DoT is likely to adjust the excess licence fee paid by internet service providers (ISPs) offering virtual private network (VPN) services. The issue dates back to December 2004 when DoT allowed ISPs to offer internet protocol (IP)-VPN services after paying a licence fee of 8 per cent of adjusted gross revenue (AGR) and Rs 100 million, Rs 20 million and Rs 10 million as entry fee for Category A, B and C circles respectively. This order was challenged by the Internet Service Providers Association of India in the Telecom Disputes Settlement and Appellate Tribunal on the grounds that VPN services were part of the existing internet licence. The tribunal, in 2005, stated that the Telecom Regulatory Authority of India (TRAI) should decide on the matter and in case, after final determination, ISPs are entitled to a refund, it should be adjusted against the dues payable by them. TRAI, in its recommendations, stated that ISPs should pay an entry fee of Rs 3 million and no licence fee for offering VPN services.