DoT directive to ISPs to cost $120 mn forex loss

Internet service providers are upset over a Department of Telecom directive asking them to stop providing Internet services to unregistered call centres and BPOs.

Internet service providers (ISPs) are upset over a Department of Telecom directive asking them to stop providing Internet services to unregistered call centres and BPOs. The industry says DoT issued the circular before completing the consultative process initiated by Telecom Regulatory Authority (Trai) with all stakeholders on this issue.

Under the National Telecom Policy, 1999, registration was required for other service providers (call centres/BPO) for using international private lease circuit. DoT has issued its directive in a bid to curb the illegal use of Internet telephony.

According to industry estimates, the DoT directive would affect more than 5,000 call centres earning $2,000 on average. Effectively, the order would translate into a forex loss of more than $120 million in a year, says Rajesh Chharia, president, Internet Service Providers Association of India.

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Speaking to The Indian Express, Chharia said, “While the government’s initiative to clamp down illegal use of Internet telephony is a step in the right direction, it should provide a time bound single-window service to all call centre and BPO operators. All unregistered call centres running voice operations should be allowed up to 90 days for filing registration applications with DoT. The department, in turn, must accept or reject registrations within 30 days. In the interim, status quo should be maintained and these call centres should be allowed to carry on their business as usual.”

Sam Chopra, President, Business Process Industry Association of India (BPIAI) said, “While Trai has not yet completed the consultative process on review of Internet services, DoT has sought to pre-empt TRAI’s recommendations by sending out this directive. We want all services riding on the Internet, including voice, to be made completely open and free of any licensing. We hope Trai will consider this in its final recommendation.”