Hello, friends.

Can a sole proprietor obtain a license for telematics communication services to sell virtual hosting if Hetzner has servers in Europe?

For sympathizers, let me explain how we encountered this issue.

We are a small web studio that uses servers at Hetzner, and we are very satisfied with the price/quality/infrastructure ratio. While developing projects, we host them on our servers. However, when it's time to transfer the project to the customer's independent hosting, they prefer to stay with us due to the speed and stability of our server, even though they have their own server for 40-50 €/month. They are hesitant to purchase their own server due to high prices and administration problems.

As a solution, we leave customers on our servers and charge $10 per month, labeling it as "technical support of the site" in the contract and invoices. In reality, it functions as virtual hosting.

I don't want us to face legal consequences for selling hosting without a license one day.

As a sole proprietor, if you are offering telematics communication services to sell virtual hosting, it's important to ensure that you comply with the legal and regulatory requirements in your jurisdiction. If Hetzner has servers in Europe, you will need to consider European regulations and licensing requirements.

Here are some steps you can take to address the situation:

1. Consult Legal Advice: Seek legal advice from a lawyer or legal consultant who specializes in telecommunications and hosting services. They can help you understand the specific licensing requirements and regulations that apply to your business activities.

2. Research Licensing Regulations: Research the licensing regulations for telematics communication services and virtual hosting in the countries where you and your clients operate. Different countries may have different licensing requirements.

3. Compliance with Regulations: Ensure that your business operations comply with the regulations related to selling virtual hosting services. This may involve obtaining the necessary licenses, permits, or authorizations from the relevant regulatory authorities.

4. Transparency and Disclosure: Clearly communicate to your customers the nature of the hosting services you provide and any relevant terms and conditions. Transparency in your business practices can help mitigate legal risks.

5. Review Contractual Agreements: Review your contracts and invoices to ensure that they accurately reflect the services being provided. It's important to clearly define the nature of the services and the associated fees in your agreements with customers.

6. Consider Alternative Business Models: Explore alternative business models that align with the legal requirements. For example, you may consider partnering with a licensed hosting provider to resell their services under a partnership or reseller agreement.

You may also consider reaching out to the regulatory authorities or industry associations related to telecommunications and hosting services in your region to gain a better understanding of the specific licensing requirements and compliance standards applicable to your business activities.

Furthermore, it's advisable to conduct a thorough review of your business operations and financial practices to ensure transparency and alignment with any legal and regulatory obligations associated with offering hosting services.

By taking these proactive steps and seeking expert guidance, you can navigate the complexities of the legal and regulatory landscape, safeguard your business from potential legal repercussions, and operate within the boundaries of the law while providing valuable hosting services to your clients.

First of all, it's important to note that whether or not you have a license has nothing to do with our location - we don't live in Chicago. Also, in the legal context, the term "hosting" is not even mentioned in the legislation, and "telematics services" typically involve a communication node with connections to various surveillance systems such as SORMS.

If the invoice or contract doesn't explicitly state "telematics services," proving that technical support, including hosting customer sites abroad, requires a license can be quite challenging. Additionally, the financial stakes are different, so there's no need to worry too much.

The same issue was actually resolved in a manner similar to yours.

Under the agreement, we offer the service of "searching for and purchasing hosting with specified parameters," as well as providing "configuration and administration services if necessary," while we cover "all expenses related to the search and acquisition."

In this case, everything is true not only in letter, but also in spirit. The server is sourced from Hetzner for search and purchase, and is configured and managed on VDS/wirth.hosting.

It is essential that the contract does not imply that you are personally providing services related to telematics, and ideally, it should explicitly disclaim any responsibility for such services (which is one of the indicators of providing telematics services).

Why not consider offering a managed services agreement with your clients, where you provide them with a customized hosting solution that includes technical support, maintenance, and updates? This way, you can still offer a hosting-like service without actually being a hosting provider.
You can partner with a hosting provider to access their infrastructure and focus on providing value-added services to your clients. This approach allows you to maintain your competitive edge while avoiding regulatory issues.