VoIP- A way to reduce your phone bill

Voice Over Internet Protocol or better known as VoIP or Internet Telephony is not a new word. If you know skype, you know VoIP. VoIP is sending Voice calls over the internet backbone. It doesn't require the conventional PSTN or landline connectivity, so doesn't need any big call charges to make calls. If you have a computer and an internet connection, you can make unlimited free PC-to-PC calls anywhere in the world.

VoIP is mostly used for international long distance calls. As the long distance call charges are very high on TDMs / Landline connections, it makes sense to use VoIP for making ISD calls. Still ISD call charges in India is more than 10 Rs per minute from a landline connection and more than 15 Rs per minute from a mobile phone, using VoIP you can call at a low rate of 2-3 Rs per minute or Free (PC-to-PC calls).

VoIP calls are dependent on the internet bandwidth. The more bandwidth you have, the more voice quality you get. Currently near about 40% of calls through out the world are carried through VoIP, in India this figure is as low as 2-3%. The biggest reason for this is lack of proper bandwidth. India has only 1 million broadband connections verses 150 million telephone connections. With the increase in broadband connections, VoIP usage will increase.

With new directives from Govt. legalizing IP telephony the competition in voice market will increase. The telecom service provider can give VoIP services along with the traditional PSTN telephony and mobile services. The question is, ‘how efficient they will provide these services?’, keeping in view factors like QoS, security and power backup.

VoIP is not only being used by retail customers, many corporates are using VoIP to communicate with other branches, partners, associates through out the world. The example are many like Bank of America, AT&T. Many international call centers are using VoIP for their international outbound calling.

The less infrastructure requirement and low call charges will surely help Internet telephony in India to grow.

Amandeep Singh
Digital Hub India (P) Ltd

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