DoT gets notice on VPN licence

The Telecom Dispute Settlement and Appellate Tribunal (TDSAT) today directed the department of telecommunications to file a reply within two days to a plea challenging the government's move to amend the licence for providing virtual private network (VPN) services.

The petition was filed by internet service providers (ISPs). The tribunal has scheduled the next hearing on February 11. As per the new guidelines issued by the telecom department on January 16, ISPs will have to obtain new or amended licences to be able to offer virtual private network services.

The guidelines also said ISPs would not be permitted to provide private network services from February 16, without the new licence, while adding that the licence fee for ISPs offering this service was set at 10 crore in addition to a revenue share of 8 per cent.

The petition states that the telecom department had not sought the recommendations of the Telecom Regulatory Authority of India (Trai) before issuing its recent guidelines creating a new category of 'internet service providers with virtual private network licence'.

As per the Trai Act, the government should seek recommendations from the authority in respect to matters such as issuing new licences.

The petition also states that virtual private network services are allowed under the existing licence.