DoT has placed on hold the applications of at least 25 companies wanting internet service provider (ISP) and internet telephony licences on the grounds that the firms’ networks were being used to make illegal ILD calls. The companies whose applications have been put on hold include Sify, DSL Internet and Spectranet.

While 18 applications are for offering internet telephony, 10 are for a basic ISP licence. According to DoT, though the companies themselves may not be involved illegally, their network was being used by grey market operators. Hence, DoT has proposed dealing with the vigilance reports and criminal aspects of violation of the Indian Telegraph Act and the Indian Penal Code separately. This may enable the companies to still get a fresh ISP licence.