DoT set to adjust excess fees for VPN service

The government is likely to adjust the excess licence fee for Internet Service Providers, who are offering the lucrative high-end data service, Virtual Private Network.

A DoT official said the department is following a TDSAT order of 2005 which said in case ISPs were entitled to refund after final determination, it should be adjusted against further dues,

Due to reduction in the applicable licence fee from eight to six per cent of adjusted gross revenue (AGR) and adjustment of entry fee of Rs 2.5 crore against already paid entry fee of Rs 10 crore, Rs 2 crore and Rs 1 crore for category A, B and C ISPs for getting VPN permission, their licence fee dues are to be adjusted, said an internal note.

According to the note, the Department of Telecom on December 16, 2004 issued guidelines allowing ISPs to offer IP-VPN services after paying a licence fee of eight per cent of AGR and Rs 10 crore, 2 crore and 1 crore entry fee for category A, B and C circles respectively.

This order was challenged by the ISP Association in sectoral tribunal Telecom Dispute Settelement Appellate Tribunal (TDSAT).

TDSAT in 2005 said regulator TRAI should decide on the matter and in case after final determination, ISPs are entitled to refund, it should be adjusted against further dues to be paid by them.