TRAI issues consultation paper to review the decision to impose entry and licence fees on VPN services

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TRAI issues consultation paper to review the decision to impose entry and licence fees on VPN services

July 15, 2005

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TRAI has issued a consultation paper to review the decision to impose entry and licence fees on virtual private network (VPN) services. DoT had earlier announced an entry fee ranging from Rs 10 million to Rs 100 million and a licence fee of 8 per cent of the annual revenues. ISPs criticised this move on the grounds that no consultation process had taken place and filed a petition before the Telecom Disputes Settlement Appellate Tribunal (TDSAT).

The ISPs had been providing VPN services to their leased line customers for a number of years before DoT's announcement.

TRAI's consultation paper stems from its concern that the licence fee costs may be passed on to customers.