3 ways an IP1 license entity is same as an TSP, and 2 ways it’s not

An infrastructure provider rents, leases or sells passive telecommunication resources – resources that don’t require electricity – to telecom service providers. These resources form the foundation that TSPs use to provide telecom services to the end users.

Considering both a Telecom Service Provider and an Infrastructure provider (also known as an IP 1 entity) get their licenses from Department of telecommunication, you must be curious about the similarities and differences between the two.

We are here to satisfy that curiosity of yours. Find out the three ways, that an IP 1 entity (IP 1 license bearing infrastructure provider) is similar to a simple TSP, and two ways that it’s not.

How is an IP 1 entity similar to a Telecom Service Provider?

Following are three factors that put a telecom service provider and an Infrastructure provider on a common ground.

1. Both have the same license issuing body: To operate as a Telecom service provider, you need to get a unified license (or its variants) from the Department of Telecommunication. It’s the authority that oversees the regulations of telecommunication sector in the country. These are the regulations that cover everything, even the passive – non electronic – infrastructures. Thus, to operate as an Infrastructure provider, you need the IP1 license from the very same department.
2. Both have the responsibility to preserve user data and protect use confidentiality: When you think about maintenance of confidentiality of the end users, you assume that it’s only a telecom service provider who has to take that responsibility. However, an Infrastructure provider is held as much responsible for maintaining data security over the communication lines as a standard telecom service provider.
3. Both have restrictions when it comes to FDI: The restrictions imposed on Foreign Direct Investment for a Telecom Service Providers are the same for an Infrastructure provider.

As you can see, the nature of these similarities focus on the backend infrastructure, stuff that an end user doesn’t care about. However, when you look at the surface, and take a glance at the services that they provide, you’d notice two main differences between the two.

How is an infrastructure provider different from a telecom service provider?

Following are the major differences between a telecom service provider and an Infrastructure provider.

One provides infrastructure, other provides service

The role of an telecom service provider is to provide telegraph services – services associated with telecommunication – to the end users. On the other hand, an infrastructure provider has the responsibility rent, lease or sell passive telecom resources to a telecom service provider. One is providing telecommunication services, and the other one is providing telecommunication infrastructure.

Both have difference end users

Telecommunication Service Providers are here to serve the end users – normal customers – with telecommunication services. These “customers” can either be an entity – a business structure – or an individual. On the other hand, an Infrastructure provider has only one type of end user – the telecom service providers.

These differences can give you a glance at the scope of these businesses. Such differences are further reflected in the procedure to obtain an IP1 license and a standard TSP license (let’s say an ISP License).

Process of obtaining an IP1 license

The procedure to obtain an IP license – authorization to setup an infrastructure provider – is as generic as it gets. It involves merely four steps:

1. Document gathering
2. Application filing
3. Application Assessment
4. Grant of IP1 license

Of course, there is more to these step than just 8 words, but whatever happens, its happens within the bounds of these words.

Process of obtaining a TSP License

There are multiple types of TSP licenses. They all vary depending upon the services you want to provide and the size of the area in which you want to provide them. For now, let’s consider the steps to obtain an IP1 license. They are as follows:

1. Company incorporation
2. Document gathering
3. Application filing
4. Application Assessment
5. Fulfilment of requirements mentioned in the Letter of Intent
6. Signing the License agreement
7. Grant of License

As you can see, the procedure has more steps and more stages of assessment. Count them as the third way in which an IP 1 entity is different from a TSP.

Read Other Useful License: LMPC Certificate

Conclusion

Now you know the difference between an infrastructure provider and a Telecom Service Provider, and you’re also now privy to the similarities between the two. If you want more info, or want to become a TSP or an Infrastructure provider, consult with Registrationwala.

Here are 3 ways an Ip1 license entity is same as an TSP, and two ways they are different. Read this blog and if you have any queries, consult with Registrationwala.