Internet Service Provider (ISP) Policies

› Three categories of ISPs have been specified.

Category Service Area
Category "A" Whole of India
20 territorial Telecom Circles, four
Metro Districts- Delhi, Mumbai,
Category "B" Calcutta or Chennai and four major
Telephone Districts- Ahmedabad,
Bangalore, Hyderabad or Pune.
Any Secondary Switching Areas
Category "C"
(SSA) of DOT.

› The security deposit (PBG) has been fixed at Rs. 2

crores, Rs. 20 lakhs and Rs. 3 lakhs respectivelyÚ
› An applicant company may be granted any number of
licenses and there will be no limit of number of
licenses granted in a particular area.
› Private ISPs are permitted to setup their own
gateways. ISPs are allowed to set up international
gateways using satellite and submarine cable landing
stations.
› On 27th August 2007, government of India reduced
the foreign direct investment limit in internet services
to 74% from 100% earlier and introduced a 6%
revenue share clause
› 100% is also allowed, but in that case the ISP can not
set up an International Gateway.
› An annual licence fee @6% of Adjusted Gross Revenue
(AGR) subject to minimum of Rs.50,000/- (Rupees Fifty
Thousand Only) and Rs.10,000/- (Rupees Ten Thousand
Only) shall be charged for categoryA & B service areas
respectively per annum per licenced service area.

› It also introduced a higher entry fee of Rs 20 lakh for

category A (national-level) licence and Rs 10 lakh for
Category B (state-level) licence, against a flat fee of Re 1
earlier

› Existing Category C licence holders will either have to

migrate to Category B or shut shop.
› A Financial Bank Guarantee (FBG) of
Rs. Ten Lakh for Category A Service Area Licence
Rs. One Lakh for Category B Service Area Licence,
valid for one year, is to be provided before signing of
the licence agreement .Based on AGR, the amount of
FBG shall be reviewed annually by the Licensor.
› Under Simplified Exit policy , an ISP can surrender
the Licence without starting the service, by paying
surrender charges. The surrender charges would be
equivalent to 5% of the Performance Bank Guarantee
(PBG) amount.
 6rowth of Internet Subscribers Including
Broadband
Year Subscribers (in lakhs) 6rowth (%)

Mar-03 36
Mar-04 45 25
Mar-05 56.5 26
Mar-06 69.4 23
Mar-07 92.71 34
Mar-08 110.09 20
Mar-09 135.4 22
Jun-09 140.5 4
Sept-09 146.3 4
Dec-09 152.4 4.21
Mar-10 161.8 6.17

 
 
   

9ype As on Mar'10
DSL 48.98%
Cable Modem 4.39%
Leased Line 0.19%
Ethernet LAN 3.74%
Fibre 0.22%
Radio 6.88%
Dialup 35.32%
Others 0.27%
 
 
 
   


 
Ú

SL
Cable Modem
 Ú Leased Line
0 Ú
 Ethernet LAN
Fibre
Radio

ialup
Ú  Others
Ú
Ú0 Ú
 0Ú

Market Share of 5 major ISPs as on Mar '10 SNL

Market Share
ISP MTNL
(as on mar '10) Ú  Ú
0
BSNL 56.76 Ú

MTNL 14.29 harti

0Ú
Airtel LtdÚ
Ú
Bharti Airtel Ltd. 8.07
Reliance Reliance
CommnÚ
Commn. Infra. 7.56 InfraÚ LtdÚ
Ltd.
Hathway Cable Hathway
& Datacom Pvt. 1.94 Cable &

atacom
Ltd. PvtÚ LtdÚ
 Competitors in category A
Essel Shyam
BSNL CMC RP6 Infotech
Communications
Gateway Systems World Phone Internet
Sify Siti Cable Network
(India) Services
Hughes Escorts
VSNL Guj Info Petro Astro India Networks
Communications
Primus
Reliance Telecommunications ERNET India RailTel Corporation
India
Data Infosys GTL Jumpp India L&T Finance

HCL Infinet Primenet Global Tata Internet Services Tata Power Broadband
Reliance Engineering
Bharti Infotel Pacific Internet India In2Cable (India)
Associates
Swiftmail
BG Broad India Estel Communication Bharti Aquanet
Communications
Trak Online Net India Spectra Net Reach Network India i2i Enterprise
Tata Teleservices Gujarat Narmada Valley HCL Comnet Systems
Comsat Max
(Maharashtra) Fertilizers Corporation and Services
Harthway Cable
› BSNL Broadband - Internet Service Provider
BSNL Broadband is a broadband internet service
from state owned BSNL in India since 14th January,
2005.
› Bharti Airtel - Internet Service Provider
Bharti Airtel, formerly known as Bharti Tele-Ventures
Limited (BTVL) is among India's largest mobile
phone and Fixed Network operators. With more than
60 million subscriptions as of 13th February 2008.
› Sancharnet - Internet Service Provider
Sancharnet refers to the dial up Internet connection
provided by BSNL, government owned
communication service provider in India.
› Iqara Telecoms - Internet Service Provider
Iqara Telecoms India Pvt. Ltd. is a Broadband
internet service provider operating in India. Iqara also
operates in Brazil. Iqara provides broadband internet
access in over 13 cities in India and has a customer
base of over 100,000 residential and corporate
customers. Iqara is a part of the British Gas group.
Iqara provides broadband access over HFC (hybrid
fibre cable).
› Hathway Broadband - Internet Service Provider
Hathway Broadband Internet. Welcome to the world
of High-speed broadband Internet! Hathway
Broadband Internet, the first Cable ISP in India
VSNL - Internet Service Provider
Videsh Sanchar Nigam Limited (VSNL): VSNL is a
Government of India Enterprise. It provides dedicated
links to commercial and government sector. VSNL
recently announced Full Internet connectivity to six
different categories of users which include students,
professionals, noncommercial, commercial, Software
exporters / e-mail / Internet service providers.
Connectivity speeds range from 2400 bps dialup to
128 kbps leased line.
 Packages
›
ifferent service Provides have different
packagesÚ These packages are designed
keeping the user and their Internet usage in
mindÚ The packages range from
› limited usage to Unlimited usageÚ
› Pre paid charges to post paid chargesÚ
› undled packages with Free phone CallÚ
› Packages with Free Night surfingÚ
› Packages with pay as you SurfÚ