France Telecom applies for ISP licence

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Department of Telecom (DoT) has approved France Telecom (FT), owner of the Orange business services, for applying for an Internet Service Provider’s Licence (ISP). FT had applied for an ISP licence in order to unify its Indian processes under a single licence.

Although FT’s telecom operations in India are handled by Global One, it aims at giving up its Global One licence and centralise its processes under Equant Network Services, a joint venture between Emergy Technologies and and France Telecom. It presently holds 74 percent stakes in Equant Network Services. The company is also planning to surrender an ISP approval application it had filed under Global One.

Equant Network Services presently offers services like Internet Protocol Virtual Private Network, Multi Protocol label Switching and network management for other companies in India.�

Currently, five international telecom companies, AT&T, Verizon, British Telecom, Cable & Wireless and France Telecom provide NLD and ILD services in India. These foreign companies along with Indian telecom firms generate a business of Rs 10,000 crore every month.

With a poor broadband penetration and slow growth in number of broadband subscribers, the Indian market is being adversely affected. Persistent delay in 3G and WIMAX services in the country has also hampered DoT’s dream of 50 million broadband subscribers by the end of 2010. The entry of new ISPs at this juncture can boost the growth and development of Indian Web services.

Although FT still has a lot of ground to cover in terms of infrastructure and regulatory issues, an ISP licence to the French company will mean a healthy competition and catalysed growth in broadband services in the country.