[189513] in North American Network Operators' Group

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RE: ISP License in the USA?

daemon@ATHENA.MIT.EDU (Naslund, Steve)
Tue May 31 15:58:18 2016

X-Original-To: nanog@nanog.org
From: "Naslund, Steve" <SNaslund@medline.com>
To: "nanog@nanog.org" <nanog@nanog.org>
Date: Tue, 31 May 2016 19:58:12 +0000
In-Reply-To: <alpine.BSF.2.20.1605311437470.24241@cnex.qbaryna.pbz>
Errors-To: nanog-bounces@nanog.org


What you have been hearing so far is correct.  You do not need a license to=
 be an ISP other than normal business licenses in your municipality/state. =
 The only thing I can think of would be if you were a voice carrier or want=
ed to become a CLEC which would give you better/cheaper access to local inf=
rastructure via interconnection agreements (like local loops for DSL and du=
ct/conduit access for building out your own fiber network).  I can tell you=
 that the CLEC route is pretty expensive and has quite extensive regulatory=
 hurdles at both the state and federal level.  If you are a pure data ISP (=
i.e. not originating voice services) running on leased access circuits ther=
e is not much more you should need to do.  Of course, you could and should =
ask this same question of your state's communications commission if you nee=
d a legally sound opinion on this.

Steven Naslund
Chicago IL

-----Original Message-----
From: NANOG [mailto:nanog-bounces@nanog.org] On Behalf Of Sean Donelan
Sent: Tuesday, May 31, 2016 1:55 PM
To: Lorell Hathcock
Cc: 'NANOG list'
Subject: Re: ISP License in the USA?

On Tue, 31 May 2016, Lorell Hathcock wrote:
> Our owner has hired a consultant who insists that we should have an=20
> ISP license to operate in the United States.  (Like they have in other=20
> countries like Germany and in Africa where he has extensive personal=20
> experience.)
>
> I am asking him to tell me which license we should have because I=20
> don't know of a license that we are required to have to route IP=20
> traffic to end customers.
> I am familiar with CLEC status filed with our state.  But it is not a=20
> requirement to pass traffic.
>
> He is suggesting COALS with which I am completely unfamiliar.
>
> Can anyone tell me if there is a Texas state and/or USA Federal=20
> license for a small operator to pass IP traffic from the internet to=20
> end users (commercial and/or residential).
>
> I am aware that there are some CALEA requirements of ISPs that seem to=20
> kick in once a CALEA request is made, but is that different from a licens=
e.

As always, you should consult with your company's attorney or legal advisor=
.

ISP's do not have a seperate license in the USA (besides normal business an=
d tax licenses).

COALS refers to cable operators and multichannel video programming distribu=
tors.

CLEC refers to competitive local exchange carriers (i.e. telephone and priv=
ate line circuits).

Wireless ISPs may need a FCC radio frequency license for high power or excl=
usive use of radio frequencies.  Low-powered Wi-Fi doesn't need a license.

Generally you need some kind of permission or license to install facilities=
 in a public right of way or exclusive use of public airwaves.

ISPs can lease those facilities from licensed operators, and don't need a l=
icense themselves. In practice, most cable operators and telephone companie=
s are also "self-provisioned" ISPs. They have "license" from a state and/or=
 FCC; but that's because they are cable or telephone companies installing t=
elecommunication facilities in public rights of way, not because they are I=
SPs.



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