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Anita Bora
When the Forum for Open Network Enhancement (FONE) called a press conference on the 'End of the Internet', focusing on selective blocking of Internet telephony sites by some ISPs, it was a clear signal that all wasn't well in the telephony market.
Consumers heaved a sigh of relief when Net telephony was legalised in India in April 2002. For a reasonable Rs five or six per minute, a user could simply log into his computer and call any telephone number overseas.
This move saw ISPs like Satyam Infoway, Net4India, Caltiger and foreign application providers like net2phone.com, go2call.com and others get into the fray. In fact, according to CAGR the IP telephony market growth rate was pegged at 119 per cent and turn over Rs 13,000 crore by 2005, according to IDC.
The debate
A few months down the line, FONE has launched an online (and offline) initiative to make consumers aware that "service providers are participating in monopolistic and anti-consumer activities by blocking access to select Internet sites". These are the points of contention:
- Licensed ISPs have begun blocking access to sites where other service providers have been operating Internet telephony businesses. This means that if you have a phone card of ISP A, and are using a dial-up service of ISP B, in all probability the phone card will not work.
- Restricting access threatens Indian competitiveness in an extremely valuable business.
- None of the phone cards, when purchased by a consumer mention that a particular ISP's card will not work with another ISP's dial-up backbone.
FONE was launched with the support of the Internet Users Community of India (IUCI), whose members include Shammi Kapoor (Chairman IUCI), Vijay Mukhi (Executive council member NASSCOM), Vickram Crishna (Founder, Hawking Communicator Project), Arun Mehta (activist founder of Society for Telecom Empowerment), Tushar Gandhi (consumer rights spokesperson) and Kanakasabapathy Pandyan (Co-founder NASSCOM).
K Pandyan, who is actively involved in the FONE initiative is emphatic about the fact that the consumer is losing out in this battle among ISPs to block one another.
We tested a few phone cards to check if this was really the case. Both the Caltiger (powered by net2phone.com) and phonewalla.com cards worked with a VSNL dial-up connection, whereas we weren't able to connect using a Now India dial-up. There was however, no indication as to why the error was occurring.
Also, Dialhelloworld from Dishnet DSL works with a DSL connection. R Desikan (Sr Manager, corporate communications), of DSL also says that the card can be used on any other Internet connection.
Machine Requirements
- Internet connection (Broadband recommended for calls with less time lag and static)
- Multimedia kit
- Full-duplex sound card
- Speakers and microphone (or headset -- recommended)
- Global PC-to-Phone Calling Card
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The Satyam Infoway (SIFY) phone card, way2talk, works only with SIFY and broadband is recommended for best results. Roltatel, the card offered by Roltanet, has dial-up access fees built into the price of its card. However, their customer service person assured me that it can also be used with other ISPs. Valufon, a service provided by Indiatimes works on the HCL Infinet network.
Why are ISPs blocking each other and what is their justification? Isn't the consumer getting a raw deal as a result?
The secretary of the Internet Service Providers of India (ISPAI), Amitabh Singhal says that the body has held several discussions with various member ISPs on the 'blocking issue'. "The breakthrough is that both sides (those for and against blocking) have agreed to an understanding, which will form the basis for unblocking competing net telephony services."
"One important reason why this (blocking) is being done is that, there is a dire need to check the illegal providers of Net telephony services (providers not licensed and authorised by the Department of Telecommunications)," explains Singhal.
Rajesh Chharia, the vice president of ISPAI also echoing this statement says that illegal cards result in huge losses to ITSPs (Indian Telephony Service Provider) of India. "We, from the platform of association appeal to the users to boycott this illegal cards, and in future we are going to take strict action against these illegal cards," says Chharia.
Both the members assure that the problem is now solved, with an agreement being arrived at, only the signing stage remaining. For users, Indian cards will be much more beneficial, assures Chharia, as problem will be solved by the related service provider. However, in the case of illegal cards no help or solution will be provided.
The case of legal service providers being blocked will also be solved now, according to Singhal: "These agreements will be between licensed and authorised service providers and will have to be designed and implemented in a manner and in co-operation with the international ITSP's, that'll help block only those buying such services from illegal/unauthorised channels."
According to SIFY, the real issue is the illegal flooding (voice trafficking) of the market by operators who are using the network backbone of ISPs to offer Web-based telephony services at low costs. They benefit in a big way, at the expense of the ISP who has spent money and effort to set up the telephony network. The problem therefore, is the grey market, not the blocking of sites and infringing upon the rights of individuals. (Read the complete response here)
According to FONE, issues like a Net telephony service riding on the ISP's network backbone (at their cost) do not hold good. A typical user having already paid for bandwidth utilisation to his ISP, is using Net telephony like any other service, for example, chatting, e-commerce, downloading photographs - some of which probably require more bandwidth than a PC-to-phone call. FONE therefore feels that bandwidth issues are not relevant here, and ISPs are cutting down on a flourishing business, by cutting off each other, and harming consumer interests as a result. (Read the complete response here)
HAVE YOUR SAY
While there's the valid issue of the flooding of the grey market, the end result is quite clear. The consumer who's willing to pay to use Net telephony is in most cases unaware of this fracas between ISPs and stands to lose. This is also compounded by the fact that none of the ISPs mention clearly anywhere that their phone cards will not work with another ISP's dial-up backbone.
FONE has also set up a page for users to send in their experiences about Net telephony.
A comparative chart of Net telephony services
Phone Card/ ISP
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Web site
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Denominations (Rs)
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Phonewalla/ Net4India
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www.phonewalla.com
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50/ 100/ 250/ 500/ 1000
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Caltiger
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www.caltigern2p.com
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50, 100, 250, 500, 1000
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Helloworld/ Dishnet DSL
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www.dialhelloworld.com
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100, 250, 500, 1000, 5000, 10,000
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Way2talk/ SIFY
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www.way2talk.com
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100, 250, 500
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Anmol/ MTNL
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web1.mtnl.net.in/anmol
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200, 500, 1000
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Rolta Tel/ Roltanet
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www.roltatel.com
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500
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Valufon/ HCL Infonet
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www.valufon.com
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100, 250, 500, 750
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Country-wise comparative chart (In rupees per minute)
Phone Card
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USA
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Australia
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Singapore
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UK
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Canada
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Phonewalla
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4.95
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6.55
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4.95
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4.95
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4.95
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Caltiger
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5.00
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5.00
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9.30
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5.00
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5.00
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DialHelloworld
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5.95
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5.95
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6.00
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5.95
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5.95
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Way2talk
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6.00
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6.00
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6.00
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6.00
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6.00
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Anmol
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4.80
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4.80
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4.80
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4.80
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4.80
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Roltatel
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5.00
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5.00
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5.95
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5.00
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5.00
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Valufon
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4.99
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5.95
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4.99
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4.99
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4.99
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Tips when purchasing phone cards
- Check if you can use the card with another ISP. If still doubtful, call their customer service number or check their Web site
- Some cards have inbuilt costs. This means a phone card worth Rs 100, might give you talk time of about Rs 80. Phone cards like Roltatel, have a dialer inbuilt and the price is included.
- How are you being billed? For example if you get billed for one minute, for a 20-second call, you're getting a bad deal.
- Read the fine print. If you are buying a phone card worth Rs 500, but you can only call up to Rs 300, you might want to reconsider.
- Check validity or expiry date.
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