Unregistered BPOs may face disconnection of internet connectivity

The government has directed internet service providers (ISPs) to stop providing bandwidth or internet related services to call centres and BPOs which have not registered with the Department of Telecommunications (DoT).

All BPOs and call centres in India are required to register themselves with the DoT. Industry observers say the directive would not impact the larger BPOs, but only the smaller ones who, by not registering themselves with DoT, are technically in violation of the regulations.

The move has been prompted by widespread use by some BPOs of cheap internet telephony, banned in India, that undermines the revenues of licences telecom companies licensed to provide international long distance telecom services.

VoIP or voice over internet calls are offered by unlicensed foreign providers like Net2Phone, Vonage, Dialpad, Impetus , Novanet, Skype and Yahoo!

According to a report, the disconnection would affect the operations of between 3,500 and 4,000 smaller call centres and BPOs in the country.

Last year, the DoT has sought telecom regulator TRAI's recommendations on putting in place a new internet services policy to address issues such as use of VoIP services from unlicensed foreign players.

However, industry sources point out that the country should open up the use of VoIP completely as in the US where telcos compete with low cost internet voice call providers.