DEVELOPMENT OF INTERNET IN INDIA
  • 100% FDI allowed through automatic route to the ISP (without gateways), 74% in case of ISPs setting up International Gateways.
  • ISP's permitted to set up Submarine Cable Landing Stations either singly or jointly in collaboration with International Undersea Bandwidth Carriers.
  • National Long Distance Services opened to private sector on non-exclusive basis.
  • International Long Distance Services opened up to private sector on non-exclusive basis w.e.f. April 1, 2002
  • Implementation of IT Act, 2000.
  • Internet Telephony Services opened up to ISPs w.e.f. April 1, 2002.
  • De-licensing of W-LAN in 2.4 Ghz band using IEEE 802.11b technology
  • Reduction of Performance Bank Guarantee by 50% for Category A & B ISPs and 33% for Category C ISPs.
Since 1995, a number of countries have permitted VOIP as a technology option to the classical PSTN as well as Internet Telephony so as to provide a cheaper alternative to classical PSTN calls. In India, the ISPs were allowed to offer Internet Telephony Services with effect from April 1, 2002. With the choice availability of Toll Quality (PSTN) and Non-Toll Quality options, Internet Telephony has thrown open Long Distance Telephony to those sections of Society, which could not afford the same earlier.
Further, Internet Telephony is proving to be a key driver for local entrepreneurs to set up Community Information Centers / Cyber-kiosks / Internet Dhabas, etc even in small towns and villages. In fact it has made distance learning, Tele-medicine and e-governance etc a reality in Indian context.

More than 90 ISPs have been granted license for offering Internet Telephony Services. There has been a substantial growth in the Cyber Café / Cyber Dhabas offering Internet Telephony Services.

It is expected that Internet Telephony will provide fillip to the demand for network facilities including bandwidth, last mile access and other connectivity resources and bridging the digital divide within the Countr. However, an important issue needing immediate attention is tackling the Internet Telephony Grey Market which is estimated to be about 90 per cent of the total Internet Telephony market in India and requires concerted efforts by Government and industry. It is imperative that all leading ISPs including VSNL, BSNL and MTNL join hand to tackle the menace.
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