A VNO License is a permit to run an ISP via a virtual network. The hardware requirements are low, performance bank guarantee is absent and it allows the service providers to give internet services at an affordable prices. In this world that is moving away from hardware, a Virtual Network Operator is a sign of new technology.
So, if you’re getting a VNO license instead of Unified License for ISP, you should know why you’re doing that.
And we are here to tell you.
You understand the low cost implications of UL VNO License
ROI or return on investment is the primary – and the only – concern of most businesses in India. Entrepreneurs want the investment as low as possible but want to gain as much as possible profits.
We’re not going to debate the jaded mindset that lies behind this thought. However, with a VNO license, one has to power to earn high profits, without compromising the quality of the services.
The non reliance on a lot of hardware reducing the VNO License cost
Let’s talk about the low cost again. A VNO ISP provides internet services via a virtual network. It established contact with a telecom service provider.
It then asks the service provider to sell VNO the internet bandwidth. The telecom service provider does so, but on a condition that it will be the one providing the hardware – not letting the VNO use anything of their own.
It sounds restrictive, not being able to establish your own network to provide internet services. However, it’s a boon disguised as an inconvenience. Because you don’t the obligation to setup the hardware:
- You’re free to focus on providing the services.
- Hardware costs a lot of money, and absence of it lowers your CAPEX to levels that set you up for good ROI.
Signing the unified license agreement as a VNO lets you ride on the popularity of your service providers
When you sign a unified license agreement with a telecom service provider, you don’t have to spend much on marketing. As you’re basically a franchisee of that telecom service provider, you can use its establish brand to get more customers.
Furthermore, if you intend to make more money and get more customers, you can do so using the telecom companies name as the driver of your brand.
DOT is more inclined to issue Unified License DOT
The current market is overcrowded with traditional internet service providers. All of them use a lot of hardware resources that require raw materials that are slowly and gradually decreasing.
To cut the costs and to move India towards the path of sustainable developments, the Department of Telecommunication is now promoting VNO. Thus, getting a Unified license by DOT doesn’t only make you a winner, it also helps the government to move forward with its own agenda.
Absence of performance bank guarantee
When we discuss VNO license v/s ISP License, one of the things that make getting the standard ISP license so risky is the presence of performance bank guarantee.
At the time of application filing, the government asks the ISP license hopeful to submit a set performance bank guarantee. It puts pressure on the ISP to perform better. If it doesn’t the enormous amount submitted to the bank as Performance Bank Guarantee is lost.
That’s not the case with VNO. While when you opt for VNO license online, you also apply to submit the financial bank guarantee, it’s far lower than what the performance bank guarantee would be. it helps you in two ways:
- Reduces the overall VNO License fee
- And, removes performance from your VNO to perform better in terms of profits.
VNO license India gives you access to a more flexible network
The amount of people using the internet is increasing with every passing day. That’s why, there is a constant need to scale up the services. That generally involves a lot of additional hardware, costs, and bandwidth. A traditional ISP thus has to spend a lot of money on hardware to cater to a rising number of subscribers.
Now consider a VNO. It’s providing internet access to a Virtual Network Operator. Thus, instead of the need of additional hardware, it has to just alter the virtual network in small ways to scale up the services. It’s more flexible as compared to a ISP license.
Providing internet services in a unified way
Most opt for an ISP license because they want to provide all the services. They opt for a unified license – meaning that they want to hold monopoly over the services that they provide. However, providing complete services by an ISP is not cost-efficient.
Thus, another reason most are Getting VNO license instead of a unified license for ISP is that the signing a VNO license agreement for unified services gives them the exact same ability – but at a much lower cost.
So, why sign for an ISP when a VNO license agreement gives you the same right.
Conclusion
Getting the VNO license gives you the same right as an ISP license, but at a smaller scale. But smaller doesn’t always mean worse. Everything you’d do after getting the MVNO license would cost you less money. So, if you’re looking for VNO license India, you’re making the right choice.
Want to make your choice even more right? Choose the right service providers for your services as well. Just think and Choose Registrationwala.
