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Long-distance telecom tariffs could dip again with the telecom regulator expected to announce the rules permitting calls from personal computers to fixed line and mobile phones. Currently, a voice call can travel between two computers but not from a mobile or a fixed phone. This is expected to open huge channels of revenues for the Internet Service Providers, ISP's who wouldn't need to acquire a Unified Access Service Licence (UASL) for operating these services. This would also benefit the telecom service providers like Vodafone and Idea who don't have national long distance licence/network and use other operators' networks to carry long distance calls. These operators can carry their NLD calls using their IP network.

The Telecom Regulatory Authority of India (Trai) is going to announce these recommendations on Monday, despite the misgivings of the current UASL holders. The new competition would push up the heat for established UASL holders such as Bharti Airtel, Reliance Communication, Vodafone and BSNL. The ISP's and the telecom operators have been at war with each other on this issue, with the operators asking for a level playing field. BSNL had pointed it out to the regulator that allowing ISPs will further erode the revenues earned by national long-distance licence holders, while Bharti and RComm had pointed out that in case connectivity between PCs to fixed and mobile phones is allowed, ISPs should be asked to migrate to UASL.

Telecom players have to shell out Rs 1,650 crore for a pan-India UASL, while ISPs pay token Re 1 as the licence fee and the ISPs providing PC to PC telephony have to pay 6% of their adjusted gross revenue. The ISP's however, say that the Rs 1,650 crore fee includes the start-up spectrum cost as well, which will not be used by the ISPs while providing the connectivity between PCs and fixed and the mobile lines. They have also suggested a formula in case the are allowed to terminate the ILD calls.Internet Service Providers Association of India has refuted the UASL holders' claim that the move might not result in a level playing field.

"ISPs basically re-sell services provided by UASL/NLD/ILD Operators and that ISPs are largely dependent on the NLD/ILD/UASL for most resources for which they pay for," said a source connected with the lobby. The source also said more than 85% of the ISP revenue was ploughed back to the service providers, primarily the state-owned incumbents. Since the government has already imposed a 6% AGR on Internet Telephony there would be no revenue loss to the government. Access Providers will also get termination charges so there will be a win-win situation for them as well as the ISP operators.