Deepak Jain [16/11/04 18:15 -0500]:

I guess it depends on how you define a VPN over just a private network. Is an SSH tunnel a VPN? What about an encrypting SOCKS proxy?

This "tax" is aimed at a few Indian ISPs that are making lots of money selling managed IP-VPN services.. the incumbent telco seems to think all the money going there would be better spent by companies if they bought copper / fiber from it, and so the DoT (http://www.dot.gov.in) - lots of telco types there who wouldn't know a vpn from a hole in the ground - decided to "level the playing field" Just for laughs, here's the DoT press release on this: srs http://www.dot.gov.in/pressnote10nov04ISP.doc 142/04 www.pib.nic.in PRESS INFORMATION BUREAU GOVERNMENT OF INDIA ****** ISP LICENSING CONDITIONS AMENDED TO PERMIT VPN SERVICES New Delhi, Kartika 19, 1926 November 10, 2004 The Department of Telecommunications today decided to extend the scope of the Licence conditions of Internet Service Providers (ISP) ,thereby allowing them to provide managed Virtual Private Network services to corporates and individuals. In accordance with the decision, the ISP licences (both -Licence without Internet Telephony and with Internet Telephony) will have an enabling provision for VPN services by ISPs under specified terms & conditions. The annual licence fee will be at 8% of the Gross Revenue generated under the licence. There will be one time non-refundable entry fee of Rs. 10, 2 and 1 crore for Category A, B , and C ISPs respectively ISP-with VPN licencee will be permitted to lay optical fibre cable or use radio links for provision of the services under their licence in its Service Area. Further, ISPs shall be free to enter into mutually agreed commercial agreement with infrastructure service providers for sharing of infrastructure. The ISPs shall not engage in reselling bandwidth directly or indirectly. The above decision will help as many 388 ISP Licensees, more particularly 61 all India (Category A) ISP Licensees, to offer VPN services to their customers, thus adding to their revenue stream from Internet Access Services. VPN is a service where a customer perceives to have been provided with a private network which actually is configured over a shared public network. Benefits of VPN include secure communication over public network and guaranteed quality of service. A High Level DoT Committee had examined the matter and had observed that while on one hand such VPN services were not under the scope of the present ISP licences, on the other hand it would be desirable to permit ISPs to provide such services in the present day liberalized telecom environment in the country. The services which are technologically possible should be allowed while at the same time ensuring level playing field to all the service providers. Such VPN services which provide a platform for utilization of bandwidth in a very cost effective and efficient manner are emerging services internationally. This facility is necessary for the corporate world in meeting their growing communication needs of inter-office connectivity to send/transfer data securely and such services are widely available in telecom sector globally. RM/AMA 101104 ISP Licencing Conditions