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VNO Internet Service Authorisation under the Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026
VNO Internet Service Authorisation (2026)
The Department of Telecommunications (DoT) has introduced the Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026, replacing the earlier licensing framework with a modern authorisation regime.
One of the important authorisations under these rules is the Internet Service Authorisation (ISA), which allows eligible entities to provide internet-related telecommunications services in India.
Within this framework, a Virtual Network Operator (VNO) plays a significant role by delivering internet services using the infrastructure of a Parent Network Service Operator (NSO). This enables businesses to enter the telecom market without investing heavily in telecom infrastructure while still complying with regulatory requirements.
This article explains everything you need to know about the VNO Internet Service Authorisation, including its scope, permitted services, technical conditions, operational requirements, categories and frequently asked questions.
What is a Virtual Network Operator (VNO)?
A Virtual Network Operator (VNO) is an authorised telecom service provider that offers internet services using the network infrastructure of a Parent Network Service Operator.
Unlike a Network Service Operator, a VNO does not establish and operate its own nationwide telecom network. Instead, it enters into a commercial agreement with an authorised NSO and provides telecom services using the Parent NSO’s infrastructure.
This model significantly reduces infrastructure costs while allowing companies to focus on customer acquisition, service quality, and innovative internet-based solutions.
What is VNO Internet Service Authorisation?
Internet Service Authorisation (ISA) authorises an entity to provide internet-related telecommunications services under the Telecommunications Authorisation Rules, 2026.
For a VNO, this authorisation enables the provision of internet services while relying on the Parent NSO’s network infrastructure.
The authorisation replaces the traditional ISP licence framework and introduces a more streamlined regulatory approach.
What Services are Permitted under VNO Internet Service Authorisation ?
A VNO holding an Internet Service Authorisation may provide the following principal telecommunication services:
- Internet Service –The VNO may provide broadband internet connectivity to residential, enterprise, institutional, and commercial customers using the Parent NSO’s network. These services may include Broadband Internet , Fiber Internet ,Wireless Internet and Enterprise Internet Solutions
- Internet Telephony –A VNO may offer Internet Telephony services within the scope permitted by the Government. Internet Telephony is limited to Computer-to-computer communication ,IP device to overseas PSTN/PLMN users and Static IP-based communication between approved devices However, Internet Telephony cannot replace conventional telephone services within India.
- Domestic Leased Circuit (DLC) – A VNO may provide dedicated leased circuits to customers using the infrastructure of its Parent NSO . Domestic Leased Circuits are commonly used by Banks ,Data Centres ,Corporate Offices ,Government Organisations and Educational Institutions
- Internet Leased Line (ILL) – Internet Leased Line provides dedicated high-speed internet connectivity with guaranteed bandwidth. ILL services are commonly preferred by Enterprises ,IT Companies ,Cloud Service Providers ,Data Centres ,BPOs ,Financial Institutions
- Internet Protocol Television (IPTV) – A VNO may provide IPTV services in accordance with applicable Government regulations. IPTV delivers television content using Internet Protocol networks instead of conventional cable television.
- Machine-to-Machine (M2M) Services –The authorisation also permits Internet-based Machine-to-Machine communication. Examples include: Smart Meters ,Smart Agriculture ,Vehicle Tracking ,Industrial Automation ,Smart Cities ,Smart Healthcare
- In-flight and Maritime Connectivity – Where authorised for the National Service Area, a VNO may provide internet connectivity for Aircraft ,Ships and Offshore platforms subject to applicable Government approvals
Infrastructure through which Services may be Provided
A VNO may provide services through:
- Wireline Network
- Wireless Network
- Satellite Network
- Submarine Cable Network
- Fixed Wireless Terminals
- Routers
- Switches
- Fixed IoT Devices
- Other approved Customer Premises Equipment
What is Operational Framework of a VNO (ISA)
The VNO business model revolves around the Parent NSO.
The VNO:
- Acquires customers,
- Markets telecom services,
- Provides customer support,
- Bills customers,
- Manages service delivery,
while the Parent NSO provides the underlying telecom infrastructure.
This model encourages competition and improves service availability without requiring every operator to build an independent telecom network.
Parent NSO Agreement
A VNO must execute a formal agreement with the Parent Network Service Operator.
The agreement governs:
- network access,
- bandwidth,
- service provisioning,
- operational responsibilities,
- compliance obligations.
Any agreement or modification must be reported to the Central Government within seven days.
How may types of VNO Internet Service Authorisation (ISA) ?
Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026, the Internet Service Authorisation (ISA) is divided into two categories for Virtual Network Operators (VNO).
What are two service authorisations of VNO Internet Service Authorisation (ISA) ?
The VNO Internet Service Authorisation (ISA) is available in two Internet Services Authorization:
- Internet Services Authorization (National)
- Internet Services Authorization (Circle/Metro)
These categories allow applicants to choose whether they wish to provide Internet Services across India or within specific telecom circles.
What is the Fee Structure for Each Category of VNO Internet Service Authorisation (ISA)?
The fee structure differs for these two VNO Internet Services Authorization (ISA) generally includes:
| Serial No. | Service Authorisation | Area | Processing Fee (Rs.) | Entry Fee (Rs.) | Initial Guarantee (Rs.) | Minimum Equity Capital | Minimum Networth |
| 1 | Internet Services Authorization (National) | National service area | 10,000 | 10 lakh | 1 lakh | 10 Lakh | Nil |
| 2 | Internet Services Authorization (Circle/Metro) | Telecom circle or metro service area | 10,000 | 50,000 (25,000 for North East and Jammu and Kashmir) | 10,000 | 1 Lakh | Nil |
This distinction—National Service Area versus Telecom Circle / Metro Service Area—is the correct categorisation under the 2026 Rules, rather than the old ISP Category A/B/C system.
Frequently Asked Questions (FAQs)
Q1. Can a VNO provide broadband services?
Yes. A VNO may provide broadband internet services using the network infrastructure of its Parent NSO.
Q2. Can a VNO build its own telecom backbone?
No. A VNO operates using the infrastructure of its Parent Network Service Operator.
Q3. Is a Parent NSO agreement mandatory?
Yes. A valid agreement with the Parent NSO is mandatory and must be reported to the Government.
Q4. Can a VNO directly interconnect with other telecom operators?
No. All interconnections must be routed through the Parent NSO.
Q5. Can a VNO offer Internet Leased Line services?
Yes. Internet Leased Line and Domestic Leased Circuit services are permitted through the Parent NSO’s network.
Q6. Does a VNO need to comply with Net Neutrality rules?
Yes. Compliance with Net Neutrality obligations is mandatory.
How to get a VNO Internet Service Authorisation (ISA) ?
The VNO Internet Service Authorisation application is an extensive process subject to strict adherence to complete and accurate paperwork and procedure. An error in paperwork is likely to delay the process by several weeks or even months leading to loss of time and money.
Hiring an experienced VNO consultant can help you save time and efforts and get an VNO Internet Service Authorisation without a hassle in stipulated time period. If you have a query regarding the VNO license Registration, then do get in touch with us. We will be glad to assist you.
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