TRAI floats consultation paper on VoIP services including internet telephony

TRAI has issued a consultation paper on VoIP services, or internet telephony. This is not a response to the COAI asking for regulation of OTT  telephony apps on the basis that if there is the same service being provided, then the same rules should apply to the service providers. Instead, it is a broader and more holistic look at VoIP, and actually intends to hold telecom service providers accountable for quality of service on VoIP calls. At present, internet service providers (ISPs) can provide internet telephony from personal computer to personal computer. With advancement in technology, mobile phones are facilitating voice calling through apps like Whatsapp, Skype, etc. “Therefore, it eventually has to be decided what aspects of conventional telephony regulation should apply to internet telephony service. To encourage internet telephony services in the country, issues such as allocation of telephone numbers, interconnection, interconnection usage charges and access to emergency service need to be addressed urgently,” TRAI said. The paper lays out the difference between Internet Telephony and Voice over IP. Voice transmissions over the public internet are categorized as Internet Telephony, and transmissions over managed networks is called VoIP. In this sense, Internet Telephony is VoIP, but not all VoIP is Internet Telephony. VoIP is cheaper than traditional networks when it comes to delivering a same or similar service, and this can actually help reduce bills for customers. However, TRAI notes that telecom service providers might be reluctant to introduce VoIP technologies to consumers, because they already provide a similar service over traditional networks. These earn them profits at higher margins, which is why service providers might be hesitant to axe the branch they are sitting on. As with every consultation paper, TRAI has asked stakeholders to comment on a number of key questions. The issues raised are setting a licensing fees for internet service providers in case they are allowed to provide unrestricted VoIP services. Another issue is call termination charges, which is essentially introducing the call drop rate benchmark for VOIP as well. A question is posed on the framework for introducing a numbering system for VoIP services. TRAI has asked for proposals on mechanisms to introduce location data to VoIP calls made to emergency helpline numbers. The consultation follows recent dispute between private telecom operators and state-run BSNL which announced the launch of a new service that enables its customers to make local and STD calls from their landline phones in India by using a mobile application when they are abroad. Voice over IP(VoIP) uses network resources much more efficiently than conventional telephone service, reducing the costs of providing a call (albeit with the loss of some call quality and service features) and creates opportunities for regulatory arbitrage that enable TSPs and consumers to reduce or avoid call charges, TRAI said. Industry body COAI alleged that BSNL’s new service for making calls is in violation to licence norms. The regulator has sought comments from public on internet telephony by July 21 and counter-comments by August 4, 2016. With inputs from PTI