In a jolt to Internet service providers, telecom tribunal TDSAT on Tuesday upheld the government decision that virtual private network offered by them was not part of their ISP licence while asking the Department of Telecom to seek Telecom Regulatory Authority's recommendations on the same to take a final decision.
"As rightly contended by DoT, VPN was not allowed as part of ISP licence. Therefore it becomes a separate service. The quantum of entry fee and revenue share to be charged for a separate service would require recommendations of TRAI," D P Wadhwa, chairperson, TDSAT, said while pronouncing the order.
TDSAT, however, has not stayed the current guidelines of DoT where a Rs 10 crore (Rs 100 million) entry fee and revenue share has been fixed for this interim period of four months during which TRAI recommendations will have to be out.
ISPs are entitled to refund of excess entry and licence fee paid along with interest depending upon final determinations.
"Once the matter goes to TRAI, a proper procedure will have to be followed by issuance of consultation paper, hearing of the parties. We believe the four-month period will be enough for government to take a final decision on the matter. Till then the impunged guidelines (of December 16, 2004) and directive (of January 17, 2005) will have to be treated as ad-hoc and will remain in operation.
"ISP licensees who wish to provide VPN services may do so in terms of the guidelines only after paying the requisite entry fee and would pay annual licence fee subject to adjustments later in accordance with the final determination of entry and licence fee by the government," he said.
