Softswitch and VoIP technologies are connecting people all over the world cheaply and effectively. But things may be changing soon in India. Despite the fact that Skype (News - Alert) is an incredibly popular VoIP calling platform in India, Microsoft made the announcement this week that the company would no longer be supporting calls made to Indian landlines or mobile phones.
Microsoft (News - Alert), which currently owns and operates Skype, did not officially publish any reasoning for the decision and instead kept the official announcement brief: “As of Nov. 10, 2014 Skype will end support for calling within India, meaning calls to mobiles and landlines from Skype within India will no longer be available.”
Skype uses VoIP communications to cheaply and efficiently transfer phone calls over the Internet, which requires a much lighter network than traditional landlines channels do. Additionally, VoIP calls are able to make international and long-distance calls at much lower rates, due to the fact that the information is sent as data packets instead of requiring a direct electrical connection that stretches across thousands of miles. Because of this, VoIP platforms like Skype are incredibly useful for countries like India where outsourcing and other business practices favor international partnerships.
So why would Microsoft decide to hinder Skype calls to India? Some experts believe that this is a move by Microsoft to better comply with Indian regulations that prohibit certain kinds of inbound phone calls, including VoIP. Since India's own VoIP companies are rapidly growing, India wants to ensure that VoIP business remains local.
Fortunately this move is not expected to make a large impact on Skype's revenue stream coming from India, which is reliant on calls originating in India. These calls will still remain supported by Skype. Additionally, Skype will not be removing any support for services besides direct voice phone calls.
Edited by Alisen Downey