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2. This petition has been filed by the ISPAI and others under Section 14 (a) (i) read with Section 14 (A) of the Telecom Regulatory Authority of India Act, 1997. The petition is directed against the action of the Union of India (Respondent) in the Department of Telecommunications (DoT) in issuing guidelines dated 16th December 2004 purporting to extend the scope of services that could be offered by existing and new Internet Service Provider by including Virtual Private Network (VPN)1 Services, even though these services are already being provided by several Internet Service Providers since last many years. The guidelines have been followed by a directive dated 17th January 2005 directing all existing Internet Service Providers to discontinue provision of VPN Services to their customers within 30 days of the issuance of the said letter.

"Regarding VPN, ITU has recognised the existence of various forms of Network Based Virtual Private Networks (NB-VPN) based on different layers. Typically a Layer 3 network based VPN is used which is a VPN operating at layer 3 and providing a layer 3 service between customer devices belonging to the VPN using IP protocols. As per ITU definition of IP-VPN - 'A network based on IP-VPN is a network based layer 3 VPN that uses IP addressing, IP forwarding and routing, and the IP protocol for control and data, and IP technology as the basis for providing the VPN facilities".

21. We have been taken through technical aspects of VPN service and also have been referred to International Telecommunication Union-Telecom (ITU-T) recommendations (No.Y.1311).

22. Virtual Private Network (VPN) is virtual in nature and is not a network connected on physical lines which we will term as Local Area Network, Wide Area Network or Metro Area Network. VPN stands out through its virtuality. Consequently, private means that it is a closed network. It is private because a number of subscribers by ISP who have access on his server are grouped together. At another station through the same ISP or another ISP another set of subscribers are grouped together and these two groups are connected through the Internet Gateways. The subscribers are given passwords and through firewalls2 and additional security measures are made a secure network. Since no other customer/client network can access this network it is called a Virtual Private Network.

42. We do not contemplate that there will be any ISP service provider who would be providing VPN service in spite of our order dated 11.2.2005 refusing to grant any interim relief staying the impugned guidelines.

43. This petition, therefore, stands disposed of in terms of the aforesaid observations.

44. There will be no order as to costs.

1. Virtual Private Network (VPN) is virtual in nature and is not a network connected on physical lines which we will term as either Local Area Network, Wide Area Network or Metro Area Network. VPN stands out through its virtuality. Virtual Private Network as its name suggests, is a private network meant for private use by a selected/specified few individuals/group of users and is not meant for use by public in general. Consequently, private means that it is a closed network. It is private because a number of subscribers by ISP who have access on his server are grouped together. At another station through the same ISP or another ISP another set of subscribers are grouped together and these two groups are connected through the Internet Gateways. The subscribers are given passwords and through firewalls and additional security measures are made a secure network. Since no other customer/client network can access this network it is called a Virtual Private Network.