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This is an archive article published on January 2, 1998

Commission accepts proposal on ISPs

NEW DELHI, January 1: The Telecom Commission in a bid to further make internet services attractive has accepted the core group proposal to m...

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NEW DELHI, January 1: The Telecom Commission in a bid to further make internet services attractive has accepted the core group proposal to make the terms and conditions promotional and not to charge any licence fee from private operators for an enhanced five year period. The ISP licences are likely to be offered immediately on submission of applications from February, 1998 onwards. The Telecom Commission’s new year gift in the form of the eligibility document on internet is likely to be announced in the next few days. Three months after the cabinet approved the proposal to promote the entry of private ISPs, the six member core group set up in October, 1997, by the Telecom Commission has laid down the eligibility criteria, licence agreement , format of application and other technical, commercial and financial conditions. The report of the core group on licensing of internet services was considered and okayed by the commission at its meeting the other day.

It proposed that the free market conditions shall have a full play on ISPs.

The highlights of the proposal are: *No Licence Fee in the first five years.
* Application performa with licence conditions etc to priced at Rs 1000.
* Any company registered in India can apply.
* Foreign equity allowed up to 49 per cent.
* V-SAT, E-Mail, Basic and Value Added service providers can apply.
* E-Mail operators have to get separate licence to become ISPs.
* A non-refundable processing fee of Rs 5000 with each application.
* ISPs can fix their own tariff.
* No earnest money.
* No limit on licensees in a particular area.
* Service area to be categorised into three classes.
* V-SAT providers can give internet service only to corporates.
* Inter and intra connectivity between ISPs allowed.

The service area for operators will be categorised in three classes. In the first category are the territorial telecom circles and metro telephone districts like Delhi, Mumbai, Calcutta and Chennai.

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