ILD, NLD Licenses Simplified

The entry fee for new NLD license has been reduced from Rs 100
crore to Rs 2.5 crore. Entry fee for ILD licenses has been reduced from Rs 25
crore to Rs 2.5 crore. The annual license fee for these is to be
reduced from 15% to a level of 6% of AGR. Annual license fee for commercial
VSATs will be charged at 6% of AGR. These come into effect from January 1, 2006.
And, with immediate effect, there shall be no mandatory rollout obligations for
NLD and ILD licenses.

NLD service providers can now access the subscribers directly
for provision of last-mile connectivity, and ILD service providers can compete
with NLD operators for providing leased circuits and CUG services.Prior
experience in telecom sector will not be a prerequisite for being granted
telecom service licenses. Access service provider can now provide Internet
telephony and broadband services.

ISP with Internet telephony (restricted) will be charged license
fee at 6% of AGR. The category of IP-II and IP-VPN licenses is being done away
with. These licensees will be allowed to migrate to NLD/ILD license. However,
Access providers can offer broadband services, including triple
play. However, they cannot provide content services on a managed network
(virtual/real) not derived from Internet. IP-II licensees, not interested in
migrating to NLD/ILD, shall not be permitted to provide national/international
bandwidth to individual subscribers. They would also not be permitted to carry
voice traffic over VPN network. On migration to NLD/ILD license, entry fee or
dues will be adjusted or charged or refunded as per TDSAT order.