At present, there exist over 1,50,000 internet connections and about 4,50,000 internet users, according to a Nasscom survey.

On the crucial issue of providing gateways to ISPs, Mehta said ``our journey from Info-Super footpath to Info-Super highway should not be blocked by Info-Super traffic jam''. He urged the government to quickly set up the inter-ministerial group which would examine and permit private ISP to have their independent international gateway. Such an inter-ministerial group should work in a time-bound manner and provide clearances on a fast track, he added.

Welcoming the beginning of the process of providing Internet Service Provider (ISP) licences to private sector, Nasscomexecutive director Dewang Mehta said ``the privatisation of internet services will lead to nationwide proliferation of information technology, leading to higher rate of literacy, employment and bridging of information gap between rural areas and cities.''Internet proliferation will create a new generation of software entrepreneurs and boost the brand equity of Indian software industry further, he felt.

``The privatisation of Internet will further facilitate our professional and software companies to tap export opportunities in the areas of E-commerce, content development and internet products development,'' added Mehta.``However, steps need to be taken now for encouraging local content development for internet as well as introduction of cyberlaws in the next session of Parliament.''

In his reaction, the managing director of Satyam Infoway and president of ISP Association of India, R Ramaraj, said building backbone using VSAT's should be allowed. This will ensure that the service reaches even the interiorsof the country where we do not have efficient land connectivity. Private gateways for ISPs should be allowed to interconnect with others, or with other international service providers, rather than depend on VSNL gateway.

``We are glad that a long wait, the ISP policy is finally announced. However, there are two main areas of concern. One, the tariff recommendations of the TRAI are not in the new policy. Hence, the cost will not come down. And secondly, the infrastructure service provider is also the competitor. It does not provide a level-playing field for private ISPs,'' he said.

Using Cable TV service providers is a step in the right direction since India already has a vast network of cable TV. Therefore, the infrastructure cost can be reduced and these providers can become the local ISPs, he felt.