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Nothing in Life is Free

 
December 24, 2014

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  By Maurice Nagle, TMCnet Web Editor
 


As the net neutrality debate here in the United States rages on, other parts of the world are doing less talking and taking more action. Traditionally, VoIP services have offered a cost-effective and reliable way to may phone calls via the Internet. As adoption rates of VoIP services raise, thanks in part to the enterprise and apps like Skype and Viber, the service is turning more and more controversial.


Bharti Airtel (News - Alert) ranks in the top four of global service providers in subscriber base, and operates in 20 countries across Asia and Africa. This week, Airtel announced that its customers will have to pay extra for the use of VoIP services, as it will be charged separately from one’s existing data plan.

The Airtel website stated, "All Internet/data packs or plans (through which customer can avail discounted rate) shall only be valid for Internet browsing and will exclude VoIP (both incoming/ outgoing). VoIP over data connectivity would be charged at standard data rates of 4p/10 KB (3G service) and 10p/10 KB (2G service)."

This is simply an attempt to improve revenue and data network. According to an Airtel spokesman, the new charges will only apply to pre-paid customers and will be implemented shortly. Indian telecom carriers in general, earn more revenue from pre-paid customers as opposed to those billed at the end of the month.

For some time, telecom carriers have been calling for regulation of VoIP providers like Skype (News - Alert) and WhatsApp as the services leverage carrier networks to earn money. Airtel’s action can easily be interpreted as a direct response against OTT services.

To put the market in perspective, according to a trak.in study the OTT space in India is quite busy with WhatsApp leading the charge:

  • WhatsApp – 70 million active users
  • Hike – 35 million registered users
  • Line – 30 Million users
  • Viber – 25 million users
  • WeChat – < 20 million users

Could Airtel’s move foreshadow what can be expected in the United States? Only time will tell the tale. VoIP’s growing popularity with consumers and the enterprise illustrates its sustainability, but the question of regulation is still being deliberated (at least here in the U.S.). In the meantime, Airtel has taken the matter into its own hands.




Edited by Alisen Downey
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