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National Long Distance License

Why is getting the National Long Distance License the need of the hour?

by Registrationwala1.0

India’s telecommunication sector hinges on having the right quantity of bandwidth to be present at the right time. Even though this sector has grown at a breakneck speed, many would still consider it to be a novice – mostly because currently, it is the old players with their hands on the control unit of the industry. Therefore, it is time that more people get interested in the National Long Distance License. 

India’s telecommunication sector is going to enter into its 4th decade soon. Over the past four decades, the telecom industry has gone through many rapid changes. We have seen the emergence of more and more Internet Service Providers. However, the ones that are supplying them the bandwidth – the National Long Distance Operator – are still few in number. Why is that? Read More: Corporate Agent License

The Reason Behind Low count of National Long Distance License

Although only speculation, we can contribute the following reasons behind the lack of NLD Operators in India.

  1. Lack of information: Even in this digital age, where you can find much of the information online, the details about the National Long Distance Service are still sparse. It has left many with questions regarding the necessity of such a service provider.
  2. High License cost: The entry point of the telecommunication sector is really difficult to get into. With the initial capital requirement of INR 2500 Crore, it is safe to say that the government of India did not make it easy for newcomers to enter this field.

These issues have created a large obstacle on the road of those who wish to do more for the telecommunication sector than just provide internet services.

And right now, we are in need of more NLD Operators than before.

Why do we need more National Long Distance License in India?

The transformative time that India’s industries are going through is not news. No one can escape from change – and the telecom sector being at the forefront of India’s development, must be a better part of it. Therefore, the following are the reasons why we need these service providers:

  1. The rising number of ISPs in India: Courtesy of the new regulations, getting the ISP license has now become more accessible. However, these internet service providers still rely on big players to render their facilities to the public. The presence of new NLD operators is necessary to remove that consequent monopoly.
  2. New NLD will be better adopters: The existing players of the telecom sector are slow when it comes to adopting new technologies. However, new players, because of their desire to establish their foothold in the market, are ready accepting transformative developments. Encouragement to more of these startups will help with ushering in a new age for startups in India.

Thankfully, the government has started to realize that and thus, have introduced many incentives that have made the process of obtaining the license easier. Read More: Insurance Marketing Firm

Government Changes to the NLD Certificate

The government of India has been bit by the “ease of business fever” and its symptoms include making it easier for the modern entrepreneur to get access to business license and registration.

  1. Reducing the application processing fees
  2. Decreasing the capital requirement to INR 2.5 Crore
  3. Reducing the bank guarantee requirement to INR 2.5 Crore
  4. Making the procedure to obtain the NLD license online.

Conclusion

Because of the rising number of ISPs in India, we need new players who can provide them with the bandwidth at a reasonable price. As early adopters of telecom technology, these new NLD License holders can help with the growth of India’s telecom sector. Fortunately, the government has realized and has thus come forth with many developments. But more still remains to be done.

A National Long Distance License is the foundation of India’s telecommunication sector. And the rising number of ISPs has made it necessary to have more ISP licensees.

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