TRAI issues recommendations on Internet telephony

By Sumit Chaturvedi and Sandeep Gurumurthi , CNBC-TV18

 

You could soon dial a mobile phone number from your personal computer. A move that internet service providers claim will sharply bring down long distance tariffs but given the stiff opposition from existing telcos will internet telephony be a reality? PC to Mobile and PC to landline calls could soon become a reality.

 

The Telecommunications Regulatory Authority of India ( TRAI ) has issued recommendations on Internet telephony. It has suggested lifting the curbs on Internet telephony and has recommended Internet service providers (ISPs) in order to provide unrestricted Internet telephony. Further, it has recommended allowing NLD Operators to connect to ISPs through public Internet. TRAI has recommended NLD and ISPs to have a mutual agreement for facilitating unrestricted telephony.

 

Currently only PC to PC calls are allowed but the regulator has pitched for unrestricted internet telephony. The Impact of this will be that the ISPs will compete with long distance carriers and long distance tariffs could fall. It's a move that will inject fresh competition into the Long Distance Telephony space and ISP's claim consumers could call long distane for a half of the current cost.

 

Rajesh Charia , President, ISPAI said, " We expect tariffs to fall by upto 50% and welcome this move." The regulator has also allowed long distance operators to connect to ISP's through internet. But existing mobile phone operators have stronly opposed the regulator's move to lift curbs on internet telephony. TV Ramchandran , Director General, COAI said, "There has to be level playing field and can't pay a fraction of fees we pay as licence fees and then seek to compete with us." The Telcos are unlikely to give up just yet. They are likley to lobby hard with the DoT which is expected to take a final call on these recommendations over the next two to three months.