DoT directs ISPs to pull the plug on unregistered BPOs

In a move that could put nearly 50,000 people out of job, the Department of Telecom has directed Internet Service Providers to stop providing connectivity to all call centres and BPOs that are not registered with the Government.

Without the leased line connectivity the BPOs will not be able operate, forcing nearly 2000 call centres to shut shop across the country. While the DoT move has been necessitated after it was found that some of the unregistered call centres were using the ISP's infrastructure to make illegal telephone calls, the BPO industry said that they should be given time to register all the call centres operating in the country.

The Business Process Industry Association of India (BPIAI), which is an affiliated association of Confederation of Indian Industry (CII), has strongly opposed the DoT decision. Mr Sam Chopra, BPIAI President, said, "In the globally competitive outsourcing industry, Indian call centers/BPOs must have free access to the most cost-effective technologies, solutions and services from providers in India and overseas. With the restrictive practices being implemented by DoT, our industry will lose out to other emerging outsourcing locations such as Sri Lanka, Pakistan, Nepal, Philippines and Eastern urope."

ISPs also stand to lose business from the decision. "It is very ironic that on the one hand DoT wants to close down unregistered call centres and on the other hand it is not clearing applications from BPOs who want to register," said Mr Amitabh Singhal, Director-General, Internet Services Providers Association of India.

BPIAI has proposed that all unregistered call centres be allowed up to 90 days for filing registration applications with DoT. "The DoT, in turn, must accept or reject registrations within a time-bound period of 30 days. In the interim period these call centres being allowed to carry on their business as usual," said a statement.