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What is Infrastructure as a Service and how to start it?

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Vicky Kumar
What is Infrastructure as a Service and how to start it?

Infrastructure is what gives structure to any business. For real estate, it’s the brick, mortar and the finances. For a CA firm, it’s the building and the taxes. And for the telecom industry, it’s the cell towers, duct space, and the antennas. When you start infrastructure as a service, it’s the telecom industry you intent to cater to. 

Consider India almost a decade ago, the year when Ambani junior practically ruled the telecom market. While is name is now buried among many failed venture, he has somehow been able to still stay relevant because he had good Infrastructure. But it’s not his. It’s the Infrastructure provider that laid the foundation of 2G networks. 

And the same infrastructures are now laying the foundation of 5G networks 5 years  later. The requirements are many, but the providers are few. It opens opportunities if you think becoming an infra  as a service provider is for you. 

What is the IP License?

IP License is known by different names in different domains. However, when telecom industry is concerned, an IP1 License is the authorization to become infrastructure as a service providers. It’s the authority that allows the licensee to rent passive telecom resources such as the following to the telecom companies:

  1. Base Station
  2. Cell towers
  3. Antennas
  4. Right of Way 
  5. Duct Space
  6. Node stations. 

Without the above resources, the telecom industry won’t have the skeletal system to support its meaty flesh. However, without the IP 1 license from the Department of Telecommunication, there can be no infrastructure provider. 

How to get the IP1 license?

The correctness of filing the IP1 License application form goes hand in hand with the payment of the right fees in the IP1 license procedure. Following are the steps to make it easy for you:

    1. Become eligible to acquire the license: First, you need to elevate your business idea into a business entity, known as a private limited company to qualify to apply for the IP1 License. 

 

  • Put together a file with the required documents: Those documents are as follows:

 

      1. The PAN card of your Company
      2. Certificate of Incorporation of your company
      3. Memorandum of Association of your company 
      4. KYC of all the directors of your company
      5. List of all the directors and shareholders involved with your IP1 company. 
      6. Details of the infrastructure that you’re providing to the telecom industry stakeholders. 

 

  • Add a duly filled application form to that file: The IP1 License application form is a complex one to file on your own. Consult with telecom license consultants, they can file it on your behalf. Don’t forget to attach the demand draft of INR 5,000/- with the application. 
  • Monitor the application as it’s processed: Once you’ve submitted the application, it won’t be taken to processing officials instantly. Remember that like you, many others would have the same idea of becoming infrastructure providers. That being said, there is a way to skip the line. But for that, you need consultants. 
  • Conduct a follow up: The cases of getting the application approved in one stroke are rare. That’s why, you have to do repeated follow up to get your application accepted. 
  • Get the IP1 License: After your application is approved, the Department of Telecommunication with send you the IP 1 registration documents. 

 

Once you have a hold of the IP 1 license, you have 6 months to get into contract with a telecom company and start your business. Thus, before getting the license, make sure that your infrastructure, finances and timelines are ready. 

Conclusion

Infrastructure as a service is business where you, through the infrastructure you sell, rent or lease, support other industries. To start such a lucrative, and financially straining venture, you need to acquire the IP 1 license. To get the license, you need the help of the Telecom consultants. To get aid of the right consultants, you can reach out to us. 

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