JOIN USRates for internet and broadband services are likely to go up under a new licence framework owing to a high entry fee proposed by the Department of Telecommunications (DoT).
DoT has proposed to charge Rs 15 crore as a one-time entry payment for a national level unified licence (UL) compared to Rs 30 lakh which companies now pay for the internet services.
Under the new licensing regime, DoT will allow internet telephony (VoIP- Voice over Internet Protocol) service, which will lead to low cost call service even in rural areas.
The VoIP is a widely accepted application. Foreign companies, which are not registered with DoT, are providing a voice calling service both between computer to computer and computer to landlines facilities.
“If internet service providers opt for the UL, then the cost of internet and broadband services will go up," said Rajesh Charia, President of Internet Service Provider Association of India.
However, the government has not done anything new as per the proposed format for the UL regime. It is going ahead with the option to continue the old licence format along with a new national level UL that will cost Rs 15 crore.
The DoT internal committee has recommended allowing internet service providers with wireless broadband spectrum (BWA) to provide VoIP using these airwaves.
In 2010, six private players, including Reliance Jio Infocom, Tikona Digital and Augere, had won BWA spectrum. But, the committee has left it to the authorities to decide if players who won BWA spectrum in 2010 should be asked to make an additional payment of Rs 1,658 crore which was charged from telecom players till 2008 for providing mobile telephony.
Though the licence issued to mobile telephony operators for Rs 1,658 crore included 4.4 Mhz spectrum, the government has said it will also provide spectrum along with the UL.