Presentation on Challenges faced by ISPs by Sharktel Infocom Pvt Ltd, Kolkata at the "Immersion Programme" organized by the O/o the Principal Controller of Communication Accounts, Kolkata on 26th September, 2023 where ISPs & VNOs discussed about major compliance challenges and hurdles faced during business operation and expansions.

1. SHARKTEL INFOCOM PVT LTD
UL-ISP (VNO) – CAT B (KOLKATA SSA)
License No. DS-11/201/2018-DS-III

2. AGENDA
• SHARKTEL INFOCOM – A brief overview
• Our Business Model & Operational Area
• Major Compliance Burdens
• Discussions on Bundled Service Offerings like OTT/IPTV/VoIP
• Major Hurdles in Business Operations & Expansions
• Requests to DoT

3. SHARKTEL INFOCOM – A BRIEF OVERVIEW
Company founded on 7th December, 2015.
Started small scale business operations as franchise to an ISP. Service Portfolio
included – Broadband, Leased Line, Network Consultancy, Technical Support &
Managed Network Services. Client base focused on Enterprise & Business Users.
UL-ISP (VNO) CAT-B (Kolkata) License received on 28th January, 2019. Currently we are
serving around 150+ Corporate Clients with a 10 member team.

4. BUSINESS MODEL & OPERATIONAL AREA
• We purchase Internet Leased Line from our NSO
via fiber.
Purchase Bulk Bandwidth
• We then terminate the link in our distribution
equipment (Switch / OLT) which also connects our
Subscriber Management System, IPDR (Log Server) etc.
Infrastructure
• The link is then delivered to our end customers
via optical fiber cable using Passive Optical Network
(PON) where ONT is installed at customer premises
allowing them to use upto 1 gbps connectivity.
Last Mile Delivery (via Fiber)
In some scenarios, where laying OFC is critical or
customer requires redundant links, we deliver the link
via license-free Point-to-Point wireless radios. Thus
ensuring upto 99.9% uptime to our end user.
Last Mile Delivery (via Wireless)

5. MAJOR COMPLIANCE BURDENS
HIGH LICENSE FEE
•Current License Fee of 8% creates a huge burden on Small to Medium VNO/ISPs.
•Since, the internet industry is highly competitive and “FREE” services by a lot of Telco/ISP creates a huge
impact on the revenue generated.
MULTIPLE COMPLIANCE REQUIREMENTS
• Several monthly compliance reports from TRAI & TERM every month.
• Some reports could be clubbed together in a single portal for usage by both Departments like Monthly User Reports.
• Almost identical compliance requirements at-par with UL-ISP licensees.
LF ON NON-INTERNET BANDWIDTH RELATED ACTIVIES
• License Fee is calculated on all kind of revenue generated by the Company except some specific heads as mentioned in the last
amendments.
• Revenues from services such as Installation Charges, Technical Support Charges etc. attracts LF but they don’t have direct
relation with the telecom services.
COMPLEX LICENSING STRUCTURE FOR UL-VNO AS CAT-B LICENSE
• UL-VNO AS CAT-B LICENSE is required to provide Landline Services to users by ISP/VNO’s. Currently UL-VNO AS CAT-B LICENSE is
given district wise and there are 23 districts in West Bengal. So, if a VNO with Class B Kolkata License needs to provide the
telephone service, he/she might need to take Kolkata, Howrah, Hooghly, North 24 Parganas to cover the licensed SSA.
• The current license structure for UL-VNO AS CAT-B is highly expensive as each District License costs Rs. 1,95,000.

6. DISCUSSIONS ON BUNDLED SERVICE OFFERINGS
IPTV
 Addition License Requirements (MSO) for live TV
Channels.
 Complex Hardware and Software Setup
 End User Needs to purchase separate IPTV Set
Top Box
OTT
 Purchase OTT packs directly from OTT Providers or
from OTT Aggregators.
 No Separate License / Hardware Requirements.
 End Users can enjoy OTT Services on any Smart Phone
or Smart TVs without additional hardware.
VOICE
 Addition License Requirements UL-VNO AS CAT-B
which is allocated District Wise
 Need to Setup Up Additional Hardware/Software for
Billing / CDR Reports.
 End User Device must be cable of providing Voice
Services.
• The Bundled Service Offerings by several Tier-1 Telcos led to the rise of OTT/IPTV/Voice bundles.
• There are almost no revenue generated from these VAS as these are given as bundled packs.

7. MAJOR HURDLES IN BUSINESS OPERATIONS/EXPANSIONS
LACK OF STANDARDIZATION OF
BROADBAND PACKAGES
Malpractice by several ISP/VNOs and
even Tier-1 telcos where broadband
packages are sold below market price
even “free” are disrupting the healthy
competitive market.
RISE OF ILLEGAL OPERATORS
Some operators who don’t have any
valid license from DoT are involved in
selling broadband package at bare
minimum cost. This creates revenue
loss to DoT as well as pose great
National Security as no proper logs are
maintained.
LACK OF PROPER FRAMEWORK
OF RoW
For Business Expansions, we require OFC
connectivity but there are no proper
framework where we can get RoW
permissions or take rent from Fiber
Providers. Even exorbitant RoW charges
and lack of RoW policy for O/H Fibers
hinders growth.

8. REQUESTS TO DOT
Compliance
Business Operations
Inspection
•Simplify Compliance Requirements for VNOs.
•Consideration for reduction of LF from 8%.
•Standardization for pricing of services under the
guidance of TRAI & DoT.
•Ease of laying OFC or lease from Service
Providers at an affordable cost for quick business
expansions.
•Strict action for NON-ISPs who are in action.
•Regular inspection by ISP to their bulk bandwidth
(ILL) users to keep illegal usage in check.

9. +91-70443
44970
srijit.banerjee@sharktel.c
o
THANK YOU