Sunday, June 28, 2009

[TTABSNL] ISPs may get more netwidth





The government is proposing Rs 43 crore as entry fee for allowing internet service providers (ISPs) the right to offer domestic phone

services using computers, a sharp climbdown from its earlier insistence on a Rs 1,651 crore fee.

Full-fledged internet telephony will allow consumers to make cheaper calls from PCs or laptops to fixedline and mobile phones in India. They can also make a call to personal computers from their mobile hand-sets. At present, a call from a computer can legally be made only to another computer within the country, and not to a phone. But the existing re-gime allows domestic users to make international calls to a phone from their computer. ISPs claim that net telephony will allow users to make STD calls for as low as 10-40 paise per minute while local
calls will be free.

The department of telecom (DoT)'s proposal, to which ET has access, will if implemented give ISPs a pan-India internet telephony licence for Rs 43 crore. Those wanting to offer these services regionally will pay a lower fee.

DoT's earlier logic for demanding a Rs 1,651 crore entry fee was that this was the amount paid by telecom companies to get a licence and spectrum for mobile phone services.

Now, it is justifying the proposal for a Rs 43 crore fee saying that this is the sum that the telecom regulator had recommended in 2005-06 for a pan-India telecom licence sans wireless spectrum. But Trai has been in favour of allowing ISPs to provide unfettered in-ternet telephony under their existing licences. At present, the maxi-mum amount that ISPs have to pay for an internet licence is Rs 20 lakh.

regards,
Bandhan Preet Singh

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