DoT has postponed the processing of applications of at least 50 companies, which have sought either an internet service provider (ISP) licence or want to offer internet telephony services. This move is estimated to stall collective investments worth Rs 5.5 billion from various ISPs. A few existing ISPs have reportedly been using their networks to carry illegal ILD calls. According to DoT, the current licence conditions do not adequately address issues of rollout obligations, revenue share and service tax for international web-based companies offering net telephony services in the country.

Consequently, it intends to frame a more comprehensive policy.