Internet subscribers in the country climbed to 3.5 million in March 2003 from 3.2 million in the corresponding period in 2002. The increase in the subscriber base is despite the fact that of the 587 licences issued, only 205 Internet service providers (ISP) are in operation.
According to the data released by the department of telecommunications, 199 ISP licences had been surrendered between 1999 and 2003. This came after the government relaxed the exit route for those companies that had taken a licence but did not want to start operations.
According to the exit policy announced in 2000, an ISP licence holder can surrender the license after depositing 5 per cent of his bank guarantee.
As per the licence condition, the ISP licence holders are required to submit a performance bank guarantee of Rs 2 crore, Rs 20 lakh, Rs 3 lakh for categories A, B and C, respectively.