January 15, 2002

    Guidelines have been issued for grant of licence for International Long Distance (ILD) Service and are available at website www.dotindia.com. The applications will be received from 25.1.2002. Earlier, the draft licence agreement was put on the website for inviting suggestions from the various stakeholders. Various suggestions were received and after considering these suggestions, the guidelines have been finalised after receipt of various suggestions on the draft Licence Agreement for International Long Distance Service. With the opening of this sector, it is expected that the customer will enjoy the reduction in tariff for ILD service also.

The salient features of the guidelines are as follows:

• Unrestricted entry
• Foreign equity cap – 49%
• Networth of the applicant company – Rs. 25 crore
• Roll out obligations in terms of setting up of Points of Presence (POP)
• Licence fee – 15% of the Adjusted Gross Revenue inclusive of USO
• Entry fee – Rs. 25 crore
• Access provider can be allowed to interconnect with the ILDO protocol in circumstances where ILD gateways switches and that of Access Providers (GMSC/Transit Switch) are located at the same station of Level-l TAX.
• Quality of Service less than toll quality permitted with lower tariff.