ISPs after appealing several times to DoT for allowing them to carry unrestricted domestic internet telephony services has referred its case via a petition to Competition Commission of India. They are looking at respite from commission which could bolster their chances against DoT’s decision.
Currently ISPs are only allowed to provide Net telephony for International voice traffic and domestic PC-to-PC calls. ISPs have been hounding for DoT’s permission to carry domestic net telephony as domestic telecom revenues and subscribers far outnumber broadband services.
Indian ISPs are monetizing their broadband operation by offering Wi-Fi internet services along with international net telephony services. The hindrance to enter the domestic telecom market is taking a toll on their future projected numbers, if they are allowed to service this market their revenues can see exponential rise.
DoT at the same time is arguing its case by pointing figures on difference in unified access license fees which telecom and ISP companies pay. Currently ISP license holder pay 6 per cent as fees whereas Telco’s pay anywhere between 6-10%.
DoT needs to open up domestic net telephony service as this should be seen as good value addition to broadband users after the introduction of IPTV. This can create chaos amongst telcos as they have to offer the same services & pricing but will help in raising & facilitating better telecom services in the country.
Net telephony is India can easily beat domestic tariffs but it cannot be guaranteed as the pace of tariff war is intensifying every now and then. The pricing innovation like per second billing coupled with cheap call charges can make domestic net telephony obsolete to general subscribers in terms of cost.
Domestic Net telephony if opened can bring higher revenues to ISP and could merge the line between mobile and net telephony in India. It can still find users despite lowering of mobile tariffs as many subscribers would tend to call from the comfort of their PC & Laptops just like they do while using mobiles.
