Get ready to dial a new set of new numbers. If Internet telephony, recently cleared by the telecom regulator Telecom Regulatory Authority of India (Trai) becomes a policy, it could steal a part of the limelight from mobile telephony. For long, this medium stayed in the wings as mobile danced its way to glory in India.
Today, there are over 8 million mobile subscribers being added every month, while the number for Internet connections is an abysmal 40 million. However, things have started looking up for Internet.
First came 3G, which has the power to not only significantly enhance the mobile experience but also give a big boost to the Internet penetration in the country. But, the real boost will come if the department of telecommunications (DoT) accepts the recent recommendations of Trai for opening up Internet telephony.
For the uninitiated, once VoIP (Voice over Internet Protocol) or Internet telephony comes into play, calls between PCs, PC and mobile, PC and landline for local, STD and international destinations would be possible. It will make broadband an attractive proposition for the masses as call rates will be chopped by almost half. Moreover, it will completely change the Internet landscape in India by revolutionising the way corporates communicate. It will also bring some relief for the BPO industry, which is reeling under high cost pressures.
Internet telephony will mean convergence of broadband for voice (calls), data (web surfing) and video (cable TV) for the masses. It will not only be a low cost option, but also a medium that can do much more than just web. As the demand will grow, the broadband penetration will spread deeper into the country, industry experts claim. The implementation of WiMax too, will speed up. ?What will fuel the technology revolution is the fact that people will be able to access the service from their landline phones, mobile, PCs or a WiMax phone. So, infrastructure will not be a major roadblock,? says HS Bedi, CMD, Tulip Telecom.
According to Rajiv Kumar, COO, World Phone, which currently operates VoIP services for international calls, the corporate segment will be the first to migrate to the new generation network. With the change in policy, corporates would be able to make calls between domestic and international centres, and to the outside world through the Internet. ?This will cut their communication cost by 50%,? says Kumar. He adds, ?The corporate segment has already been using the technology for international communication. Therefore, it will be easier for them to accept it for domestic use as well. However, for the home segment, the acceptance will depend on the rollout of broadband, 3G and WiMax.?
As per the industry figures, VoIP makes for 20% of the total call flow globally and the number is increasing. While most developed nations have adopted the technology, India is expected to catch up with the rest of the world, given the cost advantage of the technology.
The next big beneficiary of Internet telephony is expected to be the BPO industry, which is highly dependant on voice. Though most big BPOs have their own leased lines for making and receiving calls, this will surely be an alternative for them. SV Ramana, president, Other Service Providers Association of India (OSPAI) feels that though most BPO players will like to continue with their leased lines set up, smaller BPOs, especially start-ups may take this route to beat the escalating costs.
?One leased line costs around $7,00,000 which might be unaffordable for start-ups. Though established players may not want to switch to VoIP due to quality issues, once the glitches are removed and the quality of voice improves, the technology will sell like hotcakes not just in BPOs but everywhere,? says Ramana.