A task force on Internet policy and eligibility criteria, chaired by former Telecom Commission member D N Nanda, has recommended a three-tier eligibility structure for Internet service providers (ISPs) with separate sets of criteria for applicants seeking international connectivity, national connectivity and single point of presence (PoP), respectively. The task force, constituted by the Federation of Indian Chambers of Commerce & Industry (Ficci), favours selection on the basis of technical and financial capability for national and regional operators to avoid entry of non-serious players as witnessed in radio trunking services. However, it has recommended free entry for single PoP operations.
Our Besides experts in information technology, the task-force comprises representatives of the government, private sector, E-mail providers, basic telecom services, cable operators and V-SAT Industry Association.
The Internet policy unveiled by the government lays down that a private Indian company can become an ISP if it furnishes a bank guarantee for the prescribed amount and if its foreign equity component does not exceed 49 per cent.
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However, the task force set up to make specific suggestions to the government to help the country avail the full benefits of the liberalised information system regime feels that some benchmarks to evaluate the technical and financial capability of applicants should be incorporated in the selection criteria.
All agencies holding licences to provide basic and value-added telecom services, and cable operators should automatically be allowed to provide Internet services without further financial implications, says the report of the task-force, which has already been sent to Telecom Commission chairman A V Gokak and department of electronics (DoE) secretary Shyamal Ghosh.
The report says that companies in the information technology business hardware as well as software should be considered for national/regional ISP licences.
Among the benchmarks, the report has recommended a minimum annual turnover of Rs 5 crore for computer companies and two-years experience for foreign companies in the operation of Internet services.
The report says the government may prescribe a performance bond bank guarantee of Rs 1 crore for ISPs seeking international connectivity and Rs 25 lakh for those willing to confine themselves to national boundaries. The performance of the company should be evaluated every six months and the guarantee should be discharged as soon as the performance falls below satisfactory levels.
The licence, says the task-force, should include performance indicators in terms of geographic coverage of the network and technical quality of the service. There may not be any need to specify these indicators for single PoP, who are mostly expected to be franchisees of national/regional ISPs, it says.
The report says all applicants should be asked to list the infrastructure required by them from the department of telecommunications (DoT), Videsh Sanchar Nigam Ltd (VSNL) and Mahanagar Telephone Nigam Ltd (MTNL). The time-frame for making it available and its quality should be assured at the time of giving the licence. The tariff for these facilities (national and international leased circuits and ports) should be based on promotional whole-sale rates. The tariff should be notified before seeking applications, it adds.