The department of telecommunications (DoT) has overruled a suggestion by the department of electronics (DoE) to allow domestic Internet service providers (ISPs) direct connectivity to the Net. Domestic providers will be allowed access to the Net only though Videsh Sanchar Nigam Ltd (VSNL) gateways, according to the draft Internet policy prepared by DoT.

There will be no ceiling on the number of ISPs which will be licensed to operate all over the country. The policy has decided to refer the issue of setting tariffs for Internet services to the Telecom Regulatory Authority of India (TRAI). The regulator has tariff-setting powers for all telecom services in the country.

The draft does not mention the license fees to be paid by ISPs, although sources in the industry expect the fee to be fixed at around Rs 30 lakh a year.

Other important features of the governments draft Internet policy include a proposal to allow subscribers to VSNLs Internet service long-distance toll-free access to the Net. The decision to allow toll-free access to the Net will mean that subscribers in cities or towns which do not have DoT or VSNL nodes can log onto the World Wide Web at nominal call rates.

The draft policy will be discussed at the next meeting of the nine-member telecom commission, telecom secretary A V Gokak had told newspersons earlier this week. The meeting has not yet been scheduled.

In putting together the draft policy, DoT has set aside the DoE suggestion that ISPs should be allowed direct access to the Net. Companies which have filed applications with DoT to be ISPs in the country have expressed dismay at this development. Routing our Internet traffic through VSNL will mean that all problems with its service will be duplicated on our service. How can we promise quality service then? a top executive of a data network company asked.

DoT officials defended the decision saying that if ISPs are allowed to lease lines, monitoring the traffic going out of the country will become very difficult. They could even relay voice traffic. Besides, under our offer to the WTO VSNL has a monopoly over all international services till 2004, a senior official said.

Long-distance toll-free access to VSNLs Internet service at nominal rates will give a fillip to the Nets spread in the country.

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First Published: May 22 1997 | 12:00 AM IST

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