The Hindu Business Line : ISPs may have to pay entry fee for leased line services

THE Department of Telecom may impose an entry fee on Internet Service Providers (ISPs) for offering leased line services like virtual private network. The move is being thought of as a way to even out the playing field between ISPs and long distance service providers.

Though ISPs have been offering private leased line services for more than five years, the issue was raked up after the state-owned Bharat Sanchar Nigam Ltd refused to give infrastructure support to the Internet service providers. BSNL had blocked ISPs on the grounds that private leased line services was not part of the latter's licence.

The Internet Service Providers' Association of India, on the other hand, has pointed out that the TRAI regulation on accounting separation has specified that private network services were part of the ISP's licence. Virtual private network services are essentially used by corporates to connect their offices spread across the country.

The matter was taken up by the telecom regulator, which in turn referred it to DoT. The department has set up a committee to look into the dispute. A senior DoT official said that the department was in favour of allowing the ISPs to offer virtual private network services but issues pertaining to level playing field must be taken care of.

"Though there is no mention of services like virtual private network in the ISP licence, there is a view that since the Government has adopted a technology neutral stance in licensing, ISPs may be allowed to offer such services. ``However, such services change the scope of the ISP licence and could encroach upon the licences of other telecom service providers like long distance. This may disturb the level playing field in terms of the entry fee and licence fee and has to be addressed," DoT officials said.