related
expenses being set-off against them on the income side of the P&L Account.
Increase/decrease of stock shall be shown separately.
Details of reversal of previous years’ debits, if any, shall be shown component-wise,
under the miscellaneous head (e.g. Bad debts recovered, etc.)
Item-wise details of income that has been set off against corresponding expenditure.
UL(VNO) agreement updated up to 31.03.2024 85
UL(VNO) agreement updated up to 31.03.2024 85
CHAPTER-XII
GLOBAL MOBILE PERSONAL COMMUNICATION BY SATELLITE SERVICE
1.
Service Area:
The Service Area for Global Mobile Personal Communication
by Satellite (GMPCS) Service shall be at National Level.
2.
Scope of the GMPCS Service: Scope of this Authorization covers the following:
2.1
The licensee may provide, in its area of operation, all types of mobile services
including voice and non-voice messages, data services using NSO’s GMPCS gateway
utilizing any type of network equipment including circuit and/or packet switches.
3.
Financial Conditions:
353.1 Gross Revenue:
The Gross Revenue shall be inclusive of installation charges, late fees, sale proceeds of
handsets (or any other terminal equipment, etc.), revenue on account of interest,
dividend, value added services, supplementary services, revenue from parent NSO,
revenue from permissible sharing of infrastructure and any other miscellaneous revenue,
without any set-off for related item of expense, etc.
3.1A Applicable Gross Revenue (ApGR):
ApGR shall be equal to Gross Revenue (GR) of the licensee as reduced by the items
listed below:
(i) Revenue from operations other than telecom activities/ operations.
(ii) Revenue from activities under a license/ permission issued by Ministry of
Information and Broadcasting.
(iii) Receipts from the USO Fund.
(iv) List of other income* to be excluded from GR to arrive at ApGR
a. Income from Dividend
b. Income from Interest
c. Capital Gains on account of profit of Sale of fixed assets and securities
d. Gains from Foreign Exchange rates fluctuations
e. Income from property rent
f. Insurance claims
g. Bad Debts recovered
h. Excess Provisions written back
*Subject to conditions given in Annexure VII.
3.2
Adjusted Gross Revenue (AGR)
For the purpose of arriving at the “Adjusted Gross Revenue (AGR)”, following shall be
excluded from the Applicable Gross Revenue (ApGR):
a. Charges paid to its parent NSO(s) towards applicable access charges such as
carriage charges, termination charges and roaming charges;
b. Charges paid to NSOs towards minutes and SMSs. However, these charges should
be governed by a written agreement, a copy of which must be provided along with
the proof of actual payment for the deduction to be allowed.
35 Amended vide letter no 20-241/2010 AS-I (Vol.-V) dated 25.10.2021
UL(VNO) agreement updated up to 31.03.2024 86
c. Goods and Service Tax (GST) paid to the Government, if Applicable Gross Revenue
(ApGR) had included the component of GST.
4.
Technical Conditions:
4.1
The Subscriber Terminals shall conform to Condition No. 30.3 of Chapter V and
the security requirements of Indian Government as prescribed from time to time.
4.2
A UL (VNO) Licensee with authorization for GMPCS shall be parent to NSO(s)
only. Any Interconnection with Access Service providers, ISPs, ILDOs, VSAT Operators,
NLDOs, GMPCS operators shall be through the NSO to which it is parented.
4.3
The Licensee shall provide through parent NSO(s) all public utility services as
well as emergency services including TOLL FREE services like police, fire, ambulance.
Licensor may declare any public utility or emergency number as TOLL FREE service
from time to time. While providing access to public utility/emergency services/emergency
response services/services during disaster including police, fire, etc. as defined from time
to time, it shall be ensured that such calls shall be delivered to the designated control
room of the concerned authority, as prescribed from time to time.
5.
Security conditions:
5.1
The Government through appropriate notification may debar usage of GMPCS
mobile terminals in certain areas in the country. The Licensee shall deny service to areas
specified by designated authority immediately and in any case within six hours on
request. The accuracy of denial should be +/- 100 meters of the area boundary specified.
The Government or its authorized representative may carry out the accuracy check of
the areas so debarred. The Licensee shall also provide the facility to carry out
surveillance of User Terminal activity within a specified area.
5.2
A format would be prescribed by the Licensor to delineate the details of information
required before enrolling a customer as a subscriber. Such details should be uniformly
maintained by the service providers and submitted for verification whenever called for by
the Government agency.
5.3 In addition to requirements contained in Condition No. 38.17 in the Part-I of the
Schedule, Service activation shall take place only after checking the bonafide of the
customers as may be prescribed by the Licensor from time to time.
5.4
CLI Restriction (CLIR) should not be normally provided to the customers. Due
verification for the reason of demanding the CLIR, must be done before provision of the
facility. It shall be the responsibility of the service provider to work out appropriate
guidelines to be followed by their staff members to prevent misuse of this facility. The
subscribers having CLIR should be listed in a password protected website with their
complete address and details so that authorized Government agencies can view or
download for detection and investigation of misuse. While providing CLIR facility to
subscriber, it shall be ensured that the CLI is carried from end to end on the network.
However, CLIR must not be provided in case of bulk connections, call centres,
telemarketing services.
UL(VNO) agreement updated up to 31.03.2024 87
UL(VNO) agreement updated up to 31.03.2024 87
Annexure-A
(Proforma for Affidavit regarding details of calculation of “Revenue” and “License Fee”)
AFFIDAVIT
I ……………………………….., aged about ………….. Years son of Shri …………………,
resident of ………………………………………………., do solemnly affirm and state as
under:
1. That I am …………… …………………….of ………………………… (Name of the
Company), licensee of Global Mobile Personnel Communication by Satellite Service in
India and I am duly authorised by the resolutions dated …………………………. passed
by Board of Directors of the Company to furnish affidavit on behalf of
………………………….( Name of the Company).
2. That in compliance of Condition No..………. of Schedule…………..Part ………. and
Annexure……of the License Agreement No. ……………………… signed between the
Company and the Department of Telecommunications, for payment of license fee, a
payment of Rs. ………………….. (Rupees ………. ………………………. is being made
for the period ………………….. to ………………………….. . The details of calculation of
‘Revenue’ and license fee is as per Annexure …… (attached).
3. That the contents in para 2 & 3 and Statement made in Annexure ___ are true and
correct to the best of my knowledge, based on the records of the company.
Deponent.
VERIFICATION:
Verified at ___________ on ___________ that the contents of paragraphs 1 to 3
of this Affidavit and attached ‘Statement of Revenue and License Fee’ as Annexure are
true and correct to the best of my knowledge, no part of it is false and nothing has been
concealed therefrom.
Deponent.
UL(VNO) agreement updated up to 31.03.2024 88
Appendix –I to Annexure-A
Format of Auditor’s Report on Statement of Revenue and License Fee
To
The Board of Directors
……………………….
……………………….
We have examined the attached Statement of Revenue and License Fee of
………………………………………(the name of the operators) for the quarter(s) ending
_____________. We have also examined the reconciliation of the cumulative figures for
the quarter(s) ending _________ appearing in the Statement of Revenue and License
Fee of the company with the figures appearing in the profit and loss account of the
company for the year ended_________, which was audited by us. We understand that
the aforesaid statement(s) (and the reconciliation) is /are to be furnished to the Central
Government for assessment of the license fee paid by the company to the Government,
in terms of the license agreement No…… Signed between the company and the
Department of Telecommunications.
We report that:
1. We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
2. In our view, the company has an adequate internal control system in relation to
revenues, which is commensurate with its size and the nature of its business. The
system, in our opinion, provides reasonable assurance that there is no unrecorded
revenue and that all revenue is recorded in the proper amount and in the proper
period.
3. No amount paid/payable in respect of sales tax, service tax or charges paid to NSO
were outstanding at the last day of the quarter(s) for a period of more than two months
from the date they became payable, except for the following… ………
4. In our opinion and to the best of our knowledge and belief and according to the
explanations given to us, the Statement has been prepared in accordance with the
norms/guidelines contained in the said license agreement in this behalf and gives a
true and fair view of the revenue and license fee paid/payable for the period
computed on the basis of the aforesaid guidelines except for the following……….
* Strike off wherever not applicable.
(SIGNATURE)
UL(VNO) agreement updated up to 31.03.2024 89
UL(VNO) agreement updated up to 31.03.2024 89
Appendix-II to Annexure-A
36Format of Statement of Revenue and License Fee ___________(Name and
address of operator)
VNO- GLOBAL MOBILE PERSONNEL COMMUNICATION BY SATELLITE SERVICE
IN INDIA
Statement of Revenue and License Fee for the Quarter ………… of the financial
year……….…
(AMOUNT IN RUPEES)
S.N
.
PARTICULARS
ACTUALS
OF THE
PREVIOUS
QUARTER
FIGURES
FOR THE
CURRENT
QUARTER
CUMULATIVE
FIGURES UP
TO THE
PREVIOUS
QUARTER
1.
Revenue from Services:
A.
Post paid options:
i.
Rentals
ii
Activation Charges
iii.
Airtime Revenue
iv.
Goods & Service Tax (GST)
v
Service charges
vi.
Charges on account of any
other value added services.
Supplementary Services etc.
vii.
Any
other
income/
miscellaneous receipt from post
paid options.
B.
Pre-paid options:
i.
Sale of pre-paid sim cards
including full value of all
components charged therein.
ii.
Any
other
income/
miscellaneous receipt from pre-
paid options.
C. i. Revenue
from
Mobile
Community
phone
service
including
full
value
of
all
components charged therein.
ii.
Any
other
income/
miscellaneous
receipt
from
Mobile
Community
phone
service.
2.
Income from Trading activity:
(all inclusive of sales tax)
i.
Sale of handsets
ii.
Sale of accessories, including
SIM cards etc.
iii.
Any
other
income/
miscellaneous
receipt
from
trading activity.
3.
Income from investments.
36 Amendment vide DoT letter no. 20-271/2010-AS-I(Vol.V) dated 25th October, 2021
UL(VNO) agreement updated up to 31.03.2024 90
i.
Interest income
ii.
Dividend income
iii.
Any
other
miscellaneous
receipt from investments.
4.
Non-refundable
deposits
from subscribers.
5.
Revenue from franchisees /
resellers, excluding revenues
already included in 1A&1B
6.
Revenue
from
sharing/leasing
of
infrastructure
7.
Revenue
from
other
operators
from
sale
of
bandwidth
8.
Revenue
from
other
operators
on
account
of
provisioning
of
interconnection
9.
Any other INCOME
10.
Revenue from Operations/
Activities other than Telecom
Operations/ Activities as well
as revenue from activities
under a license from Ministry
of
Information
and
Broadcasting
11.
Miscellaneous revenue
AA
GROSS REVENUE OF THE
LICENSEE COMPANY:
(Add 1-11)
BB
Less
1.
Revenue from operations other
than
telecom
activities/
operations
2.
Revenue from activities under a
license
from
Ministry
of
Information and Broadcasting
3.
Receipt from USO Fund
4.
Items of ‘Other Income’ as
listed in Annexure- VII
i.
Income from Dividend
ii.
Income from Interest
iii.
Capital Gains on account of
profit of Sale of fixed assets
and securities
iv.
Gains from Foreign Exchange
rates fluctuations
v.
Income from property rent
UL(VNO) agreement updated up to 31.03.2024 91
UL(VNO) agreement updated up to 31.03.2024 91
vi.
Insurance claims
vii.
Bad Debts recovered
viii.
Excess Provisions written back
BB
Total BB (1+2+3+4):
CC
APPLICABLE
GROSS
REVENUE (ApGR) (AA-BB)
DD
Less:
1
Charges actually paid to parent
NSO(s)
towards
applicable
access
charges
such
as
carriage charges, termination
charges and roaming charges.
2.
Charges actually paid to NSO
towards Minutes and SMSs.
3.
Goods and Service Tax paid to
the Government.
DD
TOTAL DEDUCTION (1+2+3)
EE
Adjusted
Gross
Revenue
(CC-DD)
REVENUE
SHARE
@……………OF
ADJUSTED
GROSS REVENUE:
UL(VNO) agreement updated up to 31.03.2024 92
Annexure –B
NORMS FOR PREPARATION OF ANNUAL FINANCIAL STATEMENTS
Accounts shall be maintained separately for each telecom service operated by the
licensee company.
Any category of accrued revenue, the amount of which exceeds 5% of the total
accrued revenue, shall be shown separately and not combined with any other
item/category.
Accrued Revenue shall indicate:
(a)
All amounts billable for the period.
(b)
Any billings for previous years that had been omitted from the previous years’ P&L
Accounts.
(c)
Any non-refundable deposits collected from the customers/franchisees to the
extent these are credited to P&L Account for the year.
Subsidiary registers/ledgers shall be maintained for each item given above so as
to enable easy verification.
Service revenue (amount billable) shall be shown gross and details of discount/rebate
indicated separately. Charges paid to NSO(s) shall be limited to applicable access charges
such as carriage charges, termination charges and roaming charges.
Security or any other Deposits taken from the subscriber shall be shown
separately, for each category, and the amount that has fallen due for refund but not yet
paid also disclosed under two categories, namely:
o Up to 45 days
o More than 45 days.
Service Tax billed, collected and remitted to the Government shall be shown
separately.
Sales Tax billed, collected and remitted to the Government shall be shown
separately.
Details of Income from sales of goods shall be furnished indicating the income and
number of items sold under each category. Method of inventory valuation used shall also
be disclosed along with computation of cost of goods sold.
Sales shall be shown gross and details of discount/rebate allowed and of sales
returns shall be shown separately.
Income from interest and dividend shall be shown separately, without any related
expenses being set-off against them on the income side of the P&L Account.
Increase/decrease of stock shall be shown separately.
Details of reversal of previous years’ debits, if any, shall be shown component-
wise, under the miscellaneous head (eg. Bad debts recovered, etc.)
Item-wise details of income that has been set off against corresponding expenditure, shall
be shown.
UL(VNO) agreement updated up to 31.03.2024 93
UL(VNO) agreement updated up to 31.03.2024 93
CHAPTER-XIII
PUBLIC MOBILE RADIO TRUNKING SERVICE
1. Service Area: The Service Area of Public Mobile Radio Trunking Service (PMRTS)
shall be the Telecom Circle/Metro area as defined in Annexure-V. License/Authorization
for PMRTS Service, granted for more than one Service Area (Telecom Circle/Metro),
shall be administered at each Service Area level.
2. Scope of PMRTS Service: Scope of this Authorization covers the following:
2.1 The licensee is permitted to provide Public Mobile Radio Trunking Service (PMRTS).
The PMRTS refers to:
(i) a two way land mobile service in which users communicate among themselves through
a pair of radio frequencies out of a pool in a designated frequency band, assigned to the
system using pair of radio frequencies and
(ii) the pair of frequencies is allocated on placement of call request and returned to the
pool on completion of call and
(iii) the communication usually takes place through repeater station (also called base
station). Once user is assigned a channel (a pair of frequencies) by the system, no one
else can interfere with the communication.
3.
Financial Conditions:
373.1 Gross Revenue:
The Gross revenue shall include all revenues accruing to the Licensee on account of
goods supplied, services provided, leasing/hiring of infrastructure, use of its resources
by others, application fees, installation charges, call charges, late fees, sale proceeds of
instruments (or any terminal equipment including accessories), fees on account of annual
maintenance contract, income from value added services, supplementary services,
revenue earned from parent NSO, etc. and any other miscellaneous item including
interest, dividend, etc. without any set-off of related item of expense etc.
3.1A Applicable Gross Revenue (ApGR):
ApGR shall be equal to Gross Revenue (GR) of the licensee as reduced by the items
listed below:
(i) Revenue from operations other than telecom activities/ operations.
(ii) Revenue from activities under a license/ permission issued by Ministry of Information
and Broadcasting.
(iii) Receipts from the USO Fund.
(iv) List of other income* to be excluded from GR to arrive at ApGR
a. Income from Dividend
b. Income from Interest
37 Amended vide letter no. 20-271/2010 AS-I (Vol.-V) dated 25.10.2021
UL(VNO) agreement updated up to 31.03.2024 94
c. Capital Gains on account of profit of Sale of fixed assets and securities
d. Gains from Foreign Exchange rates fluctuations
e. Income from property rent
f. Insurance claims
g. Bad Debts recovered
h. Excess Provisions written back
*Subject to conditions given in Annexure VII.
3.2
Adjusted Gross Revenue (AGR):
For the purpose of arriving at the “Adjusted Gross Revenue (AGR)”, following shall be
excluded from the Applicable Gross Revenue (ApGR):
a. Charges paid to its parent NSO(s) towards applicable access charges such as
carriage charges, termination charges and roaming charges.
b. Charges paid to NSOs towards Bulk/ Wholesale bandwidth, leased line and
bandwidth charges and minutes. However, these charges should be governed by
a written agreement, a copy of which must be provided along with the proof of actual
payment for the deduction to be allowed.
c. Goods and Service Tax (GST) paid to the Government if Applicable Gross Revenue
(ApGR) had included as component of GST.
4.
Network Interconnection:
4.1
A UL (VNO) Licensee with authorization for PMRTS shall be parent to NSO(s)
only. Any Interconnection with Access Service providers, ISPs, ILDOs, VSAT operators,
NLDOs shall be through the NSO to which it is parented.
UL(VNO) agreement updated up to 31.03.2024 95
UL(VNO) agreement updated up to 31.03.2024 95
Annexure-A
(Proforma for Affidavit regarding details of calculation of “Revenue” and “License Fee”)
AFFIDAVIT
I ……………………………….., aged about ………….. years son of Shri …………………,
resident of ………………………………………………., do solemnly affirm and state as
under:
1.
That I am …………… …………………….of ………………………… (Name of the
Company),
licensee
of
……………………………………….
Service
in
…………………………..Service Area and I am duly authorised by the resolutions dated
…………………………. passed by Board of Directors of the Company to furnish affidavit
on behalf of ………………………….( Name of the Company).
2.
That in compliance of condition No.. ………. of Schedule…………..Part ……….
and Annexure……of the License Agreement No. ……………………… signed between
the Company and the Department of Telecommunications, for payment of license fee, a
payment of Rs. ………………….. (Rupees ………. ………………………. is being made
for the period ………………….. to ………………………….. . The details of calculation
of ‘revenue’ and license fee is as per Annexure …… (attached).
3.
That the contents in Para 2 & 3 and Annexure ……. are true and correct to the
best of my knowledge, based on the records of the company.
Deponent.
VERIFICATION
Verified at ………………….. on ……………………….. that the contents of paragraphs 1
to 3 of the affidavit and Annexure…… are true and correct to my knowledge, no part of
it is false and nothing has been concealed there from.
Deponent.
UL(VNO) agreement updated up to 31.03.2024 96
Appendix-I to Annexure-A
Format of Auditor’s Report on Statement of Revenue and License Fee
To
The Board of Directors
……………………….
We have examined the attached Statement of Revenue and License Fee of
………………………………………(the name of the operators) for the quarter(s) ending
_____________. We have also examined the reconciliation of the cumulative figures
for the quarter(s) ending _________ appearing in the Statement of Revenue and License
Fee of the company with the figures appearing in the profit and loss account of the
company for the year ended_________ which was audited by us. We understand that
the aforesaid statement(s) ( and the reconciliation) is /are to be furnished to the Central
Government for assessment of the license fee paid by the company to the Government,
in terms of the license agreement No…………………. signed between the company and
the Department of Telecommunications. We report that:
(i)
We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
(ii)
In our view, the company has an adequate internal control system in relation
to revenues which is commensurate with its size and the nature of its business.
The system, in our opinion, provides reasonable assurance that there is no
unrecorded revenue and that all revenue is recorded in the proper amount and
in the proper period.
(iii)
No amounts payable in respect of sales tax, service tax or PSTN/toll/roaming
charges were outstanding at the last day of the quarter(s) for a period of more
than two months from the date they became payable, except for the
following:………
(iv)
In our opinion and to the best of our knowledge and belief and according to the
explanations given to us, the Statement has been prepared in accordance with
the norms/guidelines contained in the said license agreement in this behalf
and gives a true and fair view of the revenue and license fee paid/payable for
the period computed on the basis of the aforesaid guidelines except for the
following:
(Seal and Signature )
Place & Date
*Strike off wherever not applicable.
UL(VNO) agreement updated up to 31.03.2024 97
UL(VNO) agreement updated up to 31.03.2024 97
Appendix-II to Annexure-A
38Format of Statement of Revenue and License Fee___________ (Name and
address of operator)
Public Mobile Radio Trunking Service in_________________ Service Area
Statement of Revenue and License Fee for the Quarter …….of the financial
year………......
(AMOUNT IN RUPEES)
S.N
.
PARTICULARS
ACTUALS
FOR
THE
PREVIOUS
QUARTER
ACTUAL
FOR
THE
CURRENT
QUARTER
CUMULATI
VE
UPTO
THE
CURRENT
QUARTER
1.
Revenue from Services:
i.
Rentals
Ii
Activation Charges
iii.
Revenue from NSO.
iv.
Goods & Service Tax (GST)
v.
Service charges
vi.
Income from lease/rental/AMC of
items in 2(i) and 2(ii).
vii.
Any
other
income/
miscellaneous
receipt
from
service
2.
Income from Trading activity:
(all inclusive of sales tax)
i.
Sale of handsets
ii.
Sale of accessories, including
SIM
cards,
spares,
consumables, etc.
iii.
Any other income/miscellaneous
receipt from trading activity.
3.
Income from investments.
i.
Interest income
ii.
Dividend income
iii.
Any other miscellaneous receipt
from investments.
4.
Non-refundable deposits from
subscribers.
5.
Revenue
from
Operations/
Activities other than Telecom
Operations/ Activities as well
38 Amendment vide DoT letter no. 20-271/2010-AS-I(Vol.V) dated 25th October, 2021
UL(VNO) agreement updated up to 31.03.2024 98
as revenue from activities
under a license from Ministry
of
Information
and
Broadcasting
6.
Any
other
receipt
/
Miscellaneous revenue.
AA
GROSS REVENUE OF THE
Licensee COMPANY:
(Add 1-6)
BB
Less
1.
Revenue from operations other
than
telecom
activities/
operations
2.
Revenue from activities under a
license
from
Ministry
of
Information and Broadcasting
3.
Receipt from USO Fund
4.
Items of ‘Other Income’ as listed
in Annexure- VII
i.
Income from Dividend
ii.
Income from Interest
iii.
Capital Gains on account of profit
of Sale of fixed assets and
securities
iv.
Gains from Foreign Exchange
rates fluctuations
v.
Income from property rent
vi.
Insurance claims
vii.
Bad Debts recovered
viii.
Excess Provisions written back
BB
Total BB (1+2+3+4):
CC
APPLICABLE
GROSS
REVENUE (ApGR) (AA-BB)
DD
Less:
1.
Charges actually paid to parent
NSO(s)
towards
applicable
access charges such as carriage
charges, termination charges
and roaming charges.
2.
Charges actually paid to NSO
towards
Bulk/
wholesale
bandwidth,
leased
line
and
bandwidth charges and minutes.
3.
Goods and Service Tax paid to
the Government.
DD
TOTAL DEDUCTION (1+2+3)
UL(VNO) agreement updated up to 31.03.2024 99
UL(VNO) agreement updated up to 31.03.2024 99
EE
Adjusted Gross Revenue (CC-
DD)
REVENUE
SHARE
@…………… OF ADJUSTED
GROSS REVENUE:
UL(VNO) agreement updated up to 31.03.2024 100
ANNEXURE –B
NORMS FOR PREPARATION OF ANNUAL FINANCIAL STATEMENTS
Accounts shall be maintained separately for each telecom service operated by the
licensee company.
Any category of accrued revenue, the amount of which exceeds 5% of the total
accrued revenue, shall be shown separately and not combined with any other item/category.
Accrued Revenue shall indicate:
(a)
All amounts billable for the period.
(b)
Any billings for previous years that had been omitted from the previous years’
P&L Accounts.
(c)
Any non-refundable deposits collected from the customers/franchisees to the
extent these are credited to P&L Account for the year.
Subsidiary registers/ledgers shall be maintained for each item given above so as to
enable easy verification.
Service revenue (amount billable) shall be shown gross and details of discount/rebate
indicated separately. Charges paid to NSO(s) shall be limited to applicable access charges such
as carriage charges, termination charges and roaming charges.
Security or any other Deposits taken from the subscriber shall be shown separately,
for each category, and the amount that has fallen due for refund but not yet paid also
disclosed under two categories, namely:
o Up to 45 days
o More than 45 days.
Service Tax billed, collected and remitted to the Government shall be shown separately.
Sales Tax billed, collected and remitted to the Government shall be shown separately.
Details of Income from sales of goods shall be furnished indicating the income and
number of items sold under each category. Method of inventory valuation used shall also be
disclosed along with computation of cost of goods sold.
Sales shall be shown gross and details of discount/rebate allowed and of sales returns
shall be shown separately.
Income from interest and dividend shall be shown separately, without any related
expenses being set-off against them on the income side of the P&L Account.
Increase/decrease of stock shall be shown separately.
Details of reversal of previous years’ debits, if any, shall be shown component-wise,
under the miscellaneous head (eg. Bad debts recovered, etc.)
Item-wise details of income that has been set off against corresponding expenditure,
shall be shown.
UL(VNO) agreement updated up to 31.03.2024
101
UL(VNO) agreement updated up to 31.03.2024 101
CHAPTER-XIV
COMMERCIAL VSAT CUG SERVICE
1.
Service Area: The Service Area of Very Small Aperture Terminal (VSAT) Closed
User Group (CUG) Service shall be at National Level.
2.
Scope of VSAT CUG Service: Scope of this Authorization covers the following:
392.1 (i)
(a) Data connectivity between various sites scattered within territorial boundary of
India using VSATs. The users of the service should belong to a Closed User Group
(CUG).
(b) VSAT licensee after obtaining ISP license may use same Hub station and VSAT
(remote station) to provide Internet service directly to the subscribers, and in this
case VSAT (remote station) may be used as a distribution point to provide Internet
service to multiple independent subscribers.
(c) Backhaul connectivity for cellular mobile services through satellite using VSAT
to the Access Service providers.
(d) Backhaul connectivity using VSAT to Access Service Providers for establishing
Wi-Fi hotspots.
(e) The VSAT terminal of the Commercial VSAT CUG Service provider, which is
used to provide cellular mobile backhaul link or Wi-Fi hotspot backhaul link, is to be
located in the service area of the Access service provider, where the backhaul link
is used. However, the VSAT hub can be located anywhere in the country. The link
from the hub station to the respective network element of the cellular mobile network
can be provided through the terrestrial connectivity obtained from an authorized
service provider.
(ii) Long distance carriage rights, granted for NLD, ILD and Access service, are not
covered under the scope of this service except the backhaul connectivity mentioned in
para 2.1(i) (c) & (d) above.
(iii) The Closed User Group Domestic Data Network via INSAT Satellite System using
VSAT shall be restricted to geographical boundaries of India.
(iv) The Licensee can set up a number of CUGs using the shared hub infrastructure.
(v) PSTN/PLMN connectivity is not permitted except the backhaul connectivity
mentioned in para 2.1(i) (c) & (d) above.
3.
Financial Conditions:
403.1 Gross Revenue:
The Gross Revenue shall include all revenues accruing to the Licensee on account of
goods supplied, services provided, leasing/hiring of infrastructure, use of its resources
by others, application fees, installation charges, call charges, late fees, sale proceeds of
instruments
(or
any
terminal
equipment
including
accessories),
VSAT
hardware/software, fees on account of Annual Maintenance Contract/ Annual
39Amended vide letter no. 20-271/2010 AS-I (Vol.-III) dated 23.09.2021
40 Amended vid letter no. 20-271/2010 AS-I (Vol.-V) dated 25.10.2021
UL(VNO) agreement updated up to 31.03.2024 102
Comprehensive
Maintenance
Contract
income
from
value
added
services,
supplementary services, etc. and any other miscellaneous item including interest,
dividend, etc. without any set-off of related item of expense, etc.
3.1A Applicable Gross Revenue (ApGR):
ApGR shall be equal to Gross Revenue (GR) of the licensee as reduced by the items
listed below:
(i) Revenue from operations other than telecom activities/ operations.
(ii) Revenue from activities under a license/ permission issued by Ministry of
Information and Broadcasting.
(iii) Receipts from the USO Fund.
(iv) List of other income* to be excluded from GR to arrive at ApGR
a. Income from Dividend
b. Income from Interest
c. Capital Gains on account of profit of Sale of fixed assets and securities
d. Gains from Foreign Exchange rates fluctuations
e. Income from property rent
f. Insurance claims
g. Bad Debts recovered
h. Excess Provisions written back
*Subject to conditions given in Annexure VII.
3.2
Adjusted Gross Revenue (AGR):
For the purpose of arriving at the “Adjusted Gross Revenue (AGR)”, following shall be
excluded from the Applicable Gross Revenue (ApGR):
a. Charges paid to its parent NSO(s) towards applicable access charges such as
carriage charges, termination charges and roaming charges.
b. Charges paid to NSOs towards Bulk/Wholesale bandwidth, leased line and
bandwidth charges. However, these charges should be governed by a written
agreement, a copy of which must be provided along with the proof of actual
payment for the deduction to be allowed.
c. Goods and Service Tax (GST) paid to the Government if Applicable Gross Revenue
(ApGR) had included as component of GST.
4.
Technical Conditions:
414.1 Technical Parameters:-For providing the VSAT services, the VNO shall install
equipment complying to the technical parameters mentioned in the relevant Interface
Requirement for VSAT Network(s) issued by TEC, as modified from time to time.
4.2
Use of space segment on INSAT satellite:
(i)
The VNO shall use the required space segment obtained by the NSO.
41Amended vide letter no. 20-271/2010 AS-I (Vol.-III) dated 23.09.2021
UL(VNO) agreement updated up to 31.03.2024
103
UL(VNO) agreement updated up to 31.03.2024 103
(ii)
The space segment charges will be payable to NSO as per mutual agreement.
(iii) As mentioned in Chapter VII of the license agreement, separate
clearances/license shall be obtained by the NSO.
(iv) The space segment monitoring charges shall be paid to NOCC by NSO.
4.3
The HUB Station shall be operated and maintained by the NSO subject to the
following conditions:-
(i)
The Hub station as well as all the VSATs shall be within the geographical
boundary of India.
(ii)
The VSAT at the premises of customer/ users should have a logo prominently
displayed indicating the name of NSO.
(iii)
42A Licensee having license/ authorizations for both Commercial VSAT CUG
Service and NLD Service is permitted to share VSAT Hub for the purpose of
providing authorized services.
5.
Network Interconnection:
5.1
A UL (VNO) Licensee with authorization for Commercial VSAT CUG service shall
be parent to NSO(s) only. Any Interconnection with Access Service providers, ISPs,
ILDOs, VSATs, NLDOs shall be through the NSO to which it is parented.
6.
Security Conditions:
6.1
Requisite monitoring facilities/ equipment for each type of system used, shall be
provided by the Licensee at own cost for monitoring as and when required by the Licensor
in case of equipment for monitoring facility is available at VNO. In case, the equipment is
available with NSO, the NSO will monitor.
6.2
In the areas falling within 10 Kms of Line of Control (LOC), Line of Actual Control
(LAC) and International Border between Akhnoor in J&K and Pathankot and other areas
as may be notified from time to time by the Licensor, installation of VSAT/ by the Licensee
shall be taken up only after prior approval from local Army authorities about specific
location of VSAT/ with prior intimation to the Licensor and concerned TERM Cell in
addition to requisite clearances. Width of this buffer zone along the borders within the
Indian Territory shall be as decided by the Govt. of India from time to time. As and when
there is any change in the structure of defined buffer zone, for whatsoever reason, it
should be reported to the Licensor immediately. The Government and its authorized
representatives may carry out physical verification of the accuracy of buffer zone so
created.
42 Appended vide letter no 20-271/2010 AS-I (Vol.-III) dated 23.09.2021
UL(VNO) agreement updated up to 31.03.2024 104
ANNEXURE-A
(Proforma for Affidavit regarding details of calculation of “Revenue” and “License Fee”)
AFFIDAVIT
I ……………………………….., aged about ………….. years son of Shri …………………,
resident of ………………………………………………., do solemnly affirm and state as
under:
1.
That I am …………… …………………….of ………………………… (Name of the
Company),
licensee
of
……………………………………….
Service
in
…………………………..Service Area and I am duly authorised by the resolutions dated
…………………………. passed by Board of Directors of the Company to furnish affidavit
on behalf of ………………………….( Name of the Company).
2.
That in compliance of condition No.. ………. of Schedule…………..Part ……….
and Annexure……of the License Agreement No. ……………………… signed between
the Company and the Department of Telecommunications, for payment of license fee, a
payment of Rs. ………………….. (Rupees ………. ………………………. is being made
for the period ………………….. to ………………………….. . The details of calculation
of ‘revenue’ and license fee is as per Annexure …… (attached).
3.
That the contents in Para 2 & 3 and Annexure ……. are true and correct to the
best of my knowledge, based on the records of the company.
Deponent.
VERIFICATION
Verified at ………………….. on ……………………….. that the contents of paragraphs 1
to 3 of the affidavit and Annexure…… are true and correct to my knowledge, no part of
it is false and nothing has been concealed there from.
Deponent.
UL(VNO) agreement updated up to 31.03.2024
105
UL(VNO) agreement updated up to 31.03.2024 105
Appendix-I to Annexure-A
Format of Auditor’s Report on Statement of Revenue and License Fee
To
The Board of Directors
……………………….
We have examined the attached Statement of Revenue and License Fee of
………………………………………(the name of the operators) for the quarter(s) ending
_____________. We have also examined the reconciliation of the cumulative figures
for the quarter(s) ending _________ appearing in the Statement of Revenue and License
Fee of the company with the figures appearing in the profit and loss account of the
company for the year ended_________ which was audited by us. We understand that
the aforesaid statement(s) ( and the reconciliation) is /are to be furnished to the Central
Government for assessment of the license fee paid/payable by the company to the
Government, in terms of the license agreement No…………………. signed between the
company and the Department of Telecommunications. We report that:
(i)
We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
(ii)
In our view, the company has an adequate internal control system in relation
to revenues which is commensurate with its size and the nature of its business.
The system, in our opinion, provides reasonable assurance that there is no
unrecorded revenue and that all revenue is recorded in the proper amount and
in the proper period.
(iii)
No amounts paid in respect of sales tax, service tax or PSTN/toll/roaming
charges were outstanding at the last day of the quarter(s) for a period of more
than two months from the date they became payable, except for the
following:………
(iv)
In our opinion and to the best of our knowledge and belief and according to the
explanations given to us, the Statement has been prepared in accordance with
the norms/guidelines contained in the said license agreement in this behalf
and gives a true and fair view of the revenue and license fee paid/payable for
the period computed on the basis of the aforesaid guidelines except for the
following:
( Seal and Signature )
Place & Date
*Strike off wherever not applicable.
UL(VNO) agreement updated up to 31.03.2024 106
Appendix-II to Annexure-A
43Format of Statement of Revenue and License Fee ----------------- (Name and
address of operator)
VNO-VERY SMALL APERTURE TERMINAL SERVICE
Statement of Revenue and License Fee for the Quarter…………….of the financial
year…………
(AMOUNT IN RUPEES)
Sl.
No.
PARTICULARS
ACTUALS
FOR
THE
PREVIOUS
QUARTER
FIGURES
FOR
CURRENT
QUARTER
CUMULATIVE
FIGURES
UPTO
THE
PREVIOUS
QUARTER
1.
Revenue from Services:
i.
Revenue from provisioning of VSAT
service.
ii.
Revenue from supplementary/value
added services.
iii.
Goods & Service Tax (GST)
iv.
Revenue from lease/rentals of items
in 2(i) and (ii) below.
v.
Revenue
from
Annual
Comprehensive
Maintenance
Contract
(ACMC)/
Annual
Maintenance Contract (AMC) etc.
vi.
Any other income/ miscellaneous
receipt.
2.
Income from Trading activity: (all
inclusive of sales tax)
i.
Sale of VSAT including antennas and
other accessories including software,
hardware etc.
ii.
Sale of accessories, etc.
iii.
Any
other
income/miscellaneous
receipt from trading activity.
3.
Income from investments.
43 Amendment vide DoT letter no. 20-271/2010-AS-I(Vol.V) dated 25th October, 2021
UL(VNO) agreement updated up to 31.03.2024
107
UL(VNO) agreement updated up to 31.03.2024 107
i.
Interest income
ii.
Dividend income
iii.
Any other miscellaneous receipt from
investments.
4.
Non-refundable deposits.
5.
Revenue from sharing/leasing of
other infrastructure
6.
Revenue
from
Operations/
Activities
other
than
Telecom
Operations/ Activities as well as
revenue from activities under a
license
from
Ministry
of
Information and Broadcasting
7.
Miscellaneous revenue including
revenue paid by NSO to licensee.
AA GROSS
REVENUE
OF
THE
Licensee COMPANY (Add 1-7):
BB
Less
1.
Revenue from operations other than
telecom activities/ operations
2.
Revenue from activities under a license
from Ministry of Information and
Broadcasting
3.
Receipt from USO Fund
4.
Items of ‘Other Income’ as listed in
Annexure- VII
i.
Income from Dividend
ii.
Income from Interest
iii.
Capital Gains on account of profit of Sale
of fixed assets and securities
iv.
Gains from Foreign Exchange rates
fluctuations
v.
Income from property rent
vi.
Insurance claims
vii.
Bad Debts recovered
UL(VNO) agreement updated up to 31.03.2024 108
viii
Excess Provisions written back
BB
Total BB (1+2+3+4):
CC APPLICABLE GROSS REVENUE
(ApGR) (AA-BB)
DD Less:
1.
Charges actually paid to parent NSO(s)
towards applicable access charges such as
carriage charges, termination charges and
roaming charges.
2.
Charges
actually
paid
to
Bulk/
wholesale bandwidth, leased line and
bandwidth charges.
3.
Goods and Service Tax paid to the
Government
DD TOTAL DEDUCTIBLE REVENUE
(1+2+3)
EE ADJUSTED GROSS REVENUE:
(CC-DD)
REVENUE SHARE @……………OF
ADJUSTED GROSS REVENUE:
UL(VNO) agreement updated up to 31.03.2024
109
UL(VNO) agreement updated up to 31.03.2024 109
Annexure-B
NORMS FOR PREPARATION OF ANNUAL FINANCIAL STATEMENTS
Accounts shall be maintained separately for each telecom service operated by the
licensee company.
Any category of accrued revenue, the amount of which exceeds 5% of the total
accrued revenue, shall be shown separately and not combined with any other item/category.
Accrued Revenue shall indicate:
(a)
All amounts billable for the period.
(b)
Any billings for previous years that had been omitted from the previous years’
P&L Accounts.
(c)
Any non-refundable deposits collected from the customers/franchisees to the
extent these are credited to P&L Account for the year.
Subsidiary registers/ledgers shall be maintained for each item given above so as to
enable easy verification.
Service revenue (amount billable) shall be shown gross and details of discount/rebate
indicated separately. Charges paid to NSO(s) shall be limited to applicable access charges such
as carriage charges, termination charges and roaming charges.
Security or any other Deposits taken from the subscriber shall be shown separately,
for each category, and the amount that has fallen due for refund but not yet paid also
disclosed under two categories, namely:
o Up to 45 days
o More than 45 days.
Service Tax billed, collected and remitted to the Government shall be shown separately.
Sales Tax billed, collected and remitted to the Government shall be shown separately.
Details of Income from sales of goods shall be furnished indicating the income and
number of items sold under each category. Method of inventory valuation used shall also be
disclosed along with computation of cost of goods sold.
Sales shall be shown gross and details of discount/rebate allowed and of sales returns
shall be shown separately.
Income from interest and dividend shall be shown separately, without any related
expenses being set-off against them on the income side of the P&L Account.
Increase/decrease of stock shall be shown separately.
Details of reversal of previous years’ debits, if any, shall be shown component-wise,
under the miscellaneous head (eg. Bad debts recovered, etc.)
Item-wise details of income that has been set off against corresponding expenditure,
shall be shown.
UL(VNO) agreement updated up to 31.03.2024 110
Annexure –C
Monthly Operation Report Proforma For VSAT Network
1.
Reporting Month
:
2.
Name of the Network
:
3.
Name of the Hub Station
:
4.
Number of VSATs in operation at
the end of last month
:
5.
Number of VSATs in operation at the
end of month reported
:
ANTENNA SIZE
Added during
the month
Withdrawn during
the month
PROGRESSIVE TOTAL
6.
Power transmitted from Hub
:
7.
Hub U/L EIRP
:
8.
For Star (TDM/TDMA) TDM/FTDMA:
Out Bound Carriers
In Bound Carriers
DATA
RATE
(Kbps)
UPLINK RF
Frequency
(MHz)
Satellite
Power
(dBw)
Data
Rates
(Kbps)
No. of
I/B
Carriers
Uplink RF
Frequency
(MHz)
Satellite
Power
(dBw)
UL(VNO) agreement updated up to 31.03.2024
111
UL(VNO) agreement updated up to 31.03.2024 111
9.
Number of DAMA/PAMA Carriers
Data Rates (Kbps)
NO. OF CARRIERS
Satellite Power (dBw)
P
A
M
A
D
A
M
A
10. Any Alteration or addition in the configuration of HUB Station/ VSAT (in detail):
11.
Special feature if any:
Sl
N
o
Site
Name
&
Addre
ss
Lon
gitu
de/
Latit
ude
Look
Angle
AZ/EL
Size
of
VSA
T in
Mts
Tx/
Rx
In
MHz
Altitude
Above
MSL in
Mts
Ht of
Antenna
mast
from
Ground
in Mts
Ht. of
Bldg.
in Mts
Ht of
Antenna
mast
from roof
in Meters
Power
in
Watts
Date of
Commissio
ning
UL(VNO) agreement updated up to 31.03.2024 112
CHAPTER-XV
RESALE OF IPLC SERVICE
1.
Service Area:
The Service Area of Resale of International Private Leased
Circuit (IPLC) Service shall be at National Level.
2.
Scope of Resale of IPLC Service: Scope of this Authorization covers the
following:
2.1(a) The Licensee is permitted to provide end-to-end International Private Leased
Circuit (IPLC) between India and country of destination for any capacity denomination by
obtaining the International bandwidth from International Long Distance Service Providers
(ILDOs), licensed under section 4 of the Indian Telegraph Act, 1885.
(b) The Licensee shall provide the service to end subscribers by entering into
arrangements for leased line with Access Providers, National Long Distance Service
Providers and International Long Distance Service Providers.
(c) The Licensee can access the subscribers for provision of IPLC only and not for any
other purpose.
(d) Licensee is allowed to sell bandwidth on retail basis with, or, without, value addition
to end subscriber.
(e) The Licensee shall not sell the bandwidth to other licensee of ‘Resale of IPLC”
License.
(f) Co-location of the equipment of the licensee at cable landing station shall be as per
terms and conditions as may be prescribed from time to time by TRAI.
(g) The licensee is allowed to create own infrastructure limited to multiplexing, de-
multiplexing, billing and customer management system.
(h) Interconnection of IPLC with PSTN/PLMN/GMPCS/Internet Telephony Network is not
permitted.
3.
Financial Conditions:
443.1 Gross Revenue:
The Gross Revenue shall include all revenues accruing to the Licensee on account of
goods supplied, services provided, leasing of infrastructure, use of its resources by
others, application Fee, installation charges, call charges, late Fees, sale proceeds of
instruments (or any terminal equipment including accessories), handsets, band width,
income from Value Added Services, supplementary services, access or interconnection
charges, any lease or rent charges for hiring of infrastructure, revenue earned from
parent NSOs, revenue from permissible sharing of infrastructure and any other
miscellaneous income, without any set-off for related item of expense etc.
44 Amended vide letter no. 20-271/2010 AS-I (Vol.-V) dated 25.10.2021
UL(VNO) agreement updated up to 31.03.2024
113
UL(VNO) agreement updated up to 31.03.2024 113
3.1A Applicable Gross Revenue (ApGR):
ApGR shall be equal to Gross Revenue (GR) of the licensee as reduced by the items
listed below:
(i) Revenue from operations other than telecom activities/ operations.
(ii) Revenue from activities under a license/ permission issued by Ministry of
Information and Broadcasting.
(iii) Receipts from the USO Fund.
(iv) List of other income* to be excluded from GR to arrive at ApGR
a. Income from Dividend
b. Income from Interest
c. Capital Gains on account of profit of Sale of fixed assets and securities
d. Gains from Foreign Exchange rates fluctuations
e. Income from property rent
f. Insurance claims
g. Bad Debts recovered
h. Excess Provisions written back
*Subject to conditions given in Annexure VII.
3.2
Adjusted Gross Revenue (AGR):
For the purpose of arriving at the “Adjusted Gross Revenue (AGR)”, following shall be
excluded from the Applicable Gross Revenue (ApGR):
a. Charges paid to its parent NSO(s) towards applicable access charges such as
carriage charges, termination charges and roaming charges.
b. Charges paid to NSOs towards Bulk/Wholesale bandwidth, leased line and
bandwidth charges. However, these charges should be governed by a written
agreement, a copy of which must be provided along with the proof of actual
payment for the deduction to be allowed.
c. Goods and Service Tax (GST) paid to the Government, if Applicable Gross
Revenue (ApGR) had included as component of GST.
4.
Security Conditions:
4.1
The Licensee shall take IPLC from the licensed ILDOs. The interception and
monitoring of Resellers circuits shall take place at the Gateway of the ILDO from whom
the IPLC has been taken by the Licensee.
4.2
The provisioning for Lawful Interception & Monitoring of the Resellers’ IPLC shall
be done by the ILD Operator and the concerned ILDO shall be responsible for Lawful
Interception and Monitoring of the traffic passing through the IPLC. The Resellers shall
extend all cooperation in respect of interception and monitoring of its IPLC and shall be
responsible for the interception results. The Licensee shall be responsible to interact,
UL(VNO) agreement updated up to 31.03.2024 114
correspond and liaise with the licensor and security agencies with regard to security
monitoring of the traffic.
4.3
The Licensee shall, before providing an IPLC to the customer, get the details of
services/equipment to be connected on both ends of IPLC, including type of terminals,
data rate, actual use of circuit, protocols/interface to be used, etc. The Resellers shall
permit only such type of service/protocol on the IPLC for which the concerned ILDO has
capability of interception and monitoring.
4.4
Without prejudice to the liability of ILDO, the Licensee shall pass on any direct
request placed by security agencies on him for interception of the traffic on their IPLC to
the concerned ILDOs within two hours for necessary actions.
4.5
The Conditions No. 38.5, 38.6, 38.10(i), 38.10(ii), 38.20, 38.21(i), 38.21(ii),
38.22(i), 38.22(ii) and 38.23(vii), 38.23(x) contained in PART-I of the Schedule to the
License Agreement shall not be applicable for Resale of IPLC Service.
UL(VNO) agreement updated up to 31.03.2024
115
UL(VNO) agreement updated up to 31.03.2024 115
Annexure-A
Proforma for Affidavit regarding details of calculation of “Revenue” and “License Fee
AFFIDAVIT
I ……………………………….., aged about ………….. years son of Shri …………………,
resident of ………………………………………………., do solemnly affirm and state as
under:
1.
That I am …………… …………………….of ………………………… (Name of the
Company),
licensee
of
……………………………………….
Service
in
…………………………..Service Area and I am duly authorised by the resolutions dated
…………………………. passed by Board of Directors of the Company to furnish affidavit
on behalf of ………………………….( Name of the Company).
2.
That in compliance of condition No.. ………. of Schedule…………..Part ……….
and Annexure……of the License Agreement No. ……………………… signed between
the Company and the Department of Telecommunications, for payment of license fee, a
payment of Rs. ………………….. (Rupees ………. ………………………. is being made
for the period ………………….. to ………………………….. . The details of calculation
of ‘revenue’ and license fee is as per Annexure …… (attached).
3.
That the contents in Para 2 & 3 and Annexure ……. are true and correct to the
best of my knowledge, based on the records of the company.
Deponent.
VERIFICATION
Verified at ………………….. on ……………………….. that the contents of paragraphs 1
to 3 of the affidavit and Annexure…… are true and correct to my knowledge, no part of
it is false and nothing has been concealed there from.
Deponent.
UL(VNO) agreement updated up to 31.03.2024 116
Appendix-I to Annexure -A
Format of AUDITOR’s Report on Statements of Revenue and License Fee
To
The Board of Directors,
……………………….
……………………….
We have examined the attached Statement of Revenue and License Fee of
………………………. ………………………. (the name of the OPERATORs) for the
quarter(s) ending ………………………. . We have also examined the reconciliation of
the cumulative figures for the quarter(s) ending ………………………. appearing in the
Statement of Revenue and License Fee of the company with the figures appearing in the
profit and loss account of the company for the year ended ………………………. which
was audited by us. We understand that the aforesaid statement(s) (and the
reconciliation) is / are to be furnished to the Central Government for assessment of the
License Fee paid/payable by the company to the Government, in terms of the LICENSE
AGREEMENT No. ……………………… signed between the company and the
Department of Telecommunications. We report that:
1. We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit.
2. In our view, the company has an adequate internal control system in relation to
revenues which is commensurate with its size and the nature of its business. The
system, in our opinion, provides reasonable assurance that there is no unrecorded
revenue and that all revenue is recorded in the proper amount and in the proper period.
3. No amounts payable in respect of sales tax, service tax or PSTN/ toll/roaming
charges were outstanding at the last day of the quarter(s) for a period of more than
two months from the date they became payable, except for the following: …………
4. In our opinion and to the best of our knowledge and belief and according to the
explanations given to us, the Statement has been prepared in accordance with the
norms/ guidelines contained in the said LICENSE AGREEMENT in this behalf and
gives a true and fair view of the revenue and License Fee paid/payable for the period
computed on the basis of the aforesaid guidelines except for the following:
(Seal and Signature )
Place & Date
* Strike off wherever not applicable.
UL(VNO) agreement updated up to 31.03.2024
117
UL(VNO) agreement updated up to 31.03.2024 117
Appendix-II to Annexure – A
45Format of Statement of Revenue and License Fee --------------- (Name and address of
operator)
VNO - Resale of IPLC Service
Statement of revenue and LICENCE Fee for the Quarter -------------Of the financial year --
--------------
(AMOUNT IN RUPEES)
S.
No
.
PARTICULARS
ACTUALS
FOR THE
PREVIOUS
QUARTER
ESTIMATED
FOR THE
CURRENT
QUARTER
CUMULATIVE
UPTO THE
PREVIOUS
QUARTER
1.
Revenue from IPLC
A
Revenue
i.
IPLC revenue
ii.
Pass thru revenue for usage of
other
networks
(give
OPERATOR-wise details)
iii.
Goods & Service Tax (GST)
iv.
Service charges
v.
Charges on account of any other
value
added
services,
Supplementary Services etc.
vi.
Any other income /
Miscellaneous receipt.
2.
Income from investments.
i.
Interest income
ii.
Dividend income
iii.
Any other miscellaneous receipt
from investments.
3.
Non-refundable deposits from
Subscribers
4.
Revenue from franchisees
5.
Revenue from sharing/leasing
of infrastructure
45 Amendment vide DoT letter no. 20-271/2010-AS-I(Vol.V) dated 25th October, 2021
UL(VNO) agreement updated up to 31.03.2024 118
6.
Revenue from sale/ lease of
bandwidth, links, R&G cases,
turnkey projects etc.
7.
Revenue
from
other
OPERATORs on account of
pass thru call charges.
8.
Revenue
from
other
OPERATORs on account of
provisioning
of
interconnection
9.
Revenue
from
Operations/
Activities other than Telecom
Operations/ Activities as well
as revenue from activities
under a license from Ministry
of
Information
and
Broadcasting
10. Miscellaneous Revenue
AA GROSS REVENUE OF THE
Licensee COMPANY(ADD 1-
10):
BB Less
1.
Revenue from operations other
than
telecom
activities/
operations
2.
Revenue from activities under a
license
from
Ministry
of
Information and Broadcasting
3.
Receipt from USO Fund
4.
Items of ‘Other Income’ as listed
in Annexure- VII
i.
Income from Dividend
ii.
Income from Interest
iii.
Capital Gains on account of
profit of Sale of fixed assets and
securities
iv.
Gains from Foreign Exchange
rates fluctuations
v.
Income from property rent
vi.
Insurance claims
vii.
Bad Debts recovered
UL(VNO) agreement updated up to 31.03.2024
119
UL(VNO) agreement updated up to 31.03.2024 119
viii. Excess Provisions written back
BB Total BB (1+2+3+4):
CC APPLICABLE
GROSS
REVENUE (ApGR) (AA-BB)
DD Less:
1.
Charges actually paid to other
telecom service providers for
procurement of bandwidth, last
mile
connectivity
used
for
provision of end to end IPLC;
(note: Any charges paid for
multiplexing,
de-multiplexing,
billing
system
and
related
customer management are not
to be deducted.) (Operator wise)
(Copy of agreement to be
provided in the first year).
2.
Charges actually paid to NSO
towards
Bulk/
wholesale
bandwidth,
leased
line
and
bandwidth charges.
3.
Goods and Service Tax paid to
the Government.
DD TOTAL
DEDUCTIBLE
REVENUE (1+2+3)
EE ADJUSTED
GROSS
REVENUE:(CC-DD)
REVENUE SHARE @…………
OF
ADJUSTED
GROSS
REVENUE:
UL(VNO) agreement updated up to 31.03.2024 120
Annexure – B
NORMS FOR PREPARATION OF ANNUAL FINANCIAL STATEMENTS
Accounts shall be maintained separately for each telecom service operated by the
Licensee company.
Any category of accrued revenue, the amount of which exceeds 5% of the total accrued
revenue, shall be shown separately and not combined with any other item/ category.
Accrued revenue shall indicate:
(a) All amounts billable for the period
(b) Any billings for previous years that had been omitted from the previous years’ P&L
Accounts.
(c) Any non-refundable deposits collected from the Customers/ franchisees to the extent
these are credited to P&L Account for the year.
Subsidiary registers/ ledgers shall be maintained for each item given above so also
enable easy verification.
Service revenue (amount billable) shall be shown gross and details of discount/rebate
indicated separately. Charges paid to NSO(s) shall be limited to applicable access
charges such as carriage charges, termination charges and roaming charges.
Security or any other deposits taken from the subscribers shall be shown separately, for
each category, and the amount that has fallen due for refund but not yet paid also
disclosed under two categories, namely:
o Up to 45 days
o More than 45 days
Service Tax billed, collected and remitted to the Government shall be shown separately.
Sales Tax billed, collected and remitted to the Government shall be shown separately.
Details of Income from sales of goods shall be furnished indicating the income and
number of items sold under each category. Method of inventory valuation used shall also
be disclosed along with computation of cost of goods sold.
Sales shall be shown gross and details of discount/ rebate allowed and of sales returns
shall be shown separately.
Income from interest and dividend shall be shown separately, without any related
expenses being set-off against them on the income side of the P&L Account.
Increase / decrease of stock shall be shown separately.
Details of reversal of previous years’ debits, if any, shall be shown component-wise, under
the miscellaneous head. (e.g. Bad debts recovered, etc.)Item-wise details of income that
has been set off against corresponding expenditure.
UL(VNO) agreement updated up to 31.03.2024
121
UL(VNO) agreement updated up to 31.03.2024 121
CHAPTER-XVI
ACCESS SERVICE Category B
1.
Service Area: The Service Area of Access Service shall be geographical area of
a district of a State/Union Territory. License/Authorization for Access Service, if granted
for more than one district, shall be administered separately for each district as per terms
and conditions contained in Part-I and in this chapter.
2.
Scope of Access Service: Scope of this authorization covers the following:
2.1(i) The Access Service under this authorization covers collection, carriage,
transmission and delivery of voice and/or non-voice MESSAGES over Licensee’s & or
NSO’s wireline network in the designated Service Area. The Licensee can also provide
Internet Telephony, Internet Services including IPTV, Broadband Services and triple play,
i.e. voice, video and data. While providing Internet Telephony service, the Licensee’s
parent NSO may interconnect Internet Telephony network with PSTN network. The
Licensee may provide wireline access service only.
(ii)
The Licensee can acquire customer for delivery of services offered in its network
and/or NSO’s network using only the technology deployed by the NSO(s).
(iii) The Licensee may provide leased circuits within its respective service area.
Interconnection of leased circuits, whether point to point or in CUG network, with PSTN
Network is not permitted.
(iv) The Licensee may also provide Voice Mail/Audiotex/Unified Messaging services,
Video Conferencing over its network to the subscribers falling within its SERVICE AREA
on non-discriminatory basis. All the revenue earned by the Licensee through these
services shall be counted towards the revenue for the purpose of paying License Fee
under the LICENSE AGREEMENT.
(v) Except those services permitted under the scope of this authorization, the Licensee
shall not provide any service / services which require a separate service authorization /
license.
2.2
For providing service, the Licensee may setup and operate rural telephone
exchange and last mile linkages thereof. Cable Operators registered under The Cable
Television Networks (Regulation) Act, 1995 and the amendments thereto may act as
VNO to provide Internet and Voice services, to use the last mile linkages in rural area.
2.3
IP Address assigned to a subscriber for Internet Telephony shall conform to IP
addressing Scheme of Internet Assigned Numbers Authority (IANA) only. Translation of
E.164 number / private number to IP address and vice versa by the licensee for this
purpose shall be as per directions/instructions issued by the Licensor.
2.4
For provision of Internet Telephony, Internet Services, Broadband Services and
triple play, i.e. voice, video and data, the Conditions No. 2.1(i), 2.1(vii), 2.2, 5, 6, and 7 of
Chapter IX (Internet Service) shall also be applicable.
UL(VNO) agreement updated up to 31.03.2024 122
3.
FINANCIAL CONDITIONS
3.1
GROSS REVENUE
The Gross Revenue shall be inclusive of installation charges, late fees, sale proceeds of
handsets (or any other terminal equipment, etc.), revenue on account of interest,
dividend, value added services, supplementary services, revenue earned from parent
NSO(s), revenue from permissible sharing of infrastructure and any other miscellaneous
revenue, without any set-off for related item of expense, etc.
3.1A Applicable Gross Revenue (ApGR):
ApGR shall be equal to Gross Revenue (GR) of the licensee as reduced by the items
listed below:
(i) Revenue from operations other than telecom activities/ operations.
(ii) Revenue from activities under a license/ permission issued by Ministry of
Information and Broadcasting.
(iii) Receipts from the USO Fund.
(iv) List of other income* to be excluded from GR to arrive at ApGR
a. Income from Dividend
b. Income from Interest
c. Capital Gains on account of profit of Sale of fixed assets and securities
d. Gains from Foreign Exchange rates fluctuations
e. Income from property rent
f. Insurance claims
g. Bad Debts recovered
h. Excess Provisions written back
*Subject to conditions given in Annexure VII.
3.2
Adjusted Gross Revenue (AGR)
For the purpose of arriving at the “Adjusted Gross Revenue (AGR)”, following shall be
excluded from the Applicable Gross Revenue (ApGR):
a. Charges paid to its parent NSO(s) towards applicable access charges such as
carriage charges, termination charges and roaming charges.
b. Charges paid to NSOs towards Bulk/Wholesale bandwidth, leased line and
bandwidth charges, minutes and SMSs. However, these charges should be
governed by a written agreement, a copy of which must be provided along with
the proof of actual payment for the deduction to be allowed.
c. Goods and Service Tax (GST) paid to the Government if Applicable Gross Revenue
(ApGR) had included the component of GST.
4.
Technical & Operating Conditions
4.1
The sharing of infrastructure, owned, established and operated by the Licensee
under the scope of this Authorization, is permitted as below:
UL(VNO) agreement updated up to 31.03.2024
123
UL(VNO) agreement updated up to 31.03.2024 123
(i)
Sharing of “passive” infrastructure viz., building, dark fiber, duct space, Right of
Way, etc. with other Licensees TSPs.
(ii)
Provision of point to point bandwidth from their own infrastructure within their
Service Area to other licensed telecom service providers for their own use. However, the
Licensee hiring the bandwidth shall not resell such bandwidth.
4.2
Further, the Licensee may share its own active and passive infrastructure for
providing other services authorized to it under the license.
4.3
Moreover, sharing of active infrastructure with other licensees shall be governed
by the license conditions/amendments issued by the Licensor from time to time.
4.4 Location of switches and other network elements: The licensee shall install applicable
system within its service area if required.
5.
Network Interconnection:
5.1
Network interconnection will be provided by NSO and not the licensee. The
licensee will connect to its parent NSO (s).
465.2 For wire line access services through EPABX, the connectivity of different NSOs
at different EPABX is allowed, however, for connectivity with more than one NSO at a
particular EPABX the licensee shall ensure non-breachable logical/virtual partitioning in
the EPABX and logical separation of junctions from different NSOs, with no inter NSO
call flow. Also, the EPABX should not support internet connectivity and NLD/ILD calls
shall be ensured through normal NLD/ILD network only & shall in no way directly or
indirectly cause bypass of licensed National Long Distance Operator (NLDO)/
International Long Distance Operator (ILDO) jurisdiction. Further, licensee shall intimate
to its NSO(s) and the Licensor regarding connectivity of more than one NSO at a
particular EPABX.
6.
Emergency and Public Utility Service:
6.1
The LICENSEE shall provide all public utility services as well as emergency
services including toll free services like police, fire, ambulance through parent NSO.
7.
Security Conditions (Applicable if Network is owned by Licensee):
7.1
The designated person of the Central/ State Government as conveyed to the
Licensor from time to time in addition to the Licensor or its nominee shall have the right
to monitor the telecommunication traffic in every Exchange/ Routers or any other
technically feasible point in the network set up by the Licensee. The Licensee should
make arrangement for monitoring simultaneous calls by Government security agencies
in case equipment for monitoring is available with licensee. For establishing connectivity
to Centralized Monitoring System, the Licensee at its own cost shall provide appropriately
dimensioned hardware and bandwidth/dark fiber up to a designated point as required by
Licensor from time to time. However, the respective Government agency shall bear the
cost of hardware at its end and leased line circuits from the MSC/ Exchange/Router or
from the designated point as the case may be, to its monitoring centre to be located as
per its choice in its premises or in the premises of the Licensee. In case the security
agencies intend to locate the equipment at Licensee’s premises for facilitating monitoring,
46Amended vide letter no 20-562/2017 AS-I dated 02.03.2020
UL(VNO) agreement updated up to 31.03.2024 124
the Licensee should extend all support in this regard including Space and Entry of the
authorized security personnel.
The Interface requirements as well as features and facilities as defined by the
Licensor should be implemented by the Licensee for both data and speech. The Licensee
should ensure suitable redundancy in the complete chain of Lawful Interception and
Monitoring equipment for trouble free operations of monitoring of simultaneous calls as
per requirement, in case equipment is with Licensee. The above provisions and no. of
designated security/ law enforcement agencies may be amended by the Licensor
separately by issuing instructions at any time.
7.2
Along with the monitored call, Call Related Information (CRI) shall be supplied in
the format prescribed from time to time, which shall at least have the following records:
(i) Called/calling party mobile/ PSTN numbers.
(ii) Time/date and duration of call.
(iii) Telephone numbers if any call-forwarding feature has been invoked by target
subscriber.
(iv) Data records for failed call attempts.
(v) CDR (Call Data Record) of Subscriber.
The Licensor reserves the right to modify the requirement of records in respect of CRI
any time.
The Licensee shall be required to provide the call data records of all the specified
calls handled by the system at specified periodicity, as and when required by the security
agencies in the format prescribed from time to time.
7.3 The call detail records for outgoing calls made by those subscribers making large
number of outgoing calls day and night to the various telephone numbers with normally
no incoming calls, should be analyzed. The service provider should run special
programme, devise appropriate fraud management and prevention programme and fix
threshold levels of average per day usage in minutes of the telephone connection; all
telephone connections crossing the threshold of usage should be checked for bonafide
use. A record of check must be maintained which may be verified by Licensor any time.
The list/details of suspected subscribers should be informed to the respective TERM Cell
of DoT and any other officer authorized by Licensor from time to time.
7.4
CLI Restriction (CLIR) should not be normally provided, if equipment is with
licensee, to the customers. Due verification for the reason of demanding the CLIR, must
be done before provision of the facility. It shall be the responsibility of the service provider
to work out appropriate guidelines to be followed by their staff members to prevent
misuse of this facility. The subscribers having CLIR should be listed in a password
protected website with their complete address and details so that authorized Government
agencies can view or download for detection and investigation of misuse. While providing
CLIR facility to subscriber, it shall be ensured that the CLI is carried from end to end on
the network. However, CLIR must not be provided in case of bulk connections, call
centers, telemarketing services.
UL(VNO) agreement updated up to 31.03.2024
125
UL(VNO) agreement updated up to 31.03.2024 125
ANNEXURE-A
(Proforma for Affidavit regarding details of calculation of “Revenue” and “License Fee”)
AFFIDAVIT
I ……………………………….., aged about ………….. years son of Shri …………………,
resident of ………………………………………………., do solemnly affirm and state as
under:
1.
That I am …………… …………………….of ………………………… (Name of the
Company),
LICENSEE
of
……………………………………….
Service
in
…………………………..Service Area and I am duly authorized by the resolutions dated
…………………………. Passed by Board of Directors of the Company to furnish affidavit
on behalf of ………………………….( Name of the Company).
2.
That in compliance of Condition No.. ………. of Schedule…………..Part ……….
and Annexure……of the License Agreement No. ……………………… signed between
the Company and the Department of Telecommunications, for payment of License fee, a
payment of Rs. ………………….. (Rupees ………. ………………………. is being made
for the period ………………….. to ………………………….. . The details of calculation
of ‘Revenue’ and License fee is as per Appendix-II …… (attached).
3.
That the contents in para 2 & 3 and Statement made in Annexure ___ are true
and correct to the best of my knowledge, based on the records of the company.
Deponent.
VERIFICATION:
Verified at ___________ on ___________ that the contents of paragraphs 1 to 3
of this Affidavit and attached ‘Statement of Revenue and License Fee’ as Annexure are
true and correct to the best of my knowledge, no part of it is false and nothing has
been concealed therefrom.
Deponent.
UL(VNO) agreement updated up to 31.03.2024 126
APPENDIX-I to ANNEXURE-A
Format of Auditor’s Report on Statement of Revenue And License Fee
To
The Board of Directors
……………………….
……………………….
We have examined the attached Statement of Revenue and License Fee of
………………………………………(the name of the operators) for the quarter(s) ending
_____________. We have also examined the reconciliation of the cumulative figures
for the quarter(s) ending _________ appearing in the Statement of Revenue and License
Fee of the company with the figures appearing in the profit and loss account of the
company for the year ended_________ which was audited by us. We understand that
the aforesaid statement(s) ( and the reconciliation) is /are to be furnished to the Central
Government for assessment of the License fee paid/ payable by the company to the
Government, in terms of the License agreement No…………………. signed between the
company and the Department of Telecommunications.
We report that:
1.
We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
2.
In our view, the company has an adequate internal control system in relation to
revenues which is commensurate with its size and the nature of its business. The
system, in our opinion, provides reasonable assurance that there is no unrecorded
revenue and that all revenue is recorded in the proper amount and in the proper
period.
3.
No amounts paid/payable in respect of sales tax, service tax or PSTN/toll/roaming
charges were outstanding at the last day of the quarter(s) for a period of more than
two months from the date they became payable, except for the following:……
4.
In our opinion and to the best of our knowledge and belief and according to the
explanations given to us, the Statement has been prepared in accordance with
the norms/guidelines contained in the said License agreement in this behalf and
gives a true and fair view of the revenue and License fee paid/payable for the
period computed on the basis of the aforesaid guidelines except for the following:
*
Strike off wherever not applicable.
(SIGNATURE)
UL(VNO) agreement updated up to 31.03.2024
127
UL(VNO) agreement updated up to 31.03.2024 127
APPENDIX-II to ANNEXURE-A
47Format of Statement of Revenue and License Fee ___________(Name and address of
operator)
Access Services Category ‘B’ in___________________( Service Area)
Statement of Revenue and License Fee for the Quarter ……..… of the financial
year…………..
(AMOUNT IN RUPEES)
S.N. PARTICULARS
ACTUALS
FOR
THE
PREVIOUS
QUARTER
ACTUALS
FOR
THE
CURRENT
QUARTER
CUMULATIVE
UPTO
THE
CURRENT
QUARTER.
1
Revenue
from
wire-line
services:
(i)
Rentals
(ii)
Call revenue
(iii)
Goods & Service Tax (GST)
(iv)
Service charges
(v)
Charges on account of any other
value
added
services,
Supplementary Services etc.
(vi)
Any
other
income
/
miscellaneous
receipt
from
wireline subscribers.
2
Revenue from sharing/ leasing
of infrastructure
3
Revenue from sale/ lease of
bandwidth, links, R&G cases,
turnkey projects etc.
4
Revenue from NSO on account
pass through & other misc.
Charges + misc. Revenue.
5
Any other Income
6.
Revenue
from
Operations/
Activities other than Telecom
Operations/ Activities as well
as revenue from activities
under a license from Ministry
of
Information
and
Broadcasting
7.
Miscellaneous Revenue
47 Amendment vide DoT letter no. 20-271/2010-AS-I(Vol.V) dated 25th October, 2021
UL(VNO) agreement updated up to 31.03.2024 128
AA
GROSS REVENUE OF THE
Licensee COMPANY: (Add 1-
7)
BB
Less
1.
Revenue from operations other
than
telecom
activities/
operations
2.
Revenue from activities under a
license
from
Ministry
of
Information and Broadcasting
3.
Receipt from USO Fund
4.
Items of ‘Other Income’ as listed
in Annexure- VII
i.
Income from Dividend
ii.
Income from Interest
iii.
Capital Gains on account of profit
of Sale of fixed assets and
securities
iv.
Gains from Foreign Exchange
rates fluctuations
v.
Income from property rent
vi.
Insurance claims
vii.
Bad Debts recovered
viii.
Excess Provisions written back
BB
Total BB (1+2+3+4):
CC
APPLICABLE
GROSS
REVENUE (ApGR) (AA-BB)
DD
Less:
1.
Charges actually paid to parent
NSO(s)
towards
applicable
access charges such as carriage
charges, termination charges
and roaming charges.
2.
Charges actually paid to NSOs
towards
Bulk/
Wholesale
bandwidth,
leased
line
and
bandwidth charges, minutes and
SMSs
3.
Goods and Service Tax paid to
the Government
DD
TOTAL
DEDUCTIBLE
REVENUE (1+2+3)
EE
ADJUSTED GROSS REVENUE
(CC-DD)
REVENUE SHARE @ -------------
---- OF ADJUSTED GROSS
REVENUE
UL(VNO) agreement updated up to 31.03.2024
129
UL(VNO) agreement updated up to 31.03.2024 129
ANNEXURE-B
NORMS FOR PREPARATION OF ANNUAL FINANCIAL STATEMENTS
Accounts shall be maintained separately for each telecom service operated by the
Licensee company.
Any category of accrued revenue, the amount of which exceeds 5% of the total accrued
revenue, shall be shown separately and not combined with any other item/category.
Accrued Revenue shall indicate:
(a)
All amounts billable for the period.
(b)
Any billings for previous years that had been omitted from the previous years’ P&L
Accounts.
(c)
Any non-refundable deposits collected from the customers/franchisees to the
extent these are credited to P&L Account for the year.
Subsidiary registers/ledgers shall be maintained for each item given above so as to
enable easy verification.
Service revenue (amount billable) shall be shown gross and details of discount/rebate
indicated separately. Charges paid to NSO(s) shall be limited to applicable access
charges such as carriage charges, termination charges and roaming charges.
Security or any other Deposits taken from the subscriber shall be shown separately, for
each category, and the amount that has fallen due for refund but not yet paid also
disclosed under two categories, namely:
o Up to 45 days
o More than 45 days.
Service Tax billed, collected and remitted to the Government shall be shown
separately.
Sales Tax billed, collected and remitted to the Government shall be shown separately.
Details of Income from sales of goods shall be furnished indicating the income and
number of items sold under each category. Method of inventory valuation used shall
also be disclosed along with computation of cost of goods sold.
Sales shall be shown gross and details of discount/rebate allowed and of sales returns
shall be shown separately.
Income from interest and dividend shall be shown separately, without any related
expenses being set-off against them on the income side of the P&L Account.
Increase/decrease of stock shall be shown separately.
Details of reversal of previous years’ debits, if any, shall be shown component-wise,
under the miscellaneous head (eg. Bad debts recovered, etc.)
UL(VNO) agreement updated up to 31.03.2024 130
Item-wise details of income that has been set off against corresponding expenditure.
Roaming Charges shall be shown under the following heads separately;
(a)
Roaming airtime charges collected for each external network from own (home)
subscribers.
(b)
Roaming airtime charges actually remitted to each external network.
(c)
Roaming commission retained (Network-wise)
(d)
Roaming commission paid (Network-wise)
(e)
Any other variable charges collected and retained/passed on to other
operators, with details.
Total Airtime Units (Metered Units) for home and visiting subscribers and unbilled
numbers (e.g. service connections) to be furnished separately.
UL(VNO) agreement updated up to 31.03.2024
131
UL(VNO) agreement updated up to 31.03.2024 131
CHAPTER-XVII
MACHINE TO MACHINE (M2M)
1.
Service Area: The License/Authorization for M2M are granted for three different
Categories namely Category ‘A’, Category ‘B’ and Category ‘C’. The Service Area for
Category ‘A’ authorization shall be the National Area. The Service Area for Category ‘B’
authorization shall be the Telecom Circle/Metro area as defined in Annexure-V. The
Service Area for Category ‘C’ authorization shall be the Secondary Switching Area (SSA)
as defined in Annexure-VII. If the Licensee desires to obtain M2M Category ‘C’
Authorization, under Unified License, for more than four SSAs in a Telecom Circle, the
Licensee shall be required to obtain M2M Category ‘B’ authorization for that Service Area.
License/Authorization for M2M, granted for more than one Service Area (Telecom
Circle/Metro/SSA), shall be administered at each Service Area level as per terms and
conditions contained in Part-I and in this chapter.
2.
Scope of M2M Service: Scope of this authorization covers the following:
2(i)
The Licensee can own the underlying network to provide connectivity and related
services for M2M Service Providers.
2(ii) The Licensee can perform functions such as:
(a) access and integration of resources provided by other providers;
(b) support and control of the M2M/IoT capable infrastructure;
(c) offering of M2M/IoT capabilities, including network capabilities and resource
exposure to other providers.
2(iii) The Licensee intending to provide services exclusively through the LPWAN or
equivalent technologies using unlicensed spectrum shall be covered under this
authorization. Such licensees may also use backhaul/ access spectrum of its NSO(s) to
provide M2M services exclusively, if they desire to provide M2M services in the licensed
band.
2(iv) Except those services permitted under the scope of this authorization, the
Licensee shall not provide any service / services which require a separate service
authorization / license.
2(v)
The UL(VNO) Licensees having Access Service authorization can provide the
M2M services covered under this authorization and need not to obtain this authorization
separately.
3.
FINANCIAL CONDITIONS
3.1
GROSS REVENUE: The Gross Revenue shall be inclusive of installation charges,
late fees, sale proceeds of M2M devices (or any other terminal equipment etc.), revenue
on account of interest, dividend, value added services, supplementary services, access
or interconnection charges, roaming charges, revenue from permissible sharing of
infrastructure and any other miscellaneous revenue, without any set-off for related item
of expense, etc.
UL(VNO) agreement updated up to 31.03.2024 132
3.1A Applicable Gross Revenue (ApGR):
ApGR shall be equal to Gross Revenue (GR) of the licensee as reduced by the items
listed below:
(i) Revenue from operations other than telecom activities/ operations.
(ii) Revenue from activities under a license/ permission issued by Ministry of
Information and Broadcasting.
(iii) Receipts from the USO Fund.
(iv) List of other income* to be excluded from GR to arrive at ApGR
a. Income from Dividend
b. Income from Interest
c. Capital Gains on account of profit of Sale of fixed assets and securities
d. Gains from Foreign Exchange rates fluctuations
e. Income from property rent
f. Insurance claims
g. Bad Debts recovered
h. Excess Provisions written back
*Subject to conditions given in Annexure VII.
3.2
Adjusted Gross Revenue (AGR): For the purpose of arriving at the “Adjusted
Gross Revenue (AGR)”, following shall be excluded from the Applicable Gross Revenue
(ApGR):
a) Charges paid to its parent NSO(s) towards applicable access charges such as
carriage charges, termination charges and roaming charges.
b) Charges paid to NSOs towards Bulk/ Wholesale bandwidth, leased line and
bandwidth charges. However, these charges should be governed by a written
agreement, a copy of which must be provided along with the proof of actual
payment for the deduction to be allowed.
c) Goods and Service Tax (GST) paid to the Government if Applicable Gross
Revenue (ApGR) had included the component of GST.
4.
Technical & Operating Conditions
4.1(i) The LPWAN networks can be deployed in large geographical areas such as Metro
cities, states or Pan-India, depending on the business case and market demand.
4.1(ii) In case the Licensee provides the M2M Communications Access using radio
access, the licensee shall adhere to the prevailing directions/instructions and shall also
abide by further directions / instructions as may be issued by Licensor from time to time
in this regard.
4(iii) For carrying originating and terminating traffic, the licensee may establish its own
transmission links within its service area. For this purpose, the Licensee may also
establish ‘Last Mile’ linkages within the service area either on fibre optic cable or radio
communication or underground copper cable. In case of radio links, procedure as
mentioned in Chapter VII of this License shall be applicable.
UL(VNO) agreement updated up to 31.03.2024
133
UL(VNO) agreement updated up to 31.03.2024 133
4(iv) The Licensee may share “passive” infrastructure namely building, tower, dark fibre,
duct space, Right of Way owned, established and operated by it under the scope of this
Authorization with other Licensees.
4(v)
Moreover, sharing of active infrastructure with other licensees shall be governed
by the license conditions/amendments issued by the Licensor from time to time.
5.
Provision of Services:
5.1
The Licensee can acquire customer for delivery of services offered in its network
using technology deployed by the Licensee. While roaming on other Licensees’ network,
the services availed by the subscriber shall be limited to only those services which have
been subscribed in its parent NSO’s home network.
5.2
For provision of the service by the Licensee, the Licensee may appoint or employ
franchisee, agents, distributors and employees. Responsibilities for ensuring compliance
of terms & conditions of the License shall vest with the Licensee and not with the
Franchisee. The terms of franchise agreement between Licensee and his franchisee
shall be settled mutually by negotiation between the two parties involved. The Licensee
shall report the details of such Franchisee to the Licensor as prescribed from time to time.
5.3 The Licensee shall have the right to undertake the sale, hire purchase, lease or
renting of the M2M devices/ equipment. Proper usage of M2M devices/ equipment at
subscriber's premises shall be as per agreement between the Licensee and subscriber.
5.4 Licensee shall ensure the Quality of Service (QoS) as may be prescribed by the
Licensor/TRAI. The Licensee shall adhere to such QoS standard and provide timely
information as required therein. In the present stage of deployment of M2M devices and
services, a duty cycle of 10% both at device level and network level shall be ensured.
5.5 Licensee shall adhere to Know Your Customer (KYC) and related guidelines
issued by the Licensor from time to time for all Telecom resources including SIM enabled
CPE.
5.6 The details of all the customers of M2M services i.e., physical custodian of M2M
devices having M2M subscription shall be maintained. Up-dated information regarding
(a) details of M2M devices, (b) Make, Model, Registration number etc. of the M2M
devices (i.e. Cars, Utility Meters, POS etc.) & (c) corresponding physical custodian’s
name and address shall be made available to Licensor. Any changes in customers and
M2M devices details shall be updated.
5.7 For all devices sold in India which have active subscription inside the device, the
packaging/ instructions/ supporting leaflet shall include instruction that “This device is
having subscription inside”.
5.8 Requirement to furnish information: The licensee shall provide to the licensor, a
quarterly report indicating the details of M2M Nodes or Points of Presence with their
locations and number of M2M subscribers.
6.
Network Interconnection:
6.1
A UL (VNO) Licensee with authorization for M2M shall parent to NSO(s) only. Any
interconnection with other Licensees shall be through the NSO to which it is parented.
UL(VNO) agreement updated up to 31.03.2024 134
7.
Security Conditions:
7.1
The Licensee shall maintain log-in/log-out details including IPDRs of all
subscribers for services provided. These details shall be maintained for a minimum
period of two year.
7.2
For the purpose of interception and monitoring of traffic, the copies of all the
packets originating from / terminating into the M2M devices/equipment shall be made
available to the Licensor/Security Agencies.
487.3 Deleted
497.4 Deleted
507.5 Deleted
7.6
The designated person of the Central/ State Government as conveyed to the
Licensor from time to time in addition to the Licensor or its nominee shall have the right
to monitor the telecommunication traffic in every M2M point in the network set up by the
Licensee. The Licensee should make arrangement for monitoring by Government
security agencies.
48 Amended vide DoT letter no 20-271/2010 AS-I (Vol. - III) dated 23.08.2022.
49 Amended vide DoT letter no 20-271/2010 AS-I (Vol. - III) dated 23.08.2022.
50 Amended vide DoT letter no 20-271/2010 AS-I (Vol. - III) dated 23.08.2022.
UL(VNO) agreement updated up to 31.03.2024
135
UL(VNO) agreement updated up to 31.03.2024 135
ANNEXURE-A
(Proforma for Affidavit regarding details of calculation of “Revenue” and “License Fee”)
AFFIDAVIT
I ……………………………….., aged about ………….. years son of Shri
…………………,
resident
of
……………………………………………….,
do
solemnly affirm and state as under:
2.
That I am …………… …………………….of ………………………… (Name of the
Company),
LICENSEE
of
……………………………………….
Service
in
…………………………..Service Area and I am duly authorized by the resolutions
dated …………………………. Passed by Board of Directors of the Company to
furnish affidavit on behalf of …………………………. (Name of the Company).
3.
That in compliance of Condition No.. ………. Of Schedule…………..Part ……….
And Annexure……of the License Agreement No. ……………………… signed
between the Company and the Department Of Telecommunications, for payment
of License fee, a payment of Rs. ………………….. (Rupees ……….
………………………. Is being made for the period ………………….. to
…………………………... The details of calculation of ‘revenue’ and License fee
is as per Appendix-II …… (attached).
4.
That the contents in para 2 & 3 and Statement made in Annexure ___ are true
and correct to the best of my knowledge, based on the records of the company.
Deponent.
VERIFICATION:
Verified at ___________ on ___________ that the contents of paragraphs 1 to 3
of this Affidavit and attached ‘Statement of Revenue and License Fee’ as Annexure are
true and correct to the best of my knowledge, no part of it is false and nothing has been
concealed therefrom.
Deponent.
UL(VNO) agreement updated up to 31.03.2024 136
APPENDIX-I to ANNEXURE-A
Format of Auditor’s Report On Statement Of Revenue And License Fee
To
The Board of Directors
……………………….
……………………….
We have examined the attached Statement of Revenue and License Fee of
………………………………………(the name of the operators) for the quarter(s) ending
_____________. We have also examined the reconciliation of the cumulative figures
for the quarter(s) ending _________ appearing in the Statement of Revenue and License
Fee of the company with the figures appearing in the profit and loss account of the
company for the year ended_________ which was audited by us. We understand that
the aforesaid statement(s) ( and the reconciliation) is /are to be furnished to the Central
Government for assessment of the License fee payable by the company to the
Government, in terms of the License agreement No…………………. signed between the
company and the Department of Telecommunications.
We report that:
1.
We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
2.
In our view, the company has an adequate internal control system in relation to
revenues which is commensurate with its size and the nature of its business. The
system, in our opinion, provides reasonable assurance that there is no unrecorded
revenue and that all revenue is recorded in the proper amount and in the proper
period.
3.
No amounts payable in respect of Goods and Service Tax (GST) or
PSTN/toll/roaming charges were outstanding at the last day of the quarter(s) for a
period of more than two months from the date they became payable, except for
the following:………
4.
In our opinion and to the best of our knowledge and belief and according to the
explanations given to us, the Statement has been prepared in accordance with
the norms/guidelines contained in the said License agreement in this behalf and
gives a true and fair view of the revenue and License fee payable for the period
computed on the basis of the aforesaid guidelines except for the following:
*
Strike off wherever not applicable.
(SIGNATURE)
UL(VNO) agreement updated up to 31.03.2024
137
UL(VNO) agreement updated up to 31.03.2024 137
APPENDIX-II to ANNEXURE-A
51Format of Statement of Revenue and License Fee_________(Name and address
of operator)
M2M Services in___________________(Service Area)Statement of Revenue and
License Fee for the Quarter ………………of the financial year…………………..
(AMOUNT IN RUPEES)
S
.
N
.
PARTICULARS
ACTUALS
FOR
THE
PREVIOUS
QUARTER
ACTUALS
FOR
THE
CURRENT
QUARTER
CUMULATIVE
UPTO
THE
CURRENT
QUARTER.
1
Revenue from services
A
Revenue
from
M2M
subscribers:
(i)
Rentals
(ii)
Activation Charges
(iii)
Goods and Service Tax (GST)
(iv)
Roaming charges
(v)
Service charges
(vi)
Charges on account of any other
value
added
services,
Supplementary Services etc.
(vii)
Any
other
income
/
miscellaneous receipt from M2M
subscribers.
B
Revenue from any other value
added service
2
Income from trading activity
i.
Sale of M2M device {Excluding
Goods and Service Tax (GST)}
Ii
Sale
of
accessories
etc.
{Excluding Goods and Service
Tax (GST)}
iii.
Any
other
income/
miscellaneous
receipt
from
trading
activity.
{Excluding
Goods and Service Tax (GST)}
iv.
Goods and Service Tax (GST)
3
Revenue from roaming.
i.
Roaming facility revenue from
own subscribers.
ii.
Roaming revenue from own
subscriber
visiting
other
networks .
51 Amendment vide DoT letter no. 20-271/2010-AS-I(Vol.V) dated 25th October, 2021
UL(VNO) agreement updated up to 31.03.2024 138
iii.
Roaming Commission earned.
iv.
Roaming revenue on account of
visiting subscribers from other
networks (provide operator-wise
details).
v.
Goods and Service Tax (GST) if
not included above.
vi.
Any other income/miscellaneous
receipt from roaming.
4
Income from investments
(i)
Interest income
(ii)
Dividend income
(iii)
Any other miscellaneous receipt
from investments.
5
Non-refundable deposits from
subscribers
6
Revenue
from
franchisees
/resellers
including
all
commissions and discounts
etc. excluding the revenues
already included in IA&IB
7
Revenue from sharing/ leasing
of infrastructure
8
Revenue from other Operators
on account of pass through
call charges (provide operator-
wise details).
9
Revenue from other Operators
on account of provisioning of
interconnection
(provide
operator-wise details)
10
Miscellaneous revenue
11
Revenue
from
Operations/
Activities other than Telecom
Operations/ Activities as well
as revenue from activities
under a license from Ministry
of
Information
and
Broadcasting
AA
GROSS REVENUE OF THE
Licensee COMPANY: (Add 1-
11)
BB
Less
UL(VNO) agreement updated up to 31.03.2024
139
UL(VNO) agreement updated up to 31.03.2024 139
1.
Revenue from operations other
than
telecom
activities/
operations
2.
Revenue from activities under a
license
from
Ministry
of
Information and Broadcasting
3.
Receipt from USO Fund
4.
Items of ‘Other Income’ as listed
in Annexure- VII
i.
Income from Dividend
ii.
Income from Interest
iii.
Capital Gains on account of profit
of Sale of fixed assets and
securities
iv.
Gains from Foreign Exchange
rates fluctuations
v.
Income from property rent
vi.
Insurance claims
vii.
Bad Debts recovered
viii.
Excess Provisions written back
BB
Total BB (1+2+3+4):
CC
APPLICABLE
GROSS
REVENUE (ApGR) (AA-BB)
1
Goods and Service Tax paid/
payable to the Government
2
Charges actually paid to parent
NSO(s)
towards
applicable
access charges such as carriage
charges, termination charges
and roaming charges
3
Charges actually paid to NSO
towards
Bulk/
wholesale
bandwidth,
leased
line
and
bandwidth charges.
DD
TOTAL
DEDUCTIBLE
REVENUE (1+2+3)
EE
ADJUSTED GROSS REVENUE
(CC-DD)
REVENUE SHARE @ -------------
---- OF ADJUSTED GROSS
REVENUE
UL(VNO) agreement updated up to 31.03.2024 140
Annexure – B
NORMS FOR PREPARATION OF ANNUAL FINANCIAL STATEMENTS
Accounts shall be maintained separately for each telecom service operated by the
Licensee company.
Any category of accrued revenue, the amount of which exceeds 5% of the total
accrued revenue, shall be shown separately and not combined with any other
item/ category.
Accrued revenue shall indicate:
(a) All amounts billable for the period
(b) Any billings for previous years that had been omitted from the previous years’
P&L Accounts.
(c) Any non-refundable deposits collected from the Customers/ franchisees to the
extent these are credited to P&L Account for the year.
Subsidiary registers/ ledgers shall be maintained for each item given above so
also enable easy verification.
Service revenue (amount billable) shall be shown gross and details of
discount/rebate indicated separately.
Security or any other deposits taken from the subscribers shall be shown
separately, for each category, and the amount that has fallen due for refund but
not yet paid also disclosed under two categories, namely:
o Up to 45 days
o More than 45 days
Goods and Service Tax (GST) billed, collected and remitted to the Government
shall be shown separately.
Details of Income from sales of goods shall be furnished indicating the income and
number of items sold under each category. Method of inventory valuation used
shall also be disclosed along with computation of cost of goods sold.
Sales shall be shown gross and details of discount/ rebate allowed and of sales
returns shall be shown separately.
Income from interest and dividend shall be shown separately, without any related
expenses being set-off against them on the income side of the P&L Account.
Increase / decrease of stock shall be shown separately.
Details of reversal of previous years’ debits, if any, shall be shown component-
wise, under the miscellaneous head. (e.g. Bad debts recovered etc.)
Item-wise details of income that has been set off against corresponding
expenditure.
UL(VNO) agreement updated up to 31.03.2024
141
UL(VNO) agreement updated up to 31.03.2024 141
Annexure-I
Definition of Terms and expressions
Unless the context otherwise requires, the different terms and expression used
shall have the meaning assigned to them in the following paragraphs:
1.
ACCESS GATEWAY (AG): The AG is located in the service provider’s network.
It supports the line side interface to the core IP network for use by phones, devices, and
PBXs. This element provides functions such as media conversion (circuit to Packet,
Packet to circuit) and echo control.
2.
ACCESS SERVICES (AS) means telecommunication service provided to subscribers by
means of a telecommunication system for the conveyance of voice or non-voice messages
through wired or wireless telegraphy on the network of the Access Service Provider. The
subscriber shall have identity indicated by a number or any other address approved by the
Licensor. The subscriber shall be registered and authenticated by the network of Access Service
Provider. Access Service does not cover broadcasting of any voice or non-voice messages.
However, Cell Broadcast is permitted only to the subscribers of the service. Scope of Service
provided under the Access Service Authorization shall be governed by the terms and conditions
as provided in Chapter VIII.
3.
ACCESS SPECTRUM means the Radio Frequency Spectrum allotted for use to carry
voice or non-voice messages from subscriber terminal to the Base Station/designated point of
aggregation.
Note: The Access Spectrum for the purpose of this license shall mean spot frequency allocation
in frequency bands considered for spectrum cap in NIA’s of auction of spectrum from November,
2012 onward. At present, such frequency bands are in 800/900/1800/2100/2300/2500 MHz
bands
4.
APPLICABLE SYSTEMS means all the necessary equipment, systems / sub-systems
and components of the network engineered to meet relevant ITU standards, ITU-T, ITU-R
recommendations, TEC specifications and International standardization bodies, such as, ITU,
ETSI, IEEE, ISO, IEC, etc. or International Fora, viz., 3GPP, 3GPP-2, IETF, MEF, WiMAX, Wi-
Fi, IPTV, IPv6, etc. for provision of SERVICE in accordance with operational, technical and quality
requirements and other terms and conditions of the License Agreement.
5.
AUDITOR means the Licensee’s auditor for the time being appointed for the purpose and
in accordance with the provisions of the Companies Act, 2013.
6.
BASE STATION means a fixed radio transmitter/receiver station, which provides a link
between the Mobile Station and Mobile Switching Centre (MSC).
7.
BASE STATION CONTROLLER or BSC means a network element to control a
set of base stations and connected to such Base Stations through certain transmission
media.
8.
BSNL means Bharat Sanchar Nigam Limited and/ or its successors.
9.
CALLING LINE IDENTIFICATION (CLI) means identity of the calling/originating
subscriber in terms of the telephone number assigned as per E.164 of ITU
Recommendation/IP Address or any other identification as may be prescribed by the
Licensor from time to time.
10.
CELL means a geographical area served by Station for Wireless Telegraphy
which is dedicated to transmitting or receiving Messages which have been or are to be
conveyed by Telecommunication systems designed or adapted to, and capable of being
used while in motion situated for the time being in that area.
UL(VNO) agreement updated up to 31.03.2024 142
11.
CELLULAR MOBILE TELEPHONE SERVICE (CMTS) means a mobile
telecommunication service provided through a radio network distributed over
geographical areas called Cells, each served by at least one Base Station and in which
the radio frequencies are used to connect the Mobile Stations to telecommunication
systems which are designed or adapted to be capable of being use while in motion and
are assigned automatically. Further, the system providing the service is capable of
handing-off the messages automatically, while the Mobile Station moves from Cell to
Cell.
12.
CLOSED USER GROUP (CUG):
A Closed User Group is Permissible for following categories of business
association:-
i)
Producer of goods and his trader/agent;
ii)
Provider of service and his trader/agent;
iii)
Producer of same category of goods (e.g. manufactures of petroleum
products); and
iv)
Provider of the same category of service (e.g., bank).
Provided that ultimate consumer of a service or a product shall not be a part of the Closed
User Group.
A Closed User Group can also be formed among a holding company and its subsidiaries,
these terms being defined as per the Companies Act 2013. Provided that such Closed
User Group shall be only for the purposes of legitimate internal business communications
of the group.
13.
CONNECTABLE SYSTEM means a telecommunication system which is
authorized to be run under a License to provide public telecommunications service and
is authorized to be connected to the Applicable system.
14.
CORE NETWORK is also known as backbone. Core network is a part of network
that connects different parts of Access Network. The core network also provides gateway
to other networks.
15.
CUSTOMER means any person or legal entity, which subscribes to / avails of the
service from the Licensee. In this License, the words ‘Customer’ and ‘Subscriber’ have
been used interchangeably.
16.
DESIGNATED AUTHORITY means the entity who is authorized or empowered
by the Licensor to issue instructions and to seek adherence to them.
17.
DIRECT EXCHANGE LINE (DEL) means a telephone connection between the
subscriber’s terminal equipment and the terminal exchange.
18.
DISPUTES SETTLEMENT: As per provisions of Telecom Regulatory Authority of
India Act, 1997, the dispute between Licensee and the Licensor shall be settled in the
Telecom Disputes Settlement and Appellate Tribunal, if such dispute arises out of or
connected with the provisions of this AGREEMENT. In the event of any amendment or
modification or replacement of TRAI Act, 1997 such modified provisions shall apply for
adjudication of the said dispute.
19.
DOMAIN NAME means address of a computer, organization, or entity on a TCP/IP
network such as Internet.
UL(VNO) agreement updated up to 31.03.2024
143
UL(VNO) agreement updated up to 31.03.2024 143
20.
DOT means Department of Telecommunications, Government of India who is also
the Licensor. DoT & Licensor, wherever used in the License agreement are inter-
changeable.
21.
EFFECTIVE DATE OF LICENSE means the date which is so specified in this
License agreement.
22.
EFFECTIVE DATE OF SPECTRUM means the date which is so specified in the
terms and conditions of the auction/allotment of spectrum.
23.
EMERGENCY means an emergency of any kind, including any circumstances
resulting from major accidents, natural/man-made disasters and incidents involving toxic
or radio-active materials or as declared by Govt. from time to time.
24.
EMERGENCY SERVICES means the relevant public, police, fire, ambulance,
coast guard or any other services so declared by the Licensor.
25.
ENGINEERING: The technical application of the dimensioning rules and results
thereof in order to provide network resources to meet specified Grade of Service (GOS).
26.
ENTRY FEE:
The prescribed non-refundable amount of fee to be paid
before signing of LICENSE AGREEMENT to provide authorized Services in a Service
Area.
27. FUNDAMENTAL PLAN includes Numbering Plan, Traffic Routing and Switching
Plan, Signalling Plan and Transmission Plan issued by Department of Telecom as
amended from time to time.
28.
GATEWAY MOBILE SWITCHING CENTRE means a Mobile Switching Centre
with an additional functionality that allow the mobile network to interface with other
network.
29.
Global Mobile Personal Communications by Satellite (GMPCS) system means
"any satellite system (i.e. fixed or mobile, broad-band or narrow-band, global or regional,
geo-stationary or non geo-stationery, existing or planned) providing telecommunication
services directly to end users from a single or constellation of satellites".
30.
HOME NETWORK means the network established by the Licensee from which its
subscriber normally receive the service.
31.
ICC means INSAT Coordination Committee.
32.
ILD POINT OF PRESENCE (POP) means a technical arrangement made by
International Long Distance Service Operator under which it can accept outgoing calls
from and deliver terminating calls to the area required to be served from such POP. It is
expected that switch capacity and bandwidth of the interconnecting link would be
dimensioned by International Long Distance Operator based upon its projections of the
traffic to be carried by POP”.
33.
INFRASTRUCTURE PROVIDER(S) mean a company registered with DoT as
IP-I providing inactive elements of the telecom network including dark fibres, right of
way, duct space, towers etc. as well as IP-II LICENSEEs who provide end-to-end
bandwidth to telecom service providers.
34.
INSAT SATELLITE SYSTEM means Indian satellite system in which the
satellites are either built or procured by the Department of Space (DOS), Government of
UL(VNO) agreement updated up to 31.03.2024 144
India. DOS may lease transponders from other satellite systems to augment the capacity
of the INSAT satellite system.
35.
INSTALLED CAPACITY means the total number of lines for which switching
equipment is available in the exchange for connection of subscribers.
36.
INTERCONNECTION is as defined by the TRAI in its relevant regulations.
37.
INTERNATIONAL LONG DISTANCE NETWORK means a network of
transmission and switching elements connected in a predetermined fashion to provide
international bandwidth/switched bearer interconnection from/to POP of the ILD Service
Provider to/from the International destination.
38.
INTERNATIONAL LONG DISTANCESERVICE means provision of international
bandwidth/switched bearer interconnection over the International Long Distance Network
of the Licensee. Scope of Service provided under the ILD Service Authorization shall be
governed by the terms and conditions as provided in Chapter XI.
39.
INTERNATIONAL PRIVATE LEASED CIRCUIT: International Private Leased
Circuit is defined as point to point non-switched physical connections/transmission
bandwidth including virtual private network (VPN) using circuit or packet switched
technology between user in India and user abroad.
40.
INTERNET LEASED LINE (ILL) means any dedicated link (on wired or wireless
media) from a port on Internet node to subscriber premises having un-contended and
symmetrical full duplex capacity.
41.
INTER – CIRCLE TRAFFIC means the Long Distance traffic originating in one
Telecom Circle/Metro Area and terminating in another Telecom Circle/Metro Area.
42.
INTRA- CIRCLE TRAFFIC means the traffic originating and terminating within
boundaries of the same Telecom Circle/Metro Area.
43.
IPTV (Internet Protocol Television) service (or technology) is a convergence
service (or technology) of the telecommunications and broadcasting through QoS
controlled Broadband Convergence IP Network including wire and wireless for the
managed, controlled and secured delivery of a considerable number of multimedia
contents such as Video, Audio, data and applications processed by platform to a
customer via Television, PDA, Cellular, and Mobile TV terminal with STB module or
similar device.
44.
INTERNET: Internet is a global information system that:
(i) is logically linked together by a globally unique address, based on Internet Protocol(IP)
or its subsequent enhancements/upgradations;
(ii) is able to support communications using the Transmission Control Protocol/Internet
Protocol (TCP/IP) suite or its subsequent enhancements/upgradations, and all other IP
compatible protocols;
5245A. Definition of Internet Access Service UL
Internet Access Service is a service to access the Internet that is:
i.
Generally available to the public; and
52 Amended vide letter no 20-271/2010 AS-I (Vol-III) dated 26.09.2018
UL(VNO) agreement updated up to 31.03.2024
145
UL(VNO) agreement updated up to 31.03.2024 145
ii.
Designed to transmit data to and receive data from all or substantially all endpoints
on the Internet.
Explanation: Any service that offers capabilities that are incidental to or provide the
functional equivalent of Internet Access Service, shall also be included within the scope
of this definition.
45.
Internet of Things (IoT): IoT refers to the inter-connection of many devices and
objects utilising internet protocols that can occur with or without the active involvement
of individuals using the devices. The IoT is the aggregation of many M2M connections.
M2M connections form part of the IoT, along with big data analytics, cloud computing,
and sensors and actuators that in combination can run autonomous machines and
intelligent systems.
46.
IP ADDRESSES: Operation of Internet services requires IP address which can
have up to 128 bit binary address or higher in future. This address is required for
connection on Internet. Typically, it is required for the ports of the routers, for the user
end equipments/devices etc.
47.
INTERNET TELEPHONY means transfer of message(s) including voice signal(s)
through public internet.
48.
LEASED CIRCUIT: Leased circuit is defined as point to point non-switched
physical connections/transmission bandwidth including virtual private network (VPN)
using circuit or packet switched technology.
49.
LENDER: means the parties referred to in the Schedule of the Tripartite
Agreement and includes any Syndicate member or participant lender in any
syndicate/participation financing.
50.
LICENSE: License means a License granted or having effect as if granted under
section 4 of the Indian Telegraph Act 1885 and Indian Wireless Act 1933.
51.
LICENSE FEE means a fee payable by Licensee at prescribed intervals and rates
for the period of the License.
52.
Licensed Service Area (LSA) Field Units: Field offices of Department of
Telecommunications.
53.
Licensee: A registered Indian Company that has been awarded License to
provide service(s) authorized under the License, within the geographical boundaries of
the specified Service Area.
54.
LOCAL CALLS mean calls originating and terminating within the same local area,
which are charged at local call rates. Remote Subscribers’ Unit (RSU)/ Remote Line Unit
(RLU) Concentrators/Media Gateway having switching functions will be treated as an
exchange for the purposes of this definition. For Basic Service, the SDCA is local area
and for mobile network, the Service area is local area.
55.
LONG DISTANCE NETWORK is a network of transmission and switching
elements connected in a predetermined fashion to provide bandwidth /switched bearer
interconnection between different SDCAs/SDCCs. Physically the network elements may
be co-located or be a part of bigger elements.
56.
LONG DISTANCE CALL is defined as a call terminating in a local area other than
that in which it is originated.
UL(VNO) agreement updated up to 31.03.2024 146
57.
LONG DISTANCE CHARGING AREA (LDCA) means one of the several areas
into which the country is divided and declared as such for the purpose of charging for
trunk calls which generally is co-terminus with Secondary Switching Area.
58.
LONG DISTANCE CHARGING CENTRE (LDCC): A particular Trunk
Exchange/Location in a Long Distance Charging Area declared as such for the purpose
of charging long distance calls. LDCCs are generally co-terminus with Head Quarters of
SSAs.
59.
LPWAN (Low Power Wide Area Networks): LPWAN is type of WAN which
provide wireless connectivity to low-power devices over large distance that is suited for
M2M communication.
60.
MESSAGE means anything falling within sub-section (3) of section 3 of the Indian
Telegraph Act 1885.
61.
MOBILE NUMBER PORTABILITY (MNP) means the facility which allows
subscribers to retain their existing telephone number when they switch from one access
service provider to another access service provider..
62.
MOBILE STATION means a station in the mobile service intended to be used
while in motion or during halts at unspecified points. Mobile station or mobile handset or
user terminal wherever used in the License agreement, are inter-changeable.
63.
MOBILE SWITCHING CENTRE (MSC) means the switching equipment installed
as a part of the network which performs all switching functions of calls for providing
various services under the scope of this License.
64.
MEDIA GATEWAY CONTROLLER (MGC) ALSO KNOWN AS SOFTSWITCH,
CALL SERVER (CS), CALL AGENT, CALL CONTROLLER:
The Media Gateway Controller is located in the service provider’s network and
handles call control and authorize functions, typically maintaining call state for every call
in the network. A MGC interacts with Application Servers to provide services that are not
directly hosted on MGC in Packet Based networks .It handles the registration and
management of resources at the media gateway. A media gateway controller exchanges
messages with central office switches via a signaling gateway. It processes the signaling
for all types of packet protocols. It controls connection services for a media gateway
and/or native IP endpoints, selects processes that can be applied to a call, provides
routing for a call within the network based on signaling and customer database
information, transfers control of the call to another network element, and interfaces to
and support management functions such as provisioning, fault, billing, etc.
65.
MEDIA GATEWAY (MG): A protocol converter that interfaces a traditional public
switched telephone network (PSTN), or device running PSTN protocols, with a device
running the Internet protocol (IP) suite. As the Media Gateway connects different types
of networks, one of its main functions is to convert between the different transmission
and coding techniques. Media streaming functions such as echo cancellation, DTMF,
and tone sender are also located in the Media Gateways.
66.
MTNL means Mahanagar Telephone Nigam Limited.
67.
“Machine to Machine (M2M) Communication” refers to a communication
between two or more entities (object/devices/things) based on existing & evolving
communication technologies that do not necessarily need any direct human intervention.
UL(VNO) agreement updated up to 31.03.2024
147
UL(VNO) agreement updated up to 31.03.2024 147
68.
“M2M Services” means the services offered through a connected network of
objects/devices, with identifiers, in which Machine to Machine (M2M) communication is
possible with predefined back end platform(s) either directly or through some gateway.
Explanation: M2M services involve communication of end device/ object with predefined
back end platform(s) either directly or through some gateway. The M2M end devices/
objects and the platform(s) collecting and analyzing information from these devices/
objects are controlled by same organization.
70.
“M2M Service Provider” (M2MSP) is as an entity that collects and analyzes data
from M2M devices and platforms. However, any entity which intends to provide M2M
services for its own use (captive use) and not for commercial purpose, shall not be
covered under this definition.
71.
NATIONAL LONG DISTANCE NETWORK is a network of transmission and
switching elements connected in a predetermined fashion to provide bandwidth /switched
bearer interconnection between SDCAs/SDCCs of two Telecom Circles/Metro Areas.
Physically the network elements may be co-located or be a part of bigger elements.
72.
NATIONAL LONG DISTANCE (NLD) SERVICE refers to the provision of
bandwidth / carriage of switched bearer telecommunication service over the national long
distance network of the Licensee between SDCAs/SDCCs of two Telecom Circles/Metro
Areas. Scope of Service provided under the NLD Service Authorization shall be governed
by the terms and conditions as provided in Chapter X.
73.
NATIONAL LONG DISTANCE SERVICE PROVIDER is the telecom service
provider providing the required digital capacity to carry long distance telecommunication
service within the scope of License for National Long Distance Service, which may
include various types of tele-services defined by the ITU, such as voice, data, fax, text,
video and multi-media etc.
74.
Net worth shall be as defined in the Companies Act 2013 and as amended from
time to time.
75.
Next Generation Network (NGN):As per ITU-T recommendation Y.2001, A Next
Generation Network (NGN) is a packet-based network able to provide services including
Telecommunication Services and able to make use of multiple broadband, QoS-enabled
transport technologies and in which service-related functions are independent from
underlying transport-related technologies. It offers unrestricted access by users to
different service providers. It supports generalized mobility which will allow consistent
and ubiquitous provision of services to users.
76.
NOCC means Network Operations Control Centre of the Department of Telecom,
Government of India.
77.
NSO means Network Service Operator. NSO own the telecom core network,
which is also known as backbone. Core network is a part of network that connects
different parts of Access Network. The core network also provides gateway to other
networks.
78.
OTHER SERVICE PROVIDER (OSP) means Indian company registered with DoT
to provide application services like tele-banking, tele-medicine, tele-education, tele-
trading, e-commerce, Call center, network operation centre and other IT enabled services
by using telecom facilities provided by various Telecom Licensees.
UL(VNO) agreement updated up to 31.03.2024 148
79.
OR/QR (OPERATIONAL /QUALITY REQUIREMENT) SPECIFICATIONS means
technical and quality requirements contained in the OR/QR Specifications of Telecom
Engineering Centre, Department of Telecommunications unless otherwise specified.
5379-A.
"Person” shall include an individual, any company or association or body
of individuals, whether incorporated or not, by whatsoever name called or referred to;
80.
POINT OF INTERCONNECTION (POI) means authorized interconnection point
for ingress and egress of traffic among the interconnecting applicable systems of service
providers in accordance with TRAI regulations/orders.
81.
POINT OF PRESENCE (POP) means applicable system of appropriate capacity
set up by the Service Provider to provide, on demand, service of prescribed quality and
grade of service in a non-discriminatory manner.
5481-A.
“Public entity” means (a) the Central Government, (b) State Governments,
(c) local authority, (d) any authority, body, company or institution incorporated or
established by the Central Government or the State Government, or under any statute,
or (e) any non-government entity vested with the ownership, control or management of
any public facility or class of public facilities, as notified by the Central Government.
82.
PUBLIC LAND MOBILE NETWORK (PLMN) means a specified switched public
land based telephone network providing mobile telecom services.
83.
PUBLIC SWITCHED TELEPHONE NETWORK (PSTN) means a specified
switched public telephone network providing fixed and/or limited mobility two-way
switched telecommunications service to the general public.
84.
PUBLIC UTILITY SERVICE means a service, as declared by the Licensor from
time to time, for use of general public by access through telecommunication links.
85.
QUALITY OF SERVICE: Quality of Service is evaluated on the basis of
observable measure on the grade of service, Calls lost due to wrong processing, the bit
error rate or the response time and also includes acceptable grade of number of faults
per unit population of the subscriber served, the mean time to restore (MTTR), faults
carried over beyond the MTTR and the satisfactory disposal thereof.
86.
RADIO TRANSMITTER means the Radio Transmitter and Receiver at base
stations.
87.
ROAMING means the facility to a customer to avail services subscribed in its
home network, while travelling outside the geographical coverage area of the home
network, by means of using a visited network. For Access Services, the scope of roaming
facility shall be as provided in the Access Service Authorization in Chapter VIII.
88.
SATCOM means Satellite Telecommunication.
89.
SECONDARY SWITCHING AREA means an area covered by a group of Short
Distance Charging Areas (SDCAs) as per Annexure – VII.
90.
SERVICE means collection, carriage, transmission and delivery of messages over
Licensee’s network in Service Area as per authorization under this License.
53 Amended vide letter no 20-271/2023 AS-I dated 27.07.2023
54 Amended vide letter no 20-271/2023 AS-I dated 27.07.2023
UL(VNO) agreement updated up to 31.03.2024
149
UL(VNO) agreement updated up to 31.03.2024 149
91.
SERVICE AREA means the specified geographical area for which service
authorization has been granted under this license. For NLD, ILD, VSAT, INSAT MSS-R,
GMPCS, IPLC, M2M and ISP Category “A” services, the service area is geographical
area of the country. For Access Service, PMRTS,M2M Category “B” and ISP Category
“B” services, the service area is geographical area of a Telecom Circle/Metro as
mentioned in Annexure-V. For ISP Category “C” services and M2M Category “C”, the
service area is geographical area of an SSA as mentioned in Annexure-VII.
92.
SERVICE PROVIDERS means Telecom service provider licensed under Section
4 of the Indian Telegraph Act 1885 for provision of service
93. SHORT DISTANCE CHARGING AREA (SDCA) means one of the several areas
into which a Long Distance Charging Area is divided and declared as such for the
purpose of charging for trunk calls and within which the local call charges and local
numbering scheme is applicable. SDCAs, with a few exceptions, coincide with revenue
tehsil / taluk.
94.
SHORT DISTANCE CHARGING CENTRE (SDCC) means a particular exchange
in Short Distance Charging Area declared as such for the purpose of charging trunk calls.
Head quarters of SDCAs are generally SDCCs.
95.
SIGNALING GATEWAY (SG): The SG provides the authorize interface between
the VoIP network and the PSTN authorize network. It terminates SS7 links and provides
Message Transport Part (MTP) Level 1 and Level 2 functionality. Each SG communicates
with its associated CS to support the end-to-end authorize for calls.
96.
SIM CARD Subscriber Identity Module (SIM) Card, which is fitted into a mobile
station, after which the mobile station can be activated to make or receive voice/non-
voice messages.
97.
SPECIAL AUDITOR means Auditors listed in the panel of Auditors having same
powers as of the company’s AUDITOR as envisaged in the Companies Act, 2013.
98.
SUBSCRIBER means any person or legal entity, which subscribes to / avails of
the service from the Licensee. In this License, the words ‘Customer’ and ‘Subscriber’
have been used interchangeably.
99.
SUBSCRIBER TERMINAL (UT) (FIXED AND MOBILE TERMINAL OR HAND
SET OR MOBILE STATION) means the equipment used by the subscribers to avail the
service provided by the Licensee.
100. TARIFF means rates and related conditions at which telecommunication services
within India and outside India may be provided including rates and related conditions at
which messages shall be transmitted to any country outside India, deposits, installation
fees, rentals, free calls, usage charges and any other related fees or service charge. The
term tariff will have the same meaning as may be defined in the Telecommunication Tariff
Orders to be issued by the TRAI from time to time.
101. TDSAT means Telecom Disputes Settlement and Appellate Tribunal.
102. TEC means Telecom Engineering Centre, Department of Telecommunications.
103. TELEPHONE MEANS an item of telecommunication apparatus capable when
connected to the Applicable System, of transmitting and receiving uninterrupted
simultaneous two way speech conveyed, or to be conveyed, as the case may be, by
means of that System.
UL(VNO) agreement updated up to 31.03.2024 150
104. TRAI means Telecom Regulatory Authority of India constituted under the TRAI
Act, 1997 as amended from time to time.
105. TRIPARTITE AGREEMENT means an agreement signed amongst the Licensee,
Licensor and Lender in the prescribed format with a view to help and facilitate the
financing of the Project to be set up by the Licensee, the terms and conditions of which,
inter-alia, provide for transfer/assignment of License to a third party in the event of default
by the Licensee, as defined therein.
106. Trunk Media Gateway (TMG): The TMG supports a trunk side interface to the
PSTN and/or IP routed flows in the packet network. It supports functions such as
packetisation, echo control etc.
107. UL(AS) means a Unified License (Access Service).
108. Universal Service Obligation Fund (USOF) means the fund established under
Sub-section (1) of Section 9A of the Indian Telegraph Act, 1885.
109. Universal Service Obligation (USO) means obligation to provide access to
telegraph services to people in rural and remote areas as prescribed by Govt. from time
to time.
110. VNO means Virtual Network Operators who provide service delivery. In other
words, service delivery operators are called VNOs.
111. VSAT means Very Small Aperture Terminal.
112. WPC means Wireless Planning and Co-ordination Wing of the Ministry of
Communications, Department of Telecommunications, Government of India.
113. YEAR for the purpose of the License Fee shall be the financial year ending 31st
March and the four quarters shall respectively end on 30th June, 30th September, 31st
December and 31st March.
UL(VNO) agreement updated up to 31.03.2024
151
UL(VNO) agreement updated up to 31.03.2024 151
55Annexure-II
Details of Minimum Equity, Minimum Networth and Entry Fee for various service
authorizations
Sl.
No.
Service
Authorization(s) (VNO)
Minimum
Equity
(Rs. Cr.)
Minimum
Networth
(Rs. Cr.)
Entry Fee
(Rs. Cr.)
FBGs
(Rs.
Cr.)
Application
processing
Fee
(Rs.
Cr.)
1
UL(VNO-All services)
10.0
10.0
7.5
4.400
0.010
2
Access
Service
(Telecom Circle / Metro
Area)
1.0
1.0
0.5 (0.25
for NE &
J&K)
0.200
0.001
3
NLD (National Area)
1.000
1.000
1.250
0.500
0.001
ILD (National Area)
1.000
1.000
1.250
0.500
0.001
5
VSAT (National Area)
Nil
Nil
0.150
0.030
0.001
6
PMRTS
(Telecom
circle/Metro)
Nil
Nil
0.0025
0.001
0.001
7
GMPCS (National Area) 1.000
1.000
0.500
0.100
0.001
8
ISP "A" (National Area)
Nil
Nil
0.150
0.010
0.001
9
ISP
"B"
(Telecom
circle/Metro Area)
Nil
Nil
0.010
0.001
0.001
10 ISP "C" (SSA)
Nil
Nil
0.001
0.0001 0.001
11
Resale of IPLC
1.250
1.250
0.500
0.100
0.001
12. Access Service Cat B
-
0.050
0.0165
0.002
0.001
13
Machine to Machine ‘A’
(National Area)
Not
prescribed
Not
prescribed
0.150
0.010
0.001
14
Machine to Machine ‘B’
(Telecom circle/ Metro
Area)
Not
prescribed
Not
prescribed
0.010
0.001
0.001
15
Machine to Machine ‘C’
(SSA)
Not
prescribed
Not
prescribed
0.001
0.0001 0.001
55 Amended vide DoT letter no 20-405/2013 AS-I (Vol.-V) (Pt.2) dated 18th April 2023.
UL(VNO) agreement updated up to 31.03.2024 152
ANNEXURE-III
PROFORMA FOR FINANCIAL BANK GUARANTEE
To
The President of India
In consideration of the President of India (hereinafter referred to as ‘the Authority’) having
agreed to grant a Unified License (VNO) with Service authorization for
…………….Service under Chapter(s)………………….. for …………………..Service Area
of
the
said
Unified
License
(VNO)
to
M/s
_______________
of
_____________________________________ (hereinafter called ‘the Licensee’) to
establish, maintain and operate the authorized service(s) (hereinafter called ‘the Service’)
in the Service Area as per Letter of Intent/ Unified License (VNO) No.
____________________ dated __________ (hereinafter called ‘the said License’) on the
terms and conditions contained in the said Unified License (VNO), which inter-alia
provides for production of a Bank Guarantee to the extent of Rs.__________________
(in words _________________________) under the said License by way of security for
payment of the said License fee as well as such other fees or charges required to be paid
by the Licensee under the License. We _______________ (indicate the name and
address and other particulars of the Bank) (hereinafter referred to as ‘the Bank’) at the
request of the Licensee hereby irrevocably and unconditionally guarantee to the Authority
that the Licensee shall pay all the dues, including but not limited to, the License fee etc.
to the Authority.
2.
We, the Bank, hereby undertake to pay the Authority an amount not exceeding
Rs………(Rupees…………only) against any loss or damage caused to or suffered or
would be caused to or suffered by the Authority by reason of any failure of the Licensee
to extend the validity of the guarantee or give a fresh guarantee in lieu of existing one in
terms of the License Agreement, pay all the above mentioned fees, dues and charges or
any part thereof within the periods stipulated in the License.
3.
We, the Bank, hereby further undertake to pay as primary obligor and not merely
as surety to pay such sum not exceeding Rs._________________________ (Rupees
_____________________ Only) to the Authority immediately on demand and without
demur stating that the amount claimed is due by way of failure of the Licensee to pay any
fees or charges or any part thereof in terms of the said License.
4.
WE, THE BANK, DO HEREBY DECLARE AND AGREE that the decision of the
Authority as to whether Licensee has failed to pay the said License fees or any other fees
or charge or any part thereof payable under the said License and as to the amount paid
to the Authority by the Bank hereunder shall be final and binding on us.
5.
WE, THE BANK, DO HEREBY DECLARE AND AGREE that the
(a)
Guarantee herein contained shall remain in full force and effect for a period of Two
Years from the date hereof and that it shall continue to be enforceable till all the dues of
the Authority and by virtue of the said License have been fully paid and its claims satisfied
or discharged or till Authority satisfies that the terms and conditions of the said License
have been fully and properly carried out by the said Licensee and accordingly discharged
this guarantee.
(b)
The Authority shall have the fullest liberty without our consent and without affecting
in any manner our obligations hereunder to vary any of the terms and conditions of the
said License or to extend time of performance of any obligations by the said Licensee
from time to time or to postpone for any time or from time to time any of the powers
UL(VNO) agreement updated up to 31.03.2024
153
UL(VNO) agreement updated up to 31.03.2024 153
exercisable by the Authority against the said Licensee and to forbear or to enforce any
of the terms and conditions relating to the said License and we shall not be relieved from
our liability by reason of any variation or extension being granted to the said Licensee or
forbearance act or omission on the part of the Authority or any indulgence by the Authority
to the said Licensee or to give such matter or thing whatsoever which under the law
relating to sureties would but for this provision, have effect of so relieving us.
(c)
Any claim which we have against the Licensee shall be subject and subordinate
to the prior payment and performance in full of all the obligations of us hereunder and we
will not without prior written consent of the Authority exercise any legal right or remedy of
any kind in respect of any such payment or performance so long as the obligations of us
hereunder remains owing and outstanding.
(d)
This Guarantee shall be irrevocable and the obligations of us herein shall not be
conditional of any prior notice by us or by the Licensee.
6.
We, the BANK, undertake not to revoke this Guarantee during its currency except
with the previous consent of the Authority in writing.
7.
We, the Bank agree that this guarantee may be invoked on a number of occasions
for part amounts, with the balance standing in favour of the Authority, but so that the total
amount paid/payable hereunder shall not exceed Rs………………………………..
In case where the Bank Guarantee issuing branch is not located at the station/city
as required by the Licensor, any notice for invocation, sent by Licensor through Fax to
the branch of the Bank issuing this Guarantee, with an ink signed copy to a local branch
in the service area of the Licensee, namely …………. (to be designated by the bank at
station/city prescribed by the Licensor) within the validity period shall be deemed to be a
valid notice on the Bank for invocation of this Bank Guarantee.
8. Notwithstanding anything contained above, our liability, under the Guarantee shall be
restricted to Rs…… and our Guarantee shall remain in force until….year from the date
hereof. Unless a demand or claim under this Guarantee is made on us in writing within
this date i.e. …. all your rights under the Guarantee shall be forfeited and we shall be
released and discharged from all liabilities thereunder.
Dated____________ day ___________ for ________________ (Name of the Bank)
Witness:
1…………………………..
2…………………………..
……………………………
……..……………………
……………………………
……………………………
……………………………
……………………………
……………………………
……………………………
UL(VNO) agreement updated up to 31.03.2024 154
ANNEXURE-IV
SERVICE AREA (TELECOM CIRCLES/ METROS) AND THE AREASCOVERED BY
THEM FOR THE PURPOSE OF THIS LICENSE
Sl.
No.
Name of
Service Area
Areas covered
01.
West Bengal
Service Area
Entire area falling within the Union Territory of Andaman & Nicobar
Islands and area falling within the State of West Bengal and the
State of Sikkim excluding the areas covered by Kolkata Metro
Service Area.
02.
Andhra
Pradesh
Service Area
Entire area falling within the State of Andhra Pradesh.
03.
Assam
Service Area
Entire area falling within the State of Assam.
04.
Bihar Service
Area
Entire area falling within the re-organised State of Bihar and newly
created State of Jharkhand pursuant to the Bihar Reorganisation
Act, 2000 (No.30 of 2000) dated 25th August, 2000.
05.
Gujarat
Service Area
Entire area falling within the State of Gujarat and Union Territory of
Daman and Diu, Silvassa (Dadra & Nagar Haveli).
06.
Haryana
Service Area
Entire area falling within the State of Haryana except Panchkula
town and the local areas served by Faridabad and Gurgaon
Telephone exchanges.
07.
Himachal
Pradesh
Service Area
Entire area falling within the State of Himachal Pradesh
08.
Jammu
&
Kashmir
Service Area
Entire area falling within the State of Jammu & Kashmir including
the autonomous council of Ladakh.
09.
Karnataka
Service Area
Entire area falling within the State of Karnataka
10.
Kerala
Service Area
Entire area falling within the State of Kerala and Union Territory of
Lakshadeep and Minicoy.
11.
Madhya
Pradesh
Service Area
Entire area falling within the re-organised State of Madhya Pradesh
as well as the newly created State of Chattisgarh pursuant to the
Madhya Pradesh Reorganisation Act, 2000 (No:28 of 2000) dated
25th August, 2000.
12.
Maharashtra
Service Area
Entire area falling within the State of Maharashtra and Union
Territory of Goa, excluding areas covered by Mumbai Metro
Service Area.
UL(VNO) agreement updated up to 31.03.2024
155
UL(VNO) agreement updated up to 31.03.2024 155
13.
North
East
Service Area
Entire area falling within the States of Arunachal Pradesh,
Meghalaya, Mizoram, Nagaland, Manipur and Tripura.
14.
Orissa
Service Area
Entire area falling within the State of Orissa.
15.
Punjab
Service Area
Entire area falling within the State of Punjab and Union territory of
Chandigarh and Panchkula town of Haryana.
16.
Rajasthan
Service Area
Entire area falling within the State of Rajasthan.
17*
.
Tamilnadu
Service Area
(including
Chennai
Service Area)
Entire area falling within the State of Tamilnadu and Union Territory
of Pondichery.
17
A*
Tamilnadu
Service Area
(excluding
Chennai
Service Area)
Entire area falling within the State of Tamilnadu and Union Territory
of Pondichery excluding Local Areas served by Chennai
Telephones, Maraimalai Nagar Export Promotion Zone (MPEZ),
Minzur and Mahabalipuram Exchanges
17
B*
Chennai
Service Area
Local Areas served by Chennai Telephones, Maraimalai Nagar
Export Promotion Zone (MPEZ), Minzur and Mahabalipuram
Exchanges
18.
Uttar Pradesh
(West)
Service Area
Entire area covered by Western Uttar Pradesh with the following as
its boundary districts towards Eastern Uttar Pradesh :Pilibhit,
Bareilly, Badaun, Kasganj (Kanshiram Nagar), Etah, Mainpuri,
Etawah and Auraiya. It will exclude the local telephone area of
Ghaziabad and Noida. However, it will also include the newly
created State of Uttaranchal pursuant to the Uttar Pradesh Re-
organisation Act, 2000 (No.29 of 2000) dated 25th August, 2000.
19.
Uttar Pradesh
(East)
Service Area
Entire area covered by Eastern Uttar Pradesh with the following as
its
boundary
districts
towards
Western
Uttar
Pradesh
:Shahjahanpur, Kannauj, Farrukhabad, Lakhimpur, Kanpur Rural
and Jalaun(Orai).
20.
Delhi Service
Area
Local Areas served by Delhi, Ghaziabad, Faridabad, Noida, and
Gurgaon Telephone Exchanges
21.
Kolkata
Service Area
Local Areas served by Calcutta Telephones.
22.
Mumbai
Service Area
Local Areas served by Mumbai, New Mumbai and Kalyan
Telephone Exchanges
NOTE:
1.
Yenum, an area of Union Territory of Pondicherry is served under Andhra Pradesh
Telecom Circle in East Godavari LDCA.
UL(VNO) agreement updated up to 31.03.2024 156
2.
The definition of Local areas of exchanges will be as applicable to the existing
cellular operators, i.e. at the time of grant of cellular Licenses in Metro cities.
3.
The definition of local areas with regard to the above service area as applicable to
this License is as per definition applicable to Cellular Mobile Service Licenses as
in the year 1994 & 1995, when those Licenses were granted to them. This is in
accordance with respective Gazette Notification for such local areas wherever
issued and as per the statutory definition under Rule 2 (w) Indian Telegraph Rules,
1951, as it stood during the year 1994/1995 where no specific Gazette Notification
has been issued.
*
Erstwhile Chennai Service Area & Tamilnadu (excluding Chennai) Service Area
as defined in UAS License, have been merged to make a single Service area
namely Tamilnadu Service Area. For Unified License (VNO), there will be
Tamilnadu Service Area as defined at Sl No. 17 in the above List of Service Areas.
UL(VNO) agreement updated up to 31.03.2024
157
UL(VNO) agreement updated up to 31.03.2024 157
ANNEXURE-V
Details of Maximum amount of Penalty under each Service Authorization
Sl.No.
Service Authorization
Maximum Amount of Penalty per violation
for each occasion in Service Area
1
Access
50 Crore
2
NLD
50 Crore
3
ILD
50 Crore
4
Resale of IPLC
1 Crore
5
ISP Cat A
1 Crore
6
ISP Cat B
20 Lakh
7
ISP Cat C
10 Lakh
8
GMPCS
50 Crore
9
PMRTS
10 Lakh
10
VSAT CUG
1 Crore
11
Access Cat B
10 Lakh
12
M2M Cat A
1 Crore
13
M2M Cat B
20 Lakh
14
M2M Cat C
10 Lakh
UL(VNO) agreement updated up to 31.03.2024 158
ANNEXURE VI
LIST OF SECONDARY SWITCHING AREA (SSA)
S. No.
Telecom Circle/Metro Area
Secondary Switching Area
1
ANDAMAN & NICOBAR
ANDAMAN & NICOBAR
2
ANDHRA PRADESH
ADILABAD
3
ANDHRA PRADESH
ANANTPUR (GUNTKAL)
4
ANDHRA PRADESH
CHITTOOR
5
ANDHRA PRADESH
CUDDAPAH
6
ANDHRA PRADESH
ELURU
7
ANDHRA PRADESH
GUNTUR
8
ANDHRA PRADESH
HYDERABAD
9
ANDHRA PRADESH
KARIMNAGAR
10
ANDHRA PRADESH
KHAMAM
11
ANDHRA PRADESH
KURNOOL
12
ANDHRA PRADESH
MAHABUBNAGAR
13
ANDHRA PRADESH
NALGONDA
14
ANDHRA PRADESH
NELLORE
15
ANDHRA PRADESH
NIZAMABAD
16
ANDHRA PRADESH
ONGOLE
17
ANDHRA PRADESH
RAJAHMUNDRI
18
ANDHRA PRADESH
SANGAREDDY
19
ANDHRA PRADESH
SRIKAKULAM
20
ANDHRA PRADESH
VISAKHAPATNAM
21
ANDHRA PRADESH
VIZAYANAGARAM
22
ANDHRA PRADESH
WARANGAL
23
ANDHRA PRADESH
VIJAYAWADA
24
ASSAM
GUWAHATI
25
ASSAM
SILCHAR
26
ASSAM
TEZPUR
27
ASSAM
TINSUKHIA (DIBRUGARH)
UL(VNO) agreement updated up to 31.03.2024
159
UL(VNO) agreement updated up to 31.03.2024 159
28
ASSAM
BONGAIGAON (KOKRAJHAR)
29
ASSAM
JORHAT
30
ASSAM
NAGAON
31
BIHAR
CHAPRA
32
BIHAR
DALTONGANJ
33
BIHAR
DARBHANGA
34
BIHAR
DEOGHAR (DUMKA)
35
BIHAR
GAYA
36
BIHAR
HAZARIBAGH
37
BIHAR
JAMSHEDPUR
38
BIHAR
KATIHAR
39
BIHAR
MOTIHARI
40
BIHAR
MUZAFFARPUR
41
BIHAR
PATNA
42
BIHAR
RANCHI
43
BIHAR
SAHARSA
44
BIHAR
ARRAH
45
BIHAR
BHAGALPUR
46
BIHAR
DHANBAD
47
BIHAR
MONGHYAR
48
BIHAR
SASARAM
49
GUJARAT
AHMEDABAD
50
GUJARAT
BHARUCH
51
GUJARAT
BHUJ
52
GUJARAT
GODHRA
53
GUJARAT
JAMNAGAR
54
GUJARAT
PALANPUR
55
GUJARAT
SURAT
56
GUJARAT
VADODARA
57
GUJARAT
AMRELI
58
GUJARAT
BHAVNAGAR
UL(VNO) agreement updated up to 31.03.2024 160
59
GUJARAT
HIMATNAGAR
60
GUJARAT
JUNAGARH
61
GUJARAT
MEHSANA
62
GUJARAT
NADIAD
63
GUJARAT
RAJKOT
64
GUJARAT
SURENDRANAGAR
65
GUJARAT
VALSAD
66
HARYANA
AMBALA
67
HARYANA
GURGAON
68
HARYANA
HISSAR
69
HARYANA
NARNAUL
70
HARYANA
ROHTAK
71
HARYANA
JIND
72
HARYANA
KARNAL
73
HARYANA
SONIPAT
74
HIMACHAL PRADESH
KANGRA (DHARMSALA)
75
HIMACHAL PRADESH
KULLU
76
HIMACHAL PRADESH
SHIMLA
77
HIMACHAL PRADESH
HAMIRPUR
78
HIMACHAL PRADESH
MANDI
79
HIMACHAL PRADESH
SOLAN
80
JAMMU & KASHMIR
SRINAGAR
81
JAMMU & KASHMIR
JAMMU
82
JAMMU & KASHMIR
LEH
83
JAMMU & KASHMIR
RAJOURI
84
JAMMU & KASHMIR
UDHAMPUR
85
KERALA
CALICUT (KOZHIKODE)
86
KERALA
CANNANORE
87
KERALA
ERNAKULAM
88
KERALA
KAVARATHY
89
KERALA
PALGHAT
UL(VNO) agreement updated up to 31.03.2024
161
UL(VNO) agreement updated up to 31.03.2024 161
90
KERALA
QUILON
91
KERALA
TIRUVALLA
92
KERALA
TRICHUR
93
KERALA
ALLEPPY
94
KERALA
KOTTAYAM
95
KERALA
THIRUVANANTHAPURAM
96
KARNATAKA
BELGAUM
97
KARNATAKA
BELLARY
98
KARNATAKA
BIDAR
99
KARNATAKA
BIJAPUR
100
KARNATAKA
DAKSHIN KANADA (MANGALORE)
101
KARNATAKA
GULBARGA
102
KARNATAKA
HUBLI
103
KARNATAKA
RAICHUR
104
KARNATAKA
SHIMOGA
105
KARNATAKA
TUMKUR
106
KARNATAKA
UTTAR KANADA (KARWAR)
107
KARNATAKA
BANGALORE
108
KARNATAKA
CHIKMAGALUR
109
KARNATAKA
DEVANGERE
110
KARNATAKA
HASSAN
111
KARNATAKA
KODAGU (MADIKERI)
112
KARNATAKA
KOLAR
113
KARNATAKA
MANDYA
114
KARNATAKA
MYSORE
115
MAHARASHTRA
AHMEDNAGAR
116
MAHARASHTRA
AMRAVATI
117
MAHARASHTRA
AURANGABAD
118
MAHARASHTRA
BHANDARA
119
MAHARASHTRA
BHIR
120
MAHARASHTRA
BULDHANA
UL(VNO) agreement updated up to 31.03.2024 162
121
MAHARASHTRA
CHANDRAPUR
122
MAHARASHTRA
DHULE
123
MAHARASHTRA
GADCHIROLI
124
MAHARASHTRA
JALGAON
125
MAHARASHTRA
JALNA
126
MAHARASHTRA
KALYAN
127
MAHARASHTRA
KOLHAPUR
128
MAHARASHTRA
NAGPUR
129
MAHARASHTRA
NASIK
130
MAHARASHTRA
PEN
131
MAHARASHTRA
PUNE
132
MAHARASHTRA
RATNAGIRI
133
MAHARASHTRA
SANGLI
134
MAHARASHTRA
SATARA
135
MAHARASHTRA
SHOLAPUR
136
MAHARASHTRA
WARDHA
137
MAHARASHTRA
YEOTMAL
138
MAHARASHTRA
AKOLA
139
MAHARASHTRA
KUDAL
140
MAHARASHTRA
LATUR
141
MAHARASHTRA
MUMBAI
142
MAHARASHTRA
NANDED
143
MAHARASHTRA
OSMANABAD
144
MAHARASHTRA
PANJI
145
MAHARASHTRA
PARBHANI
146
MADHYA PRADESH
BALAGHAT
147
MADHYA PRADESH
BETUL
148
MADHYA PRADESH
BHOPAL
149
MADHYA PRADESH
CHHATARPUR
150
MADHYA PRADESH
CHHINDWARA
151
MADHYA PRADESH
DAMOH
UL(VNO) agreement updated up to 31.03.2024
163
UL(VNO) agreement updated up to 31.03.2024 163
152
MADHYA PRADESH
DHAR
153
MADHYA PRADESH
GWALIOR
154
MADHYA PRADESH
INDORE
155
MADHYA PRADESH
ITARSI
156
MADHYA PRADESH
JAGDALPUR
157
MADHYA PRADESH
JHABUA
158
MADHYA PRADESH
KHANDWA
159
MADHYA PRADESH
KHARGONE
160
MADHYA PRADESH
MANDLA
161
MADHYA PRADESH
MANDSAUR
162
MADHYA PRADESH
MORENA
163
MADHYA PRADESH
RAIGARH
164
MADHYA PRADESH
RAIPUR
165
MADHYA PRADESH
RATLAM
166
MADHYA PRADESH
REWA
167
MADHYA PRADESH
SEONI
168
MADHYA PRADESH
SHIVPURI
169
MADHYA PRADESH
VIDISHA
170
MADHYA PRADESH
BILASPUR
171
MADHYA PRADESH
DEWAS
172
MADHYA PRADESH
DURG
173
MADHYA PRADESH
GUNA
174
MADHYA PRADESH
JABALPUR
175
MADHYA PRADESH
NARSINGHPUR
176
MADHYA PRADESH
PANNA
177
MADHYA PRADESH
RAISEN
178
MADHYA PRADESH
RAJGARH
179
MADHYA PRADESH
SAGAR
180
MADHYA PRADESH
SARGUJA (AMBIKAPUR)
181
MADHYA PRADESH
SATNA
182
MADHYA PRADESH
SHAHDOL
UL(VNO) agreement updated up to 31.03.2024 164
183
MADHYA PRADESH
SHAJAPUR
184
MADHYA PRADESH
SIDHI
185
MADHYA PRADESH
UJJAIN
186
DELHI
DELHI
187
NORTH EAST
ARUNACHAL PRADESH (ZERO)
188
NORTH EAST
MANIPUR (IMPHAL)
189
NORTH EAST
MEGHALAYA (SHILLONG)
190
NORTH EAST
MIZORAM (AIZAWL)
191
NORTH EAST
NAGALAND (KOHIMA)
192
NORTH EAST
TRIPURA (AGARTALA)
193
ORISSA
BOLANGIR
194
ORISSA
BALASORE
195
ORISSA
BARIPADA
196
ORISSA
BHAWANIPATNA
197
ORISSA
BHUBANESWAR (PURI)
198
ORISSA
CUTTACK
199
ORISSA
DHENKANAL
200
ORISSA
KORAPUT
201
ORISSA
PHULBANI
202
ORISSA
SAMBALPUR
203
ORISSA
SUNDARGARH (ROURKELA)
204
ORISSA
BERHAMPUR
205
PUNJAB
AMRITSAR
206
PUNJAB
PATHANKOT
207
PUNJAB
BHATINDA
208
PUNJAB
FEROZEPUR
209
PUNJAB
HOSIARPUR
210
PUNJAB
JALANDHAR
211
PUNJAB
LUDHIANA
212
PUNJAB
PATIALA
213
PUNJAB
ROPAR
UL(VNO) agreement updated up to 31.03.2024
165
UL(VNO) agreement updated up to 31.03.2024 165
214
PUNJAB
SANGRUR
215
PUNJAB
CHANDIGARH
216
RAJASTHAN
AJMER
217
RAJASTHAN
ALWAR
218
RAJASTHAN
BARMER
219
RAJASTHAN
BHARATPUR
220
RAJASTHAN
BHILWARA
221
RAJASTHAN
BIKANER
222
RAJASTHAN
BUNDI
223
RAJASTHAN
CHITTORGARH
224
RAJASTHAN
JAIPUR
225
RAJASTHAN
JAISALMER
226
RAJASTHAN
JHALAWAR
227
RAJASTHAN
JODHPUR
228
RAJASTHAN
KOTA
229
RAJASTHAN
NAGAUR
230
RAJASTHAN
SAWAIMADHOPUR
231
RAJASTHAN
SIKAR
232
RAJASTHAN
SIROHI
233
RAJASTHAN
SRIGANGANAGAR
234
RAJASTHAN
UDAIPUR
235
RAJASTHAN
BANSWARA
236
RAJASTHAN
CHURU
237
RAJASTHAN
JHUNJHUNU
238
RAJASTHAN
PALI (MARWAR)
239
RAJASTHAN
TONK
240
TAMILNADU
TRICHY
241
TAMILNADU
CHENGALPATTU (KANCHEEPURAM)
242
TAMILNADU
COIMBATORE
243
TAMILNADU
CUDDALORE
244
TAMILNADU
DHARAMAPURI
UL(VNO) agreement updated up to 31.03.2024 166
245
TAMILNADU
ERODE
246
TAMILNADU
KARAIKUDI
247
TAMILNADU
MADURAI
248
TAMILNADU
NAGARCOIL
249
TAMILNADU
OOTY
250
TAMILNADU
SALEM
251
TAMILNADU
THANJAVUR
252
TAMILNADU
TIRUNELVELLI
253
TAMILNADU
TUTICORIN
254
TAMILNADU
VELLORE
255
TAMILNADU
VIRUDHUNAGAR
256
TAMILNADU
CHENNAI
257
TAMILNADU
PONDICHERRY
258
UTTAR PRADESH (EAST)
ALLAHABAD
259
UTTAR PRADESH (EAST)
BALLIA
260
UTTAR PRADESH (EAST)
BANDA
261
UTTAR PRADESH (EAST)
BARABANKI
262
UTTAR PRADESH (EAST)
FARRUKHABAD
263
UTTAR PRADESH (EAST)
GORAKHPUR
264
UTTAR PRADESH (EAST)
JHANSI
265
UTTAR PRADESH (EAST)
KANPUR
266
UTTAR PRADESH (EAST)
LAKHIMPUR KHERI
267
UTTAR PRADESH (EAST)
LUCKNOW
268
UTTAR PRADESH (EAST)
MIRZAPUR
269
UTTAR PRADESH (EAST)
RAIBAREILLY
270
UTTAR PRADESH (EAST)
SITAPUR
271
UTTAR PRADESH (EAST)
AZAMGARH
272
UTTAR PRADESH (EAST)
BAHRAICH
273
UTTAR PRADESH (EAST)
BASTI
274
UTTAR PRADESH (EAST)
DEORIA
275
UTTAR PRADESH (EAST)
ETAWAH
UL(VNO) agreement updated up to 31.03.2024
167
UL(VNO) agreement updated up to 31.03.2024 167
276
UTTAR PRADESH (EAST)
FAIZABAD
277
UTTAR PRADESH (EAST)
FATEHPUR
278
UTTAR PRADESH (EAST)
GHAZIPUR
279
UTTAR PRADESH (EAST)
GONDA
280
UTTAR PRADESH (EAST)
HAMIRPUR
281
UTTAR PRADESH (EAST)
HARDOI
282
UTTAR PRADESH (EAST)
JAUNPUR
283
UTTAR PRADESH (EAST)
MAINPURI
284
UTTAR PRADESH (EAST)
ORAI
285
UTTAR PRADESH (EAST)
PRATAPGARH
286
UTTAR PRADESH (EAST)
SAHJAHANPUR
287
UTTAR PRADESH (EAST)
SULTANPUR
288
UTTAR PRADESH (EAST)
UNNAO
289
UTTAR PRADESH (EAST)
VARANASI
290
UTTAR PRADESH (WEST)
ALMORA
291
UTTAR PRADESH (WEST)
BAREILLY
292
UTTAR PRADESH (WEST)
BUDAUN
293
UTTAR PRADESH (WEST)
DEHRADUN
294
UTTAR PRADESH (WEST)
UTTARKASHI
295
UTTAR PRADESH (WEST)
AGRA
296
UTTAR PRADESH (WEST)
ALIGARH
297
UTTAR PRADESH (WEST)
BIJNORE
298
UTTAR PRADESH (WEST)
ETAH
299
UTTAR PRADESH (WEST)
GHAZIABAD
300
UTTAR PRADESH (WEST)
KOTDWARA
301
UTTAR PRADESH (WEST)
MATHURA
302
UTTAR PRADESH (WEST)
MEERUT
303
UTTAR PRADESH (WEST)
MORADABAD
304
UTTAR PRADESH (WEST)
MUZAFFARNAGAR
305
UTTAR PRADESH (WEST)
NAINITAL
306
UTTAR PRADESH (WEST)
PILIBHIT
UL(VNO) agreement updated up to 31.03.2024 168
307
UTTAR PRADESH (WEST)
RAMPUR
308
UTTAR PRADESH (WEST)
SAHARANPUR
309
WEST BENGAL
ASANSOL
310
WEST BENGAL
BALURGHAT (RAIGANJ)
311
WEST BENGAL
BEHRAMPUR
312
WEST BENGAL
CALCUTTA
313
WEST BENGAL
JALPAIGURI
314
WEST BENGAL
KRISHNAGAR
315
WEST BENGAL
MALDA
316
WEST BENGAL
MIDNAPUR (KHARAGPUR)
317
WEST BENGAL
PURULIA
318
WEST BENGAL
BANKURA
319
WEST BENGAL
COOCH BEHAR
320
WEST BENGAL
DARJEELING (SILIGURI)
321
WEST BENGAL
GANGTOK
322
WEST BENGAL
SURI
UL(VNO) agreement updated up to 31.03.2024
169
UL(VNO) agreement updated up to 31.03.2024 169
56Annexure-VII to Unified License (Virtual Network Operators) Agreement
List of other income to be excluded from GR to arrive at ApGR
Sl.
No.
Item/ Head of
‘Other
Income’
Description and conditions applicable
a.
Income from
Dividend
Income from dividend is return on investment made by the company.
Such investment is made out of surplus funds available with the
company. Companies Act, 2013 and Accounting Standard-9
classified dividend income as ‘other income’ i.e., distinct from the core
operations of the entity.
Therefore, income from dividend shall not be part of ApGR for the
purpose of computation of LF.
b.
Income from
Interest
Income from interest is return on investment made by the company in
bank deposits, corporate deposits, debentures etc. Such investment
is made out of surplus funds available with the company. Also
sometimes, Licensee receives interest from Tax Authorities on
advance tax or refundable tax. Companies Act, 2013 and Accounting
Standard-9 classified interest income as ‘other income’ i.e., distinct
from the core operations of the entity.
At the same time, Licensee accepts refundable deposits from
customers, telecom vendors and other Licensees. These deposits
essentially are part of telecom operations. The interest income earned
on such amounts should be recorded and certified by statutory
auditors.
Therefore, income from interest shall not be part of ApGR for the
purpose of computation of LF. However, interest earned on
refundable deposits from customers, telecom vendors and other
Licensees shall be considered in ApGR for the purpose of
computation of LF. Also, any refundable deposit received by the
Licensee on the strength of telecom service viz. linkage with tariff,
advance rental etc. shall also have similar treatment for inclusion in
ApGR.
c.
Capital gains
on account of
profit on sale
of
fixed
assets
and
securities
Capital gain earned by the Licensee on the account of profit on sale
of assets and securities, are of from investing activities instead of from
telecom operations. Therefore, the revenue on account of sale of
immovable property, securities, warrants or debt instruments, other
items of fixed assets shall not be part of ApGR for the purpose of
computation of LF.
d.
Gains
from
Foreign
Foreign Exchange differences arise when actual rates at the time of
settlement differs from those at which they were initially recorded in
56 Amendment vide DoT letter no. 20-271/2010-AS-I(Vol.V) dated 25th October, 2021
UL(VNO) agreement updated up to 31.03.2024 170
Exchange
rates
fluctuations
the books. The provisions contained in the Accounting Standard-11
require a notional entry for exchange differences in respect of
liabilities at the closing date of the AFSs. The foreign exchange gains
reflected in the profit and loss statement of Licensee could arise from
reduction of payment liability or increase in the value of foreign
exchange accounts receivables. In other words, foreign exchange
fluctuation is a contingency which has impact on every business
which may have something to do with foreign exchange and is not
specific and unique to telecom business.
Therefore, revenue/profit arising out of upward valuation or
devaluation on account of fluctuation of foreign exchange shall not be
part of ApGR for the purpose of computation of LF.
e.
Income from
property rent
Licensee may rent or lease part of their properties and earn revenue
in the form of rent. Some Licensees as part of staff welfare measure
provides staff quarters to their employees and receive rent from such
staff. Revenue from rent cannot be distinctly treated as only from
telecom business. Therefore, revenue/income from property rent shall
not be part of ApGR for the purpose of computation of LF. In case
property is let out for ‘establishing, maintaining and working of
telecommunication’, then revenue/income from such rent shall be
considered in ApGR for the purpose of computation of LF.
f.
Insurance
claims
A receipt from Insurance company against loss of property/fixed
assets is basically a reimbursement in nature for the loss occurred by
the Licensee. Receipt of insurance claim from insurance company
shall not be part of ApGR for the purpose of computation of LF.
g.
Bad
Debts
recovered
Bad debt is an amount owed by a debtor that is unlikely to be received/
realized and recognized as an expense in the books of accounts. Bad
Debts recovered represents reversal of debits (i.e. bad debts)
appearing in the profit and loss account of previous year(s). This
basically represents an adjustment to the amount of an expense (i.e.
bad debts) as estimated in an earlier year(s) in which it had already
recorded as part of revenue from operations.
Therefore, income on account of bad debts recovered shall not be
part of ApGR for the purpose of computation of LF.
h.
Excess
Provisions
written back
Excess Provisions written back represent the reversal of excess
provision made for any liability or expenses in any previous year. On
settlement, this excess provision is written back into books of
accounts as other income. This basically represents an adjustment 60
instead of actual revenue earned.
Therefore, income on account of excess provisions written back shall
not be part of ApGR for the purpose of computation of LF.
