11 November, 2005

STD calls at Local Rates !! -Deccan Herald

In a move aimed at giving a major push to telecom and Internet penetration in the country, the government on Thursday ushered in Internet telephony and also massively reduced the National Long Distance (NLD) and International Long Distance (ILD) entry fees from Rs 100 crore and Rs 25 crore respectively to an uniform rate of just Rs 2.5 crore. Also, the annual licence fee would be reduced from 15% to 6%.

Not only that, the current networth requirement for NLD licences, standing at Rs 2,500 crore along with a paid-up capital of Rs 250 crore, has also been reduced to just Rs 2.5 crore in order to promote competition and induction of new players and eventually lower tariffs.

So far, Internet telephony was not permitted in India. It has now been decided that Access service provider can provide Internet telephony, Internet services and Broadband services. If required, Access service provider can use the network of NLD/ILD service licensee.

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