The Hindu Business Line : Virtual pvt network services — ISPs seek review of entry, licence fee

THE Internet Service Providers Association of India (ISPAI) has written to the Ministry of Communication seeking a rollback of the decision to impose entry fee and licence fee on Internet operators. Terming the policy as `illegal', the ISPs have alleged that the DoT has taken the decision at the behest of Bharat Sanchar Nigam Ltd.

In a letter written on Tuesday to the Minister for Communication and IT, Mr Dayanidhi Maran, the ISPAI said, "In the guise of extending VPN service it is not permissible to charge annual licence fee or seek for one time non-refundable entry fee. If the same is sought to be done, it amounts to changing the terms of licence unilaterally to the disadvantage of the licensees, that too without an opportunity of being duly heard."

DoT had imposed a an entry fee ranging between Rs 1 crore and Rs 10 crore on ISPs apart from a licence fee of 8 per cent of the annual revenues. In return, it allowed them to offer leased line based Virtual Private Network (VPN) services as part of the licence.

The department had justified the fee on grounds of levelling the playing field with long distance operators who are paying a licence fee of 15 per cent of their annual revenue. On the other hand, ISPs were offering VPN services without any entry fee or licence fee.

However, the association said that the DoT did not follow the due process and did not consult the industry or the telecom regulator before announcing the policy.

"Licensees have been providing various Internet services including VPN services which is part of Internet service, since 1999. As a matter of fact, the tariff for VPN services have been reported to TRAI since 1999 under the extant regulations and orders without any hindrance or objection of whatsoever nature from any authority including TRAI as it forms part of the ISP licence service," the ISPAI said in the letter.

"The impact of the press release is clearly intended to create entry barrier for the ISPs to provide VPN service and create monopolistic situation for BSNL at whose behest the present press release has been issued. This is clearly adverse to the interest of the consumers who are receiving quality service at affordable costs," it said.