DoT move may halt ISP operations

MUMBAI, MAY 11: Major internet service providers including the country's first private internet service provider ISP Satyam Infoway sta...

MUMBAI, MAY 11: Major internet service providers including the country8217;s first private internet service provider ISP Satyam Infoway stand the risk of not being allowed any new telephone connections thus effectively halting their internet plans if the Department of Telecommunications DoT does not relent on its recent order on phone access charges.

Going by the DoT circular, Satyam and others like Global and Wipro who were earlier e-mail operators, may have to pay an estimated Rs 9 crore in outstandings or lose their existing telephone connections.

The circular which was issued last week cancelled the Rs 15,000 access charge per telephone line for net operators. However, it clearly states that the order comes into effect only from May 1, 1999 8212; implying e-mail operators will have to pay their arrears on the access levies.

Thus, although future operators stand to benefit from the order and save a recurring expenditure of around Rs 7.5 crore annually, e-mail operators will have to pay Rs 15,000 on eachtelephone line with retrospective effect, which in some cases dates as far back as 1994.

Ironically, it was these operators who had taken the lead in getting the levy rolled back when DoT had re-issued the circular of March 1995 for e-mail operators in January 1999 with a statement that there was no decision not to levy this charge on E-mail/ISP operators.

quot;Satyam has already been badly hit,quot; said Amitabh Singhal of the Internet Service Providers Association of India ISPAI. According to Singhal, Satyam had to make do with its existing lines until the DoT took a decision on the issue, after the ISPAI made a representation to Telecom Regulatory Authority of India TRAI asking that the levy be withdrawn.

quot;We were the pioneers who were supposed to take the lead but we are stuck,quot; said Singhal who is from Global Electronic Commerce Services. The association has now made another representation to DoT asking for a clarification on its May 3, 1999, order.

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quot;We now understand that even though the order ofMay 3, 1999, supersedes the January 1999 circular and categorically withdraws the access levies, the notices to pay up the arrears from retrospective effect have not been specifically cancelled and the fate of the affected operators continues to be in the same precarious state,quot; it said in the representation.

The association has also approached TRAI to resolve the issue. The TRAI is expected to issue a directive to DoT on Tuesday asking for all pending notices and demands to be withdrawn. quot;The DoT will have to comply with the TRAI directive because all tariff related matters come under its purview according to the New Telecom Policy,quot; said Singhal, quot;We are optimistic the issue will be resolved. Going to court is the last option.quot;