Franchise and LCO partners are how many Indian ISPs grow beyond one area. A partner brings local customers, a local team and local trust; you bring bandwidth, the licence and the network. The model works well until money and data get mixed up: a partner who owes you for months, plans sold below your price, or subscribers you cannot see. This guide explains how internet service providers can manage franchise and LCO partners with three tools: prepaid wallets, clear commission and controlled access.
Common partner models for ISPs in India
Partners go by many names (franchise, LCO, reseller, sub-ISP, channel partner), but most arrangements fall into one of these models:
| Model | How money flows | Best for |
|---|---|---|
| Prepaid wallet | Partner tops up a wallet with you; each recharge they sell is deducted at your partner price | Most LCOs and franchises; lowest risk for the ISP |
| Commission | Subscribers pay the ISP directly; the partner earns a fixed amount or percentage per recharge | Partners who mainly find customers and handle field work |
| Revenue share | Collections are split between ISP and partner at an agreed ratio | Large partners running their own area like a branch |
| Credit / monthly settlement | Partner sells now and settles the amount at month end | Only trusted, long-standing partners; highest risk |
The problems ISPs face with partners
- Unpaid partner dues. On credit, a partner can sell for months and settle late, or not at all.
- Price undercutting. A partner sells your plans cheaper than you or other partners, and the area turns into a price war.
- Disputes over commission. Commission worked out by hand in Excel leads to arguments every month.
- No visibility. You do not know how many active subscribers a partner has, or who is expiring.
- Subscriber poaching. A partner leaves and takes the subscriber list with them, or moves customers to another provider.
- Too much access. Partner staff see other areas’ subscribers or can change plans and give discounts freely.
How to manage franchise and LCO partners: 7 steps
1. Put partners on a prepaid wallet
The simplest way to stop partner dues is to stop giving credit. With a prepaid wallet, the partner tops up first. Every time they recharge a subscriber, the partner price is deducted from the wallet. When the wallet is empty, they top up again before selling more. You never chase a partner for money. The same idea works for your own subscribers too; see prepaid vs postpaid broadband billing.
2. Give each partner a price book
Decide which plans each partner can sell and at what partner price. Keep the subscriber selling price the same across all partners in an area, so customers do not shop around between your own franchises. Different partners can have different margins without changing what the subscriber pays.
3. Calculate commission automatically
If you pay commission instead of, or as well as, using a wallet, define it once: a fixed amount per recharge, a percentage, or different rates for different plans. Then let it be calculated on every recharge. A monthly commission report that both sides can see ends most disputes.
4. Give partners their own panel, with limited access
Each partner should log in to their own panel and see only their own subscribers, plans and reports. Inside the partner’s team, give staff only what they need: the collection agent records payments, the technician handles complaints, and only the partner owner can give a discount within the limit you set.
5. Keep subscriber records and KYC in your system
As the licensed ISP, you are responsible for subscriber records and KYC/CAF documents. Keep them in your own system, not in the partner’s notebook. If a partner leaves, the subscribers, their plans and their history stay with you, and you can move them to another partner or serve them directly.
6. Control the network from billing
Subscribers recharged by a partner should be activated, suspended and renewed the same way as your own: automatically, based on payment and expiry. If a partner’s wallet is empty and they do not recharge a subscriber, that subscriber’s plan simply expires on time. Nobody switches users on or off by hand. Read more about collecting broadband dues on time.
7. Review each partner every month
Look at a few numbers for every partner: active subscribers, new connections, renewals, expired subscribers who did not renew, wallet top-ups and commission paid. A partner whose expired list keeps growing needs help, or a conversation.
What to put in a partner agreement
- The area or zone the partner covers
- The partner model: wallet, commission, revenue share or a mix
- Partner prices, subscriber prices and the plans they may sell
- Who handles installation, complaints and collections
- Who owns the subscriber records and what happens to them if the partnership ends
- Equipment: who owns the ONUs, routers and cable installed at subscribers’ homes
- Notice period and settlement on exit
Get the agreement reviewed by your legal adviser, especially the clauses on subscriber data and your licence obligations.
How ISPMate helps ISPs manage partners
ISPMate is cloud-based ISP billing software for internet service providers in India. For franchise and LCO partners it gives you:
- A separate panel for each reseller or franchise, showing only their own subscribers
- A prepaid wallet: recharges are deducted from the partner’s wallet automatically
- Commission calculated automatically on every recharge
- Control over which plans each zone or partner can sell
- Role-based access, with area-wise data and limits on discounts and refunds
- Subscriber records, KYC/CAF and payment history kept in your system
- Automatic suspension on expiry and reconnection on payment, the same for partner and direct subscribers
- Partner-wise reports on subscribers, renewals, collections and commission
Frequently asked questions
What is an LCO in the broadband business?
An LCO (local cable operator) is a local operator who serves subscribers in a small area. Many LCOs that started with cable TV now also sell broadband as a partner or franchise of a licensed ISP.
What is the best payment model for ISP franchise partners?
For most ISPs, a prepaid wallet is the safest. The partner tops up first and each recharge is deducted at the partner price, so the ISP never has to chase partner dues.
How should commission be calculated for ISP resellers?
Commission is usually a fixed amount or a percentage per recharge, sometimes different for each plan. Define it once in your billing system so it is calculated automatically and both sides see the same report.
How can an ISP stop partners from undercutting prices?
Give each partner a price book with the plans they may sell and a fixed subscriber price for the area. Partners can earn different margins, but the subscriber pays the same price everywhere.
Who owns the subscribers when a franchise partner leaves?
That depends on your agreement, but as the licensed ISP you are responsible for subscriber records and KYC. Keeping all subscriber data in your own billing system means the records stay with you if a partner leaves.
Want wallets, commission and partner panels in one system? Book a free ISPMate demo or call +91-9310313545.