Internet services were launched in India on 15th August, 1995 by Videsh Sanchar Nigam Limited. In Nov, 1998, the Government opened up the sector for providing Internet services by private operators. A liberal licensing regime was put in place with a view to increase Internet penetration across the country. The New Telecom Policy envisaged opening up of internet Telephony where upon Government decided to permit ISPs to process and carry voice signals (Restricted Internet Telephony) with effect from 1st April 2002.
In year 2007, the Government decided to issue a single licence under which permits restricted Internet Telephony for the ISPs.