Internet service providers have proposed to pay a licence fee of an annual 5 per cent towards the universal services obligation to be permitted to offer unrestricted Internet telephony. As of now, ISPs are barred from offering such services within the country.

In its representation to the Telecom Regulatory Authority of India, the Internet Service Providers Association of India said: "Restricting Internet telephony is against the national policy. Considering the urgency of increasing our service penetration, ISPs can consider contributing towards USO, not exceeding 5 per cent of the annual gross revenue from unrestricted Internet telephony."

The universal services obligation has been stipulated by the government to fund unviable telephone connections in rural areas.

The ISPAI also said there was ample scope for a reduction in basic telephone operators' dial-up charges.

According to industry estimates, Net access providers in the country rake in about Rs 48 crore (Rs 480 million) a month through termination charges.

However, basic operators say they have already reduced night-time dial-up charges 50 per cent.

Internet service providers have also asked the government to de-licence the usage of Wi-Fi and Bluetooth in the 2.4-2.4835 GHz band for outdoor usage.

Currently, the government has allowed the two wireless standards to be used only within a campus or a building.

Outdoor usage of these standards will enable ISPs to offer Net services even when a subscriber is on the move.

To make spectrum utilisation more effective, ISPAI has urged the government to allow operators to lease out unused spectrum.