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ISPs will have to pay licence fees to offer email

Email service providers are being charged double rates because point-to-point connections, for instance, between Delhi and Bombay, are being billed at network rates.

DoT's argument is that such point-to-point connections are being used to route traffic within a network.

Another feature of the policy will be that ISP licensees who wish to offer value-added services will have to pay the applicable email licence fee although ISPs themselves are exempt from any licence fee for the first two years.

Email is a service which is a natural feature of the Internet. In fact, Internet subscribers can access web sites of several free email services such as Hotmail where they can register themselves and obtain an email address.

Users can send and receive mail free of cost while revenue comes from the companies who advertise on the site. The cost-free service attracts high traffic, which in turn attracts advertisers.

Indian email service providers are, in fact, apprehensive that ISPs would capture the market, since they would be able to offer email along with a package of other services.

One option for these companies would be to become ISPs since this does not involve any extra licence fee and almost all email service providers have announced plans to become ISPs.

The companies are, however, wondering if the licence fees paid to DoT for the last few years would be refunded. Otherwise, the companies have been pointing out, it would be unfair to them to allow competitors to enter the fray at no cost at all.

- Compiled from the Indian media

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