In a move that would see STD tariffs dropping even further, the Telecom Regulatory Authority of India (Trai) on Monday recommended ?unrestricted Internet telephony?, which once implemented would enable calls from personal computers (PC) to fixed line and mobile phones. Internet telephony in the current format only permits only PC to PC calls.
The move would enable Internet service providers (ISPs) to provide full telephony services. However, mobile service providers like Bharti Airtel, Reliance Communications, Vodafone-Essar and BSNL are expected to feel the heat with increased competition leading to doward pressure on already rock bottom tariffs.?
In fact, the GSM industry body, the Cellular Operators Association of India (COAI) expressed unhappiness over the move stating that the move doesn?t ensure a level playing field and created a bias in favour of the ISPs as they would not require a unified access service licence (UASL) to provide the services. The lobby also stated that the reccomendations weren?t in the interests of the consumer as they didn?t touch upon the quality of the services or provide an emegency dialing number. The regulator however pointed, ?It was expected that access service providers will provide highly popular services like Internet Telephony and boost broadband penetration but it has not come on the ground. As such our subscribers are denied advanced value added services in contrast to global scenario where such Internet-based services are popular.?
The move will also benefit telecom service providers like Vodafone-Essar and Idea Cellular who don?t have national long distance licence/ network and use other operators? networks to carry long distance calls. These operators can now carry their NLD calls using their IP network and thereby save on carriage costs.
The ISPs and the telecom operators have been at war with each other over Internet telephony, with the operators asking for a level playing field. BSNL had pointed it out to the regulator that allowing ISPs would further erode the revenues earned by NLD license holders, while Bharti and Rcomm had underlined that in case connectivity between PCs to fixed and mobile phones is allowed ISPs should be asked to migrate to UASL.
Telecom players have to shell out Rs 1,650 crore for a pan-India UASL, while ISPs pay token Re 1 as the license fee and the ISPs providing PC to PC telephony have to pay 6% of their adjusted gross revenue.
The ISPs, however say that the Rs 1,650 crore fee includes the start-up spectrum cost as well, which will not be used by the ISPs while providing the connectivity between PCs and fixed and the mobile lines. They have also suggested a formula in case the are allowed to terminate the ILD calls.