I have been reading this article with some skepticism actually regarding VoIP failing in India. Well, it has been sometime though that VoIP has been around here with local companies like phonewala.com doing brisk business. However, as the report cites Indian regulations allow VoIP calls to be made only on international destinations like the US, Asia-Pacific and EU countries.



Also, the report cites the abysmal broadband penetration rates in India is a major hindrance. With a million broadband users out of 125 million telephone users, it is a really small market.



However, I still remember when we VoIP was allowed to be used to make international calls, the enthusiasm of people were really very high even in small countries. In India, a large number of people use internet kiosks or cyber-cafes to access internet for personal reasons for until recently, internet was very costly indeed with approximately 50 cents an hour. That is a fairly large amount of money in a country like India.



The number of illegal VoIP operators in India is also very large and it is a thriving business indeed. So, the signs are there that if the regulations along with and the protectionist attitude of preserving inland telephony service operators’ interests are done away with, India being the world’s second largest consumer market can really fuel the global growth of VoIP and other IP-based services.



The telephony market has just being opened and major private players like Reliance Infocomm, Tata Indicom have put in a major stake in India’s telephony sector. It would be very difficult for the government in power to deregulate VoIP just yet. However, the current soundbytes from Dayanidhi Maran, Union Minister of Information Technology and Communications spells optimism. I am sure, the regulations will be done away with in this year itself. If not completely, then a majority of the screws in place would be loosened.



We can only come to some sort of a definite conclusion on India’s VoIP prospects seeing the next 18 months. In the mean time, we should look up to how the mobile market boomed when the chains were unshackled.



India has always been a slow starter in such things, but when it does take over, it surpasses and surprised many.



We can be optimistic.