TRAI is reportedly against DoT’s suggestion that internet service providers (ISPs) pay a higher entry fee at par with telecom operators in order to allow them to offer unrestricted internet telephony services.

TRAI is reportedly against DoT’s suggestion that internet service providers (ISPs) pay a higher entry fee at par with telecom operators in order to allow them to offer unrestricted internet telephony services. The regulator has pointed out that entry fee for telecom operators includes charges for spectrum, while ISPs’ licences do not entitle them to radio frequencies. TRAI has also stated that restrictions on internet telephony will encourage grey market operations and that web-based internet telephony services are provided by agencies located outside India such as Skype, Google, Yahoo! and MSN, which neither have a licence from DoT nor pay any revenue share to the government. DoT has countered the argument by pointing out that there would not be a level playing field betweentelecom companies and ISPs if the latter were allowed to offer internet telephony services without paying an equivalent fee.