Even before the Telecom Regulatory Authority of India (Trai) has taken its first steps towards allowing connectivity between PCs and phones, telecom operators and Internet service providers (ISPs) are locking horns over the issue.

In separate communications to the regulator, Bharti Airtel and Reliance Communications have stated that if voice over Internet protocol?or, VoIP, which basically means using the Internet for telephone calls?is allowed, ISPs should be asked to migrate to the unified access service licence (UASL) regime.

State-owned Bharat Sanchar Nigam Ltd (BSNL) has gone even further to state that PC-to-phone calls should be disallowed, as it would destroy the national long-distance structure.

At stake is the wide difference in licence fees paid by telecom service providers and ISPs. The former pays Rs 1,650 crore for a pan-India licence fee, while ISPs pay a token fee of Re 1. Currently, Internet telephony is allowed but only from PC to PC, for which ISPs pay 6% of their adjusted gross revenue.

Resolving the issue would be a tough task for Trai, as the Rs 1,650 crore fee also incorporates a start-up spectrum charge. If ISPs are asked to apply for a UASL, they would not need this spectrum.

Raising the issue of a level playing field, the country?s largest mobile operator, Bharti, said, ?Since UASL holders are also subject to high level of duties and levies? and have to comply with stringent terms and conditions regarding quality of service, security monitoring conditions, rollout obligations, etc., ISPs should also be brought under a similar net.? The Anil Ambani-led RComm echoed that view.

However, refuting that argument, the Internet Service Providers? Association of India counters by stating that ?ISPs basically re-sell services provided by UASL and long-distance operators? and are dependent on them for most resources for which they pay.

The association points out that more than 85% of ISP revenues go back to service providers, primarily state-owned incumbents. It said the government has already imposed a 6% licence fee on Internet telephony and hence there would be no revenue loss to the government. Telecom operators will also get termination charges so there will be a win-win situation for both.

Opposing VoIP, BSNL has further written that allowing ISPs connectivity between PCs and fixed line as well as mobile phones would jeopardise NLD licence holders who get a carriage charge on calls for carrying long-distance calls of other operators who don?t have a licence.