The Hindu Business Line : DoT gets tough with Net service providers

Stern action
Termination notices issued to those who have not started services within stipulated timeframe
Move is in line with the department’s aim to bring large players into the sector
More than a 100 licence holders have not started offering services, despite taking licences five years back

Thomas K. Thomas

New Delhi, Aug. 21

In a bid to weed out non-serious players from the Internet sector, the Department of Telecom has issued termination notice to 51 entities which had taken the Internet Service Provider’s licence, but have not started services within the stipulated timeframe.

As per the ISP licence norms, operators are required to start service within two years of getting the licence. Termination notice will be sent to another 40 ISPs in the next few weeks.

The move is in line with DoT’s objective to bring large players in the Internet sector. The Government had initially set highly liberal entry norms for ISPs due to which 770 companies took a licence.

Non-starters

While only 275 ISPs have started services, 397 licence holders quit after the Government announced an exit policy. However, there are still more than a 100 licence holders who have not started offering services, despite taking licences five years back. Despite the large numbers, the growth of the Internet user base has been sluggish with the Government missing broadband targets for the last two years.

Sluggish growth

“While a large number of operators is good but there is no use if they don’t start service. Most ISPs in the country are not contributing to the growth of the Internet segment, and that is the reason the number of Internet users has not grown as we would have liked even after so many years. Our aim is to promote serious players in the sector who will help us achieve our national goals,” said a DoT official.

TRAI suggestions

Earlier, DoT had sought the telecom regulator’s views in making the Internet segment move to the next level of growth.

TRAI had suggested that the Government should do away with district-level ISP licence category, which in effect would mean that small operators would have to either migrate to a state-level category licence or shut shop. Supporting DoT’s view to ease out non-serious players from the sector, TRAI also suggested imposing an entry fee and annual licence fee to bring the ISPs on par with other telecom service providers.

While DoT is yet to announce its final policy for the Internet sector, the latest move to show cause non-performing ISPs is an indication of the Government’s intention to bring in tough measures for this sector.

According to sources, DoT could also stop issuing any more new ISP licences and give the large national telecom players the mandate to push Internet services in the country.

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