ISPs and MNCs fight over internet telephony
By siliconindia   |   Thursday, 18 June 2009, 23:46 IST
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ISPs and MNCs fight over internet telephony
Bangalore: Internet Service Providers (ISPs) are alleging that several MNCs like Skype and Vonage are offering illegal internet telephony, reports Economic Times. Internet telephony, estimated at 200 million minutes a month has become a reason for conflict between the Internet Service Providers Associations of India (ISPAI) and the Internet and Mobile Association of India (IAMAI). Internet telephony allows one to talk from anywhere in the world by downloading a free software on the PC and using a headset. ISPAI, with its members like Worldphone, Webtel, Sify, and Net4India is alleging that large MNC players like Skype, and Vonage are eating into the market share by providing illegal unlicensed net telephony. They have also alleged that voice chat through Google, MSN and Yahoo is leading to loss of revenue for the government and, poses security concern. MSN and Yahoo, however, are denying these claims. IAMAI, supporting Yahoo, MSN and others says that, since these companies offer free service where is no need to levy a service tax by licensing. "We will abide by whatever the government asks us to do. On the service tax front, we don't accrue any revenue as our PC to PC telephony service is free. We offer PC to phone service globally, but not in India as it's not permitted," said Microsoft India, Country Manager (online services business), Jaspreet Bindra. Internet companies offering chat services too, say that security checks are done randomly and, that they cooperate whenever the government asks them to do so. However, ISPAI says that call data records under voice chats are not saved by unlicensed providers. "In India, companies like Skype, Vonage, Packet 8, Go2call, Lingo, Impetus, Dialpad and Net2Phone have been offering unlicensed net telephony services, which are mostly illegal. If they do not opt for a license, the government should block them," said Rajesh Chharia, President, ISPAI. Vonage's India representative, Janki Raman retorted, "We have zero revenues from India. Nevertheless, we applied for a license in March 2006. Moreover, only U.S. and Canada credit cards work on our site, so their claims are baseless."

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