Skip to main content

The VoIP horse that has long since bolted

In June 2018, DoT announced with some fanfare that VoIP calls would now be “untethered”. Is this time for a celebration?

The truth is, VoIP calling became mainstream a long time ago. The original restrictions were designed to make life difficult in a world where phones were dumb and PCs smart; the world moved on and the restriction that both sides needed the same app installed became a fairly insignificant one. To add ketchup to the fries, smartphones smartly built deep integration to the point where the VoIP applications themselves did not need to be fiddled about with. Calls could be initiated from phonebooks directly and missed or received calls showed up along with “regular” phonecalls. And Indians caught on quickly — indeed, even while the ban was operational in full in 2017, (according to data from Warp Speed Reads, a telecom and technology research firm) some 28% of all voice calls in India were VoIP calls made through WhatsApp and Skype and the like. That’s over 80 billion call minutes; one might say more than a few horses have bolted.

Why have such a regulation at all, especially since we seem to be quite at odds here with the rest of the world? The original reason was protection of telco revenues — especially those eye-watering rates that telcos charged you for long distance and international calling (in the year 2000, calling 1,000km away would cost over Rs 30/min) supposedly to compensate for their investments in networks. Then came 2003 and Skype, which threatened to derail the party by charging next to nothing whatever the distance. Now the powers-that-be could have rewarded services that seemingly was good for consumers while punishing overcharging incumbents but such was not to be. VoIP was duly banned, at least where ever it touched anything that the Telcos thought as their domain. Computer-to-computer calling purely over data networks was exempt; but try to link any bit of a voice call to the telecom network (“VoIP-to-PSTN bridging” in the lingo) and someone would pounce menacingly. Telcos themselves moved conveniently to VoIP backbones to carry traffic across states and countries, but any whiff of innovation from anyone outside the charmed circle was quickly snuffed out.

To bolster their case the telcos had the support of the security establishment who proclaimed loudly the problems of caller ID and intercepting of VoIP calls of drug dealers and terrorists while they were chatting about the weather and whatnot. No one told the terrorists of course; the 26/11 perpetrators seem not to have bothered about the ban. It created a nice absurdity; the only kind of VoIP that was banned was the kind that started or ended in a regular phone line — easily tapped with conventional means on the telco side. The app-to-app variety that was indeed difficult to intercept —ah, well not only was it allowed (maybe a bit grey, that area there) it was widely, widely, widely used.

You may ask, why bother anyway. So somethings were banned, some were not, a bit of absurdity helped spice up things but no harm was done. Mothers got to talk to their NRI sons without much fuss, Nanu, Ringo and a few upstarts griped a bit but all was overall fine. The truth is, this policy did indeed cost the Indian industry a goodly bit — modern call centres process voice calls through lots of software to stay competitive, and in India that meant a complex, expensive dance of multiple telecom lines and PRI cards, all tied together with unnecessary, frustratingly difficult customized integrations. Every BPO, every tech multinational, every company that had anything substantial by way of a call centre had to run mini telecom empires to stay competitive while their global counterparts failed to understand what the fuss was about. And we kicked out or harassed a generation of entrepreneurs — people like Bhavin Turakhia or Ambarish Gupta moved focus to other countries and left India alone. Even a giant like Reliance Infocomm ran into walls in trying to make international calls cheaper using a VoIP backhaul.

What changed? In a word — Jio. The license that the bigger Reliance acquired on the way to telecom supremacy was only for data, so becoming a voice operator required some gymnastics and a change in the rulings. Luckily, big brother had the required charm and things happened; not as fast or as fully as people would have liked but better than before. The clarification, even as it has come, leaves enough unsaid ambiguity to make Samuel Beckett smile. If things do go the way of the rest of the world, though, we can expect a few price drops, service offerings and entrepreneurial wealth creators to follow.

So to that extent, yes — it is time to celebrate. Just don’t expect the fireworks to be very loud.

Comments

Popular posts from this blog

Outsourcing I–The "Why" Question

A little while ago, I was asked to give a presentation to CEOs on outsourcing. The audience wanted to know about adopting outsourcing for their companies; making use of its promise while avoiding its pitfalls. It seemed to me (unimaginatively, I must admit) that the whole thing boiled down to four fundamental questions - the why , the what , the who and the how . I decided to expand the presentation into a series of blog posts, one per question. The Why Question Why outsource? Given that a trillion-dollar industry has crowded a lot of people into Bangalore and made more than one driver rich, it seems a little late to ask this question. However, this isn't really about outsourcing being good or bad per se. Bloggers like us love to wallow in theoretical questions; companies usually want answers to more prosaic stuff. The question really is, why should a company be looking for an outsource partner ?   I've divided the universe into two simple flavours – Tactical and Str

The Economics of 'E'

Mass market retailing is an expensive business. Rents, staff, inventory – the average brick and mortar retailer struggles along with barely visible net margins (spontaneous dancing is known to happen at 5%). With thousands of stores, hundreds of warehouses and over two million employees, Wal-Mart has in the last five years managed a profit margin of just 3.5%. The story is no different for any other major brick & mortar retailer, American or desi. Cool-kid-on-block Internet retail, on the other hand, thumbs a nose at the old-fashioned ways and gives the distinct impression that it can do much better. There's just one small problem. The bellweather Amazon, for all its buzz, seems unfortunately to have done much the same (indeed, a little less at 2.48% over the same period); nor has any other sizeable virtual retailer done much different. What gives? The law of unintended consequences, that's what. Lets take two of the most discussed items – rent and inventory. Mind you, thi

Outsourcing III–The "Who" Question

A little while ago, I was asked to give a presentation to CEOs on outsourcing. The audience wanted to know about adopting outsourcing for their companies; making use of its promise while avoiding its pitfalls. It seemed to me (unimaginatively, I must admit) that the whole thing boiled down to four fundamental questions - the why , the what , the who and the how . I decided to expand the presentation into a series of blog posts, one per question. The Who Question Once you've clarified why you're looking for an outsource partner and also which pieces to outsource, you're faced with the next big question – who? What should you look for in your potential outsourcing partner? The choice, I put to you, comes down to four linked characteristics. Ability The first characteristic, of course, is ability. A vendor cannot be under consideration at all if the basic ability to handle whatever you plan to outsource is not present. This is not always an easy thing to judge, especi