Trai calls for IUC on internet telephony too

NEW DELHI: Consumers may soon have a choice whether to use a telco's normal calling or its app based service for making voice calls. The Telecom Regulatory Authority of India (Trai) Tuesday recommended rules aimed at encouraging telcos to offer voice services over the internet, and compete with the likes of Whatsapp and Skype.

Trai said suggested rules are meant for existing licence holders and virtual network operators — that buy bulk minutes from carriers for offering services — and exclude calls made from mobile apps like Whatsapp, Viber and Google Duo.

The industry, however, said rules required more clarity on several issues, including the critical one of interconnection and its usage charge (IUC), which one telco pays to another on whose network the call terminates.


The regulator said existing IUC – of 6 paise a minute – should apply on internet telephony also as these calls were like any other voice call, and other rules such as linking with mobile number series, allowing lawful interception, monitoring and keeping call records would apply equally on internet telephony calls.

It added however that Trai can issue a separate amendment of clarification if any change in IUC regime is required.

“Internet telephony service can be provided by access service provider to its subscriber who may be using internet of other access service providers… DoT should issue a clarification”.

Telcos can levy charges on these type of calls as well, a senior official said, but service providers will have to inform consumers about the quality of service parameters they will get over internet telephony, to help them make informed choices.

“The subject of internet telephony involves important issues such as the need for an underlying access network, separate numbering series, Interconnection, network security etc., which still need to be addressed,” said Rajan Mathews, director general of Cellular Operators Association of India (COAI), which represents carriers like Bharti Airtel, Vodafone India, Idea Cellular and Reliance Jio.

“Our stated position has been that internet telephony can only be provided by a licensee using its own access network. Our members are still studying the recommendations, and we will be appropriately representing on these issues with all the relevant stakeholders," he added.

Backing its recommendations and arguing against some carriers that internet telephony services may lead to revenue loss – voice still forms 80% of telcos’ revenue – Trai said technological developments have enabled carriers to provide internet telephony through smartphone through an app, and that “increasing revenue realizations from data services due to increasing Internet traffic will not only compensate for the loss of conventional voice traffic but will also increase the revenue potential of the last mile access networks.”

This will increase broadband proliferation and contribute to the overall health of the sector along with increase in consumer choice, the regulator said.