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Telecom rules relaxed

The following are decisions announced by telecommunications minister Dayanidhi Maran on Thursday:

• National long-distance (NLD) entry fee down from Rs 100 crore to Rs 2.5 crore

• International long-distance (ILD) entry fee cut from Rs 25 crore to Rs 2.5 crore

• Annual licence fee for NLD operators down from 15 per cent to 6 per cent of annual gross revenue from January 1, 2006

• Net worth requirement to apply for NLD licences down from Rs 2,500 crore to Rs 2.5 crore

• Paid-up capital requirement reduced from Rs 250 crore to Rs 2.5 crore

• NLD operators can directly provide last-mile link to business/knowledge process outsourcing (BPO/KPO) industry

• ILD service providers can access the subscriber (BPO/ KPO) directly only for provision of leased circuits/closed user groups

• Net worth and paid-up capital of the applicant for ILD licence will be Rs 2.5 crore

• Access service provider can provide Internet telephony and Internet and broadband services. Can use the network of NLD/ILD licensee

• Existing IP-II/ IP-VPN (Like PowerGrid, RailTel, Gail) licensees will be allowed to migrate to NLD/ILD service licence

• ISP offering Internet telephony (restricted) to be charged licence fee at 6 per cent of annual gross revenue from January 1, 2006

• To offer VSAT service an annual licence fee to be charged at 6 per cent of annual gross revenue from January 2006.

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