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Basic telecom operators have criticised a recommendation of the Prime Minister's Task Force on Information Technology that Internet service providers be allowed to set up last mile links without payment of licence fees.

The recommendation has already been accepted and implemented by the government.

T O D A Y

• Last mile jostling • 'Portable' numbers • ESOP regulation • Is 'training' 'services'?

The operators want the task force to suggest removal of all licence fees. The criticism and suggestions were voiced at a recent meeting between the Association of Basic Telecom Operators and the IT Task Force.

Last mile links connect a telephone or Internet subscriber to the telecom or ISP network. It could be a wire running into the subscriber's premises or a wireless connection.

Some ISPs plan to use links like the cable television network to provide Internet services.

One of the concerns of the basic telephony operators is that since there is no foolproof method to prevent voice being carried on ISP networks, many ISPs would start offering services like voice over the Internet protocol. This could severely damage business prospects of the basic telecom operators.

According to a representation by Association of Basic Telecom Operators, "basic telecom operators have paid enormous amounts in licence fees to secure the rights to lay telecom services in the local loop, within defined telecom circles. To secure this right, the operators have paid Rs 800 crore (Rs 8 billion) to the government in the first year alone. They will be paying a total of Rs 27,000 crore (Rs 270 billion) over the next 15 years."

It continues: "Each operator has prepared a business plan based on certain assurances of the Department of Telecommunications' tender documents for basic telecom services. Among them are:

• Maintenance of the duopoly structure in telecom circles with the DoT and private basic operators as the main service providers;
• Payment of licence fee to secure operators the right to provide telecommunications links within the telecom circle."

However, the task force recommendations are contrary to these assurances, the Association of Basic Telecom Operators claims.

Earlier:
The October Revolution
The final ISP guidelines are slated for an October 2 announcement. Then there will be nothing to hold back the Internet horses.

- Compiled from the Indian media

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