India to allow Internet telephony from April

NEW DELHI: The Indian government, acting on recommendations made by the

nation's telecoms regulator, said on Friday it would allow Internet service

providers to offer telephone services over the Internet from April 1.

The Telecom Regulatory Authority of India (TRAI) had last month recommended

that the government allow the cheaper, but inferior quality Internet telephony

service without charging the access providers any entry fees.

"After examining the matter, the government has now decided to accept

the (TRAI's) recommendations," a government statement said, adding that

detailed guidelines would be issued on March 22.

India is set to end the monopoly enjoyed by the recently-privatized Videsh

Sanchar Nigam Ltd. over the international calls business on April 1 and throw it

open to unlimited private competition.

The entry of private players is expected to sharply reduce overseas calls

charges from India, now among the highest in the world. The government statement

said from April 1, customers of Internet access providers can make voice calls

from their computers to another computer within India and to a phone abroad.

The move will provide another income stream for scores of Internet service

providers, most of who are bleeding because of huge costs, which they cannot

recover from customers.