You are on page 1of 5

ISPAI Press Release on June 18, 2008 ON

TRAI Consultation Paper On Issues related to Internet Telephony

“NET PHONE” - CHEAP AFFORDABLE SERVICE FOR COMMON MAN”
“ – ISP’s ASSURES another IT Revolution”
ISPAI welcomes the TRAI initiative to come out with the consultation paper on “Issue related to Internet Telephony” and identifying the key issues which need wider consultations. TRAI has come out with a balanced approach and defined Internet Telephony in detail, keeping in mind the Indian context and the existing regime. We would also like to compliment the Authority on the timely released of the consultation paper on issues related to the opening up unrestricted Internet Telephony by ISPs and we are certain that enough conditions exist to enable the Authority to consider recommending removal of one of the last remaining and blatantly unfair and artificial barrier to the growth of Internet, Broadband and Telecommunications in India. Presently when the prices of every common thing is increasing and at that time the TRAI comes out with their paper for Internet Telephone application to ISP which will be much more cheaper than the general Fixed Line and Mobile Services than if any body opposing this services which is very affordable for a common man means denying the right for affordable communications. Internet telephony is an application which will promote the praise worthy Goal of NTP’99 i.e. “Availability of affordable and effective communications for the citizens is at the core of the vision and goal of the telecom policy.” National Telecom Policy 1999 has clearly set out India's objectives and any further delay or hesitation in removing the restriction on Internet Telephony would be severely detrimental to the same national policy and objectives of making available affordable communication to the common man a reality. At the same time, it will be a big blow to the national aspirations of becoming an IT superpower.

helping the city poor.  It may lead to optimum utilization of resources and provision of least-cost services to the consumers thus leading to maximization of welfare.  It will allow Public Call Operators to set up IP to Telephone calls for its customers at much cheaper rates.36% Service Tax and 6% AGR.  Fulfilling the Demand of “RURAL TELEPHONY” on affordable rates. Key features and benefits of Un restricted Internet Telephony if allowed to ISPs without any rider :  India is far short of Broadband penetration especially in small cities / remote and rural areas. it is high time for government to consider central monitoring by interconnecting various networks. India cannot afford to lag behind in this critical area.  It will increase the government revenue by way of 12. ü Opportunity for the country to earn increasingly higher foreign exchange through ITeS. It will have a positive impact on development of telecom services. and we must move quickly to implement positive measures.  Enhance our national competitiveness in the international market. It will meet the security concern by monitoring all the networks at central locations as well convenience for the masses to use PC/device to making a call. Historically open competition has proved to be the best way to ensure availability of services at fair market rates to the widest spread of society.Unrestricted Internet telephony will provide an excellent opportunity for India to bridge the digital divide.  Security and Monitoring are becoming serious issues in light of the National Security which is paramount for every service provider. especially in rural and remote areas as well as to rural and migrant workers in other areas. Unrestricted Internet Telephony could be one application.  Help in curbing the grey market. which can boost the broadband penetration by providing an economical via media for the citizens to call within as well as outside India. . villagers and small town population.

being also allowed to provide Internet Telephony to PSTN/PLMN in 2005.  Last but not least.Level Playing Field  The PSTN/PLMN operators have raised the issue of level playing field. government has already imposed 6% AGR on Internet Telephony so there will be no revenue loss to the government.  Despite. than why they are charging higher for this low cost carrier. Government should consider the above benefits and overall interests of the consumers. Government had done in past too by allowing present operators against incumbent issuing of licence to Private operators and .  Majority of the operators are still carrying their calls on IP Backbone which is cheaper than the erstwhile TDM network. ILD and internet telephony was opened up and same issue was raised.  Moreover. However. 4 are facility based telecom service operators and it is expected that they are most likely to benefit from this service.  In 2002. Opening this service for ISPs will only spur and motivate the Telecom operators to provide services that they have so far failed to initiate. among the top 5 Internet Service Operators. while providing differentiated service options to customers based on best technologies as envisaged in the national telecom policy. If ISP claims that they can carry calls in cheaper prices than similarly this operators can do and are doing. Focusing on the respective interests of any particular category of service providers will deprive consumers from getting an affordable telecom services. why not the benefits are being passed on to the common users. Therefore. it is high time that ISPs as the natural Internet service operators are allowed forthwith. More than 85% of the ISP revenue goes back to these service providers. primarily the stateowned incumbents. the UASL/Mobile operators have failed to provide these services to the citizens. Access Providers (PSTN & PLMN) will also get termination charges so there will be a win-win situation for ISPs as well as PSTN/PLMN Operators .  It is worth mentioning here that ISPs basically re-sell services provided by UASL/NLD/ILD Operators and largely dependent on them for most resources for which they pay for. carrying most of the traffic over their access and long distance networks and hence level playing field issue is still loaded in favor of telecom operators. It only helped in expand the market further.

THE RESULT “GROWTH.reducing their licence fees. GROWTH & GROWTH in TELECOM” Today we are the largest in World. THEN why oppose now??? .

BY BSO/ASP . 1/- Even in own network the ISD call rate can come down to around 50 paise.10 paise . 10 paise in other IP network.Rs.50 paise per minute BY ITSP . same with the Local calls can be ZERO in case of own network.per minute BY ITSP . and in other IP network 75 paise. New Delhi +9198110 38188 E Mail: rc@cjnet4u. a higher telephone bill would never be a worry for a Mother.Comparison between Internet Telephony Call Vs PSTN/PLMN Call: In case ITSPs/ISPs allowed to terminate ILD calls on PSTN/PLMN Foreign Service Providers get Bandwidth Access Service Providers ITSPs/ ISPs get Total ILD call cost approx. 1/. With this new development. Rajesh Chharia President Internet Service Provider Association of India. whether in metro or any part of rural India.Re.10 paise .Re. BY BSO/ASP 40 10 30 20 paise paise paise paise . 4/- In case ITSPs/ISPs allowed to terminate STD calls on PSTN/PLMN Bandwidth Access Service Providers ITSPs/ ISPs get Total STD call cost approx. who earlier used to think twice before calling her son/ daughter sitting in any other part of the world. STD call rate around 15 paise and in other IP network 25 paise.com .30 paise . This application can also increase the penetration of Broadband especially in rural part of India.