The Hindu Business Line : DoT to clear all pending applications for ISP licence within a month

Consumers can expect cheaper Internet services with the Department of Telecom (DoT) all set to clear all pending applications from companies seeking Internet Service Providers' licence with Internet telephony services in the country over the next month. Senior DoT officials said that the applications are being processed and deserving companies will be given their licenses by December.

About 50 applications are pending with DoT for the last 6-8 months. Broadband and Internet user base have been witnessing sluggish growth over the past year. Despite the Government allowing operators to offer Internet telephony within the country, there have been no takers so far.

Illegal Calls

Once the proposals are cleared, it will result in more competition in the broadband and Internet segment, which could bring cheaper services to the consumer. The applications had been put on hold after it was found that some of the existing ISPs network were being used for carrying illegal international long distance calls. Internet Service Providers had been protesting over the fact that the DoT was holding up applications even from companies who have a clean record.

Internet Service Providers Association of India (ISPAI) had written a letter to DoT saying that a number of potential investors and applicants including those with FDI proposals are awaiting licence.

Grey Market

"This delay, if allowed to carry on, will result in investment moving into other countries, thereby directly affecting growth of Internet including broadband in India," ISPAI had said.

ISPs said that the move to single out ISPs was unfair since licences have been issued to large telecom operators whose networks were used for carrying grey market ILD calls.