Slowly but surely VoIP moving in

BANGALORE, INDIA: After years of wait and watch, Indian communication ministry finally given green signal to Internet telephony in India in September 2005. Previously not permitted in India, following the communication ministry’s directive, Access service provider can provide Internet telephony. If required, access service provider can use the network of NLD/ILD service licensee.

This decision, has far reaching implications on the telecom landscape in India means that VoIP in all its forms has been finally allowed in India. Previously VoIP would be availed by the ISP customers only from Net-connected PC to any other Net-connected PC (within or outside India); AND Net-connected PC to telephone (PC in India and phone abroad, not in India); AND IP phone to IP phone in India or anywhere in the world (provided on each end there was a dedicated IP connectivity typically found among enterprises only).

Though VoIP was permitted in forms mentioned above and also in the carrier transport, VoIP in the access was still regulated. Voice-over-Broadband, for instance, was be illegal in India if the calls are to be terminated into local PSTN.

However after the announcement by the ministry, users can call normal telecom networks within the country from their PCs. The recent VoIP ruling also opens up the Voice-over-Broadband service market.  Most telecom companies will continue to offer voice services in the manner they do now. Consumers can, however, expect lower rates on current voice and internet-access packages.

The communication ministry has also abolished two separate types of data-communication licences: IP-II and IP-VPN. Existing holders of these licenses can now become full-fledged domestic and international long-distance service providers and will be able to directly connect with clients.

Following the deregulation, the progress which till date has been very modest ( From June to August this year, only 39.1 million minutes of PC-to-phone traffic was generated in India compared to 41.52 million for the previous three months) is expected to grow manifold.

During the year Sept 2004 - Sept 2005, 159.62 million minutes of PC-to-phone traffic was generated.

All the operators in India are now actively evaluating VoIP and next generation switching infrastructure projects, whether it’s in the core or the access side, following the favourable ruling that accelerates the process.

Currently traffic is shared by as many as 51 ISPs that are offering PC-to-phone services. DoT has given permission to a total of 121 ISPs to offer PC-to-phone services as on March 2005. The list includes companies like the Bharti, BSNL, Mahanagar Telephone Nigam Limited, Primus Telecommunication India Ltd, Sify Ltd, VSNL, Bharti Infotel Ltd, Vebtel Obconic Internet Protocol Pvt. Ltd, Tata Teleservices etc.

Out of these players VSNL is arguably the most active player in the VoIP market. With its recent acquisition of Teleglobe, VSNL plans to invest in VoIP in a big way in coming years. Apart from VSNL, Bharti is also offering VoIP service to enterprises.

The ruling has also excited the big vendors who are planning to enter the Indian market in big way, Sonus, who long has arguing that that the migration to packet access would be VoBB and not C5M is excited by VoBB being permitted in India. Sonus had announced opening of its support and R&D office in Bangalore back in March, which has been instrumental in helping Sonus penetrate the region.

 Sotswitch vendor Veraz will be actively participating in bids in India for Voice-over-Broadband projects.