The Indian government has finally put a timeframe on its plan to open up its ISP business to competition, breaking the monopoly held by state-run telco Videsh Sanchar Nigam Ltd and hopefully driving down prices. The government says it will issue licenses by November 7, this Saturday. The names of the licensees and the government’s new internet policy will be unveiled within 15 days, the prime minister A B Vajpayee said Sunday. The announcement has been expected for months, but has been held up by various events, including the recent appointment of Sushma Swaraj, India’s information and broadcasting and communications minister as the chief minister of Delhi (10/13/98), which diverted her from her duties and delayed the announcement, expected at the start of October. The Indian government announced in January its intention to open up the ISP market to an unlimited number of providers and waive license fees. The ISPs will pay no fees for the first five years and then just one rupee ($0.02) thereafter. They will be permitted foreign investment up to 49% of their total equity. At present, internet access costs around 90 cents an hour, but the hope is that it will come down to a flat rate of about $14 per month once the market has been opened up. Vajpayee, speaking at the opening of the Bangalore IT.com 98 five-day conference, also announced Vidya Vahini Network (VVNet), a linking of the intranets of various national and state government agencies. The first phase of VVNet will come online on August 15 1999.
