The Department of Telecommunications (DoT) has decided to permit the resale of the International Private Leased Circuits (IPLC). The move of the telecom department would help the fast-growing small and medium enterprises (SME).

The telecom ministry has created a new category of license called “Resale of IPLC Service”. Business process outsourcing units, software exporters, call centers and banks can get maximum benefit from the resale of International Private Leased Circuits as such industries depend on leased line services to serve the customers.

The Department of Telecommunications (DoT) has set new norms to avail the benefit of resale of IPLC service. The company must be listed in India and must have net worth and paid-up capital of Rs 2.5 crore. 

The benefiting company should also comply with all norms of foreign direct investment. The telecom department has fixed an initial financial bank guarantee of Rs 1 crore and the annual license fee shall be 6 percent of the adjusted gross revenue (AGR), or Rs 5 lakh.