According to a Sunday disclosure by the Internet Service Provider Association of India's (ISPAI), the rates of Internet and broadband services in India may likely undergo an increase under new licenses framework because of the high entry fee which the Department of Telecommunications (DoT) has proposed.

The possible hike in Internet rates will result from the fact that the DoT has put forth a proposal for charging a one-time entry fee of Rs 15 crore for a national level Unified Licence (UL). The proposed fee will be comparatively much higher than the Rs 30 lakh amount which is currently paid by companies for Internet services.

Under the new licensing framework proposed by the DoT, there will be provision for Internet telephony (VoIP- Voice over Internet Protocol) service; which implies that the call service costs will be low even in rural areas where the rate of illiteracy is very high.

Meanwhile, noting that the DoT's proposed format for the UL regime does not underscore any new move by the government, which will continue with the option of old licence format along with a new national level UL costing Rs 15 crore, ISPAI President Rajesh Charia said: "If Internet service providers opt for the UL, then the cost of internet and broadband services will go up."