Industry body Internet Service Provider Association of India (ISPAI) said that rates of Internet and broadband services may go up under the new licence framework due to high entry fee proposed by the Department of Telecommunications (DoT).
DoT has proposed to charge one-time entry fee of Rs 15 crore for a national level unified licence (UL) compared with Rs 30 lakh which companies pay for Internet services at present.
“DoT has not done anything new as per the proposed format for unified licence regime. They are going ahead with the option to continue the old licence format along with a new national level unified licence that will cost Rs 15 crore.
“If Internet service providers opt for UL, then cost of Internet and broadband services will go up,” ISPAI’s President Rajesh Charia told PTI.
In the new licensing regime, DoT should allow Internet telephony which would lead to low-cost call service that would benefit even rural areas of the country where illiteracy is very high.