Domestic VoIP through ISPs proposed
27-06-2009
The government is proposing Rs 430 million as entry fee for allowing Internet Service Providers (ISPs) the right to offer
computer-to-phone and phone-to-computer services in India.
Customers could make cheaper calls from PCs or laptops to fixed line or mobile phones in India. They could also make a call to PCs from their mobile handsets.
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 regime 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 proposal will if implemented give ISPs a pan-India internet telephony licence for Rs 430 million. Those wanting to offer these services regionally will pay a lower fee.
DoT's earlier logic for demanding a Rs 16.51 billion 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 430 million 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 internet telephony under their existing licences. At present, the maximum amount that ISPs have to pay for an internet licence is Rs 2 million.
Plans to lift curbs on net telephony have met with stiff opposition from telecom operators whose dominance in the domestic market would be threatened by such a move. In February, DoT decided against lifting curbs on net telephony, drawing heavy flak from telecom regulator TRAI.
DoT also plans to impose revenue sharing at 6% on all ISPs from July 1. At present, ISPs that offer only internet services are exempt from levies while those offering internet telephony are subject to a 6% revenue share. Further, ISPs that pay Rs 430 million for a net telephony licence may be asked to share 9% of their annual revenues from the service with the government. But the new levies will only be imposed till the panel set up to come up with a uniform levy structure for all telecom services comes out with its recommendations, the DoT has said. The department will also seek Trai's approval before imposing these levies.
Based on Economic Times story
Customers could make cheaper calls from PCs or laptops to fixed line or mobile phones in India. They could also make a call to PCs from their mobile handsets.
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 regime 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 proposal will if implemented give ISPs a pan-India internet telephony licence for Rs 430 million. Those wanting to offer these services regionally will pay a lower fee.
DoT's earlier logic for demanding a Rs 16.51 billion 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 430 million 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 internet telephony under their existing licences. At present, the maximum amount that ISPs have to pay for an internet licence is Rs 2 million.
Plans to lift curbs on net telephony have met with stiff opposition from telecom operators whose dominance in the domestic market would be threatened by such a move. In February, DoT decided against lifting curbs on net telephony, drawing heavy flak from telecom regulator TRAI.
DoT also plans to impose revenue sharing at 6% on all ISPs from July 1. At present, ISPs that offer only internet services are exempt from levies while those offering internet telephony are subject to a 6% revenue share. Further, ISPs that pay Rs 430 million for a net telephony licence may be asked to share 9% of their annual revenues from the service with the government. But the new levies will only be imposed till the panel set up to come up with a uniform levy structure for all telecom services comes out with its recommendations, the DoT has said. The department will also seek Trai's approval before imposing these levies.
Based on Economic Times story
