Sheesh, regulators

Mailman List Mirror (Read Only)
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http://www.thehindubusinessline.com/2004/09/11/stories/2004091102660400.htm

ISPs may be stopped from offering private leased line services

Thomas K. Thomas
New Delhi , Sept. 10

INTERNET Service Providers (ISPs) are in for a major setback with the Telecom Regulatory Authority of India (TRAI) proposing to restrict them from offering private leased line services.

While the telecom regulator is considering to ask the state-owned Bharat Sanchar Nigam Ltd (BSNL) to resume provision of leased line resources to ISPs, the latter may be allowed to use it only for providing Internet-based services.

This will come as a big blow to Internet operators who get a significant part of their revenue from corporate leased line services like virtual private network (VPN).

The fight between BSNL and ISPs over the issue has been hanging fire for the last few months. The high point came when BSNL stopped offering leased line services to ISPs on grounds that they were misusing the infrastructure to offer services that were beyond the scope of their licence.

BSNL had argued that ISPs, who do not pay any entry fee or licence fee, should not be allowed to offer corporate leased line service as it was infringing on the turf of long distance operators. Companies such as Sify, HCL Infinet and Tata Internet had made representation to the regulator against the stance taken by BSNL.

The telecom regulator has taken a position favouring BSNL by saying that the public sector company was justified in its demand, as ISPs were not eligible to provide services such as VPN.

This service is used by large corporates to network all their branch offices spread across the country.

However, a TRAI report on the issue said that BSNL was fair in demanding that ISPs can use the leased lines only for Internet purpose and not resell it, because they were not entitled to do the business of reselling bandwidth leased from other telecom service providers.

The telecom regulator has also sought the views of the Department of Telecom (DoT) on the issue and would give its final directive in the next few weeks. DoT officials said that the department was looking at allowing ISPs to offer VPN services but only after paying an entry fee to level the playing field with long distance players.

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http://www.thehindubusinessline.com/2004/09/11/stories/2004091102660400.htm
ISPs may be stopped from offering private leased line services

[...]

The telecom regulator has also sought the views of the Department of
Telecom (DoT) on the issue and would give its final directive in the
next few weeks. DoT officials said that the department was looking at
allowing ISPs to offer VPN services but only after paying an entry fee
to level the playing field with long distance players.

The TRAI (indian telecom regulator) seems to be making a (belated)
protest about the DoT (department of telecom, govt of India)'s attempt
to tax VPNs, effectively creating a new type of ISP - "ISP offering
VPN services"

TRAI wants to be heard on licence fees for ISPs

Thomas K. Thomas

New Delhi , Dec. 9

IN what could become the next big controversy in communications
sector, the Telecom Regulatory Authority of India (TRAI) has asked the
Department of Telecom (DoT) to seek its recommendations on the policy
decision to impose entry fee and licence fee on Internet Service
Providers. This is the first time that the telecom regulator has made
such a request after the DoT has already announced its decision.

In a letter written to Mr Nripendra Misra, Secretary, DoT, the telecom
regulator has said that the Government should have in the first place
sought the views of TRAI since it involved creation of a new category
of licence called ISPs with Virtual Private Network.

"Since TRAI's recommendations are required for issuing the terms of a
licence, it is logical that they should also be obtained at the time
of modification of a licence earlier granted. I would request you to
refer the issue to TRAI for opinion before finalising the Government
decision in this matter," said the letter by its Chairman, Mr Pradip
Baijal.

The telecom regulator has said that the ISP with VPN licence is a new
licence for the service provider, especially since this will be
distinct from the current ISP licence. The DoT had announced its
decision last month to impose a licence fee of 8 per cent of the
annual revenues on ISPs apart from an entry fee ranging between Rs 1
crore and Rs 10 crore. The department had not taken the
recommendations of the telecom regulator before announcing the
decision, which irked not only the TRAI but also the ISPs. DoT on its
part said that it was not required to seek the telecom regulator's
recommendations, since it was a decision which sought to expand the
scope of the existing ISP licence. TRAI had earlier sent a letter to
DoT suggesting an entry fee of Rs 25 lakh.

Meanwhile, the ISPs are chalking out their strategy to challenge the
DoT decision which includes legal recourse. "We will await the final
guidelines of the policy from DoT before finalising our next move,"
said Mr Amitabh Singhal, President, Internet Service Providers
Association.