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The government will soon make policy announcements that will completely unshackle the Internet services business and ensure a trouble-free beginning to aspiring Internet service providers from the private sector.

According to a recent gazette notification the government has almost done away with licence fees for Internet service providers and has permitted them to set up their own international gateways.

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It has allowed local tariff billing even for long-distance calls to Internet servers. It has authorised the Software Technology Parks of India Society and the National Informatics Centre to become direct access providers for international connectivity that the ISPs would need.

The government has cleared a proposal to levy a nominal Re 1 licence fee on ISPs. Earlier, it had decided that they would not have to pay any fee in the first five years of operation.

By allowing organisations like the Department of Electronics to set up their own gateways, the government has taken another step in breaking VSNL's monopoly over the international gateway access.

ISPs will be "allowed to provide such gateways after obtaining security clearances for which the interface for private Internet service providers shall only be with the Department of Telecommunications, which will set up a mechanism for obtaining security clearance from different security agencies", the gazette notice reads.

The decision to bill long-distance calls to Internet servers at local rates is also significant since only 40 cities and towns in the country have servers, or access nodes. "Internet access nodes will be opened by DoT and authorised Internet service providers at all district headquarters and local charging areas by January 26, 2000", the gazette said.

"As an interim measure, and till nodes are provided in all local charging areas, access to the nearest Internet access node will be on local call rates, progressively with effect from August 15, 1998. Internet service providers will be responsible for ensuring that this facility is not misused for telephone traffic," it adds.

Other measures decided upon by the Cabinet include:

• Halving of leased line rentals for basic, cellular and other value-added service.
• Allowing the setting up of call centres, or online customer service centres. DoT and basic telecom service providers would have to provide the bandwidth for this.
• Permitting of interconnectivity between government data networks and closed user groups.
• Allowing Internet access through cable TV media without additional licensing.
• Agreement in principle to set up high-tech habitats. Work is to first begin in Bangalore, Hyderabad, Pune, Delhi and Bhubaneswar.

- Compiled from the Indian media

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