The Hindu Business Line : DoT puts on hold 50 ISP applications

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Networks of some ISPs used for illegal ILD calls
Vigilance Dept investigating matter
Security concerns top priority: DoT officials

New Delhi , Nov 14

The Department of Telecom (DoT) has put on hold applications of at least 50 companies either seeking to take an ISP licence or provide Internet telephony services, on the grounds that the networks of a few existing ISPs were used for carrying illegal international long-distance calls.

Most of these applications have been submitted six months ago.

DoT officials said that new licences may not be issued until the Vigilance Department completes its investigation and punishes the offending companies.

But ISPs are crying foul over the fact that the DoT is holding up applications even from companies that have a clean record.

"It has come to our notice that the Department has kept pending, for months, issue of any new licences for ISPs as well as provisioning of Internet telephony by existing ISPs," said a letter from the Internet Service Providers Association of India (ISPAI) to the DoT.

"A number of potential investors and applicants, including those with FDI proposals, are awaiting licence.

"This delay, if allowed to carry on, will result in investment moving to other countries, thereby directly affecting growth of Internet and broadband in India."

Mr Amitabh Singhal, former President of ISPAI, said: "Most of the companies whose applications have been put on hold unfairly are afraid to come out in the open because they fear a counter-action from the DoT.

"The Government is being unfair to the ISPs. We have no problem if they want to take action against those companies which have a case against them, but why hold up applications of everyone?"

DoT officials, however, said that with security concerns getting top priority, the Government has to ensure that all loopholes are plugged in the licence conditions to prevent illegal telephone calls through an ISP's network.

The Department is likely to make amendments in the ISP licence terms in this regard.

Mr Rajat Charria, President of ISPAI, said that it was unfair to punish the ISPs for an activity that is being carried out by grey market operators.

"The DoT has not taken action against long-distance telephone operators whose network is being used by grey market operators. Why take the ISPs to task a for a similar issue?"