VOIP to be Made Illegal in India

Krish writes "Providers like Skype, Yahoo, Net2phone, Dialpad, etc. will not be able to offer VOIP in India under the proposed govt. clampdown. BPOs and other call centers will face the axe if they use any of the VOIP services provided by the above companies. It is not clear if this clampdown will affect regular home users."

Comments

Re:Oh the irony...

[siufish]

Why should it be otherwise?

Ask yourself honestly: will you make any purchase decision based on whether the call centers are in India or in the US? How many times does it come up in your head when you are picking a VOIP carrier? Shopping for a digital camera? Deciding between a Amex or a Visa card?

Now ask yourself the next question: will you make any purchase decision based on the price? If one VOIP costs $19.99/month and has call centers in India, and another costs $39.99/month and employs only American citizen call agents, which one will you choose?

To businesses, call centers are "cost centers", and accordingly should be as cheap as possible. If they can make the same amount of money with cheaper call centers, they will. If customers don't care, they won't care.

Re:Oh the irony...

[arivanov]

That may or may not be the case.

1. The law has been in force for a very long time. Ask anyone who has actually done a proper costing and the legal aspects of outsourcing to India and they will tell you this.

2. The law as such dissallows you to interface into a PBX or anything else which is also connected to the local network over there. In fact as far as the letter of law is concerned this is not that much different from telco regulations in many places around the world.

3. The law does not dissallow you to host as many VOIP phones there as you like provided that they are off your own PBX located outside India and do not interface into the local phone network by any means. So a call center whose guts are located offshore is still fully legal. On(Indian)shore is very murky and it is not something call center outsourcers care about. After all the call center chickens working 10.5 hour shifts are usually not allowed local calls anyway.

4. As far as Yahoo, Dialpad, etc are concerned they are simply required to be registered under the Indian telecoms regs to offer service. This for all practical purposes means that they or their subsidiaries will have to go under majority Indian ownerships. So much for WTO here (actually dunno if they are a member). In fact it is about time someone beat up India in terms of trade treaties and obligations on this.

So overall, this law does not change anything as far as call centers are concerned. The Idian government is not mad to kill their primary GDP source. All it does is to ensure that the near-monopoly of Idian companies on the Idian telecoms market is retained for times to come.