Long distance calling cards get Telecom Commission nod

Full fledged internet telephony may still take more time to be available in India thanks to the governments' decision to continue with the curbs on the cheap service.

However there is some cause for cheer as it has cleared the way for cheaper long-distance calls by allowing Indian subscribers to opt for a telecom operator of their choice, regardless of their service provider.

Under the present telecom policy subscribers can avail the STD and ISD tariffs charged by their service provider. Globally long distance tariffs have gone down 20-53 per cent after customers were given the choice of their operator.

With the latest development, subscribers can purchase cards from an operator of their choice thus allowing players who carry long-distance cards to choose their operator. This opens up the field to RailTel, PowerGrid, Tulip IT and also foreign players like British Telecom, AT&T, Verizon, France Telecom and Cable and Wireless to sell their tariff to directly to customers.

What the move in effect means for the consumer is that they can buy calling cards from an operator depending on the fares they offer, by punching in a set of numbers, through the existing service provider's network.

Industry sources say the move could potentially trigger a price war and bulk consumers, who generate large revenues may exercise this option.

According to industry analysts long distance tariffs are likely to fall at least 60-70 per cent once the STD operators have direct access to the end-subscribers.

Most telcos are opposed to lifting curbs on net telephony as it would hit their domestic market. Last year, industry regulator Trai had called for lifting of all curbs on net telephony.

Under the present policy regime computer to computer calls are only allowed, computer to phone calls cannot be made. However, it allows domestic users make international calls to phone numbers from their computer.

Full-fledged internet telephony would make it possible to make calls from computers to land line numbers and mobile handsets. Mobile handset to personal computer calls would also be allowed.

Rural India could be the biggest gainer with full fledged net telephony as it would allow very cheap calls using the technology. It would also boost broadband growth.