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The Authority suo-motu had initiated a consultation process on 12th May, 2008 titled “Issues Related to Internet Telephony”. The Authority has considered regulatory framework which is technologically neutral, enables developments, innovations and growth of the telecom sector for benefit of common masses while ensuring that business models of access telecom service providers are not adversely impacted.

The end-users in country must be delivered the innovative and cost effective services. Due importance have been given to level playing filed among various service providers, Interconnection mechanism, Interconnect usage charges (IUC), Numbering, Lawful interception, Emergency number dialing, Interoperability, Quality of Service etc. Overall licensing framework has been protected while permitting unrestricted Internet telephony to ISPs.

Summary of Recommendations

4.1 Level Playing field (para 3.10.16)

4.1.1 Internet telephony may be permitted to ISPs with permission to provide Internet telephony calls to PSTN/PLMN and vice-versa within country and necessary amendments made in the license provisions.

4.2 Interconnection (para 3.11.30)

4.2.1 ISPs shall be permitted to have interconnection with NLD operators through public Internet (Internet cloud) only for the purpose of provision of unrestricted Internet telephony within country.

4.2.2 National Long Distance (NLD) Operators shall be permitted to connect to ISPs through public Internet (Internet cloud) to facilitate termination of Internet telephony calls on PSTN/PLMN and vice-versa including among ISPs both within telecom circle as well as across the telecom circles.

4.2.3 The terms and conditions of Interconnection including standard interfaces, point of Interconnection and technical aspects shall be governed by guidelines/ orders/ Directions/ Regulations issued from time to time by TRAI under TRAI Act 1997.

4.2.4 The AGR of a NLD for the purpose of calculation of license fee shall include revenue from carriage of Internet telephony also apart from their normal revenue.

4.2.5 The agreement between ISPs and NLD to facilitate termination of Internet telephony calls on PSTN/PLMN shall be on mutual agreement basis. TRAI shall monitor the progress and may intervene in case mutual agreements are not effective.

4.2.6 NLD shall negotiate carriage charges with ISPs within the ceiling limit prescribed by TRAI under IUC regulations from time to time. In no case, carriage charges shall be more than upper ceiling limit prescribed by TRAI.

4.2.7 NLD shall make suitable commercial and technical arrangements with access providers (PSTN/PLMN) and ISPs to facilitate Internet telephony call termination on PSTN/PLMN and ISPs.

4.2.8 DoT shall also indicate the ENUM gateway domain name proposed to be used by the ISP while allocating the numbering resources to ISPs for Internet Telephony calls.

4.3 Numbering ( para 3.13.13)

4.3.1 Allocation of E.164 number resources may be permitted to ISPs also for providing Internet telephony.

4.3.2 TEC to conduct the study to assess Internet Telephony number resource requirement. Based on the study, appropriate number blocks may be earmarked for Internet telephony in newly recommended 11 digit numbering plan.

4.3.3 ISPs providing Internet telephony services shall be allocated number resources from the earmarked Internet Telephony number resources in a block of 1000 numbers or it’s multiple.

4.3.4 DOT may prescribe charges for E.164 number allocation to ISPs, if any, considering availability of number resources, ISP’s business model etc..

4.3.5 UASPs, BSOs & CMSPs shall also be allocated number resources to provide Internet telephony from the identified blocks earmarked for Internet telephony. No fee shall be charged from UASPs, BSOs & CMSPs for allocation of number resources for Internet telephony service. Additional number resources shall be allocated to access service providers, for Internet telephony, only after they submit proof of utilization of 60% allocated numbers.

4.3.6 DOT shall notify the domain name of the respective ENUM domain while allocating number resources for Internet telephony to ISPs, UASLs, CMTS and BSOs. Based on this information, all NLD facilitating Internet telephony shall update their records within 10 working days.

4.4 Emergency number Calling (para 3.14.8)

4.4.1 Internet telephony service providers may be encouraged to facilitate access to emergency number calls; however they may not be mandated to provide such services at present.

4.4.2 The Authority will review its decision to mandate emergency number dialing at appropriate time.

4.4.3 Internet telephony service providers must inform their subscribers’ availability/ non-availability of emergency number calling facilities in unambiguous terms.

4.5 Lawful Interception and Monitoring (para 3.15.8)

4.5.1 Each Service provider intended to provide Internet telephony service within country shall install Lawful Interception (LI) equipment fulfilling all the requirements stipulated by the security agencies.

4.5.2 Each Service provider intended to provide Internet telephony service within country should abide by the provisions related to encryption as prescribed in the respective license. All ISPs providing Internet telephony shall also abide by additional provision prescribed by licensor or TRAI from time to time.

4.5.3 All Service Providers providing Internet telephony within country shall ensure installation of suitable LI equipment in time bound manner as prescribed by DoT.

4.5.4 Pre-clearance of LI equipment by security agencies shall be required prior to starting of Internet telephony services.

4.5.5 DoT may not allocate number resources to ISPs willing to provide Internet telephony services until security clearance for LI equipment from security agencies is obtained.

4.6 Interoperability & Standardization (para 3.16.5)

4.6.1 Interoperability and standardization should be left to the market forces at present. The Authority will monitor the market developments and will review the same at a later stage if required at appropriate time.

4.7 QoS for Internet telephony services (para 3.17.8)

4.7.1 QoS on Internet telephony may be left to market forces at present.

4.7.2 The service providers must inform QoS parameters supported by them to their subscribers so that they can take informed decision.

4.7.3 The Authority shall review the decision regarding mandating QoS to Internet telephony service providers at appropriate time.

These recommendations are a step forward towards developing supportive regulatory environment, encouraging technological advancements, enabling convergence, making unrestricted Internet telephony available and boosting of broadband penetration. These enabling recommendations will put Indian telecom sector in tune with global trends. The grey market tendencies shall be curtailed.

It is envisaged that the customers will ultimately benefit from cost effective and innovative Internet Telephony service. The business model of ISPs will improve without impacting access providers due to increase in the telephony call volumes.

Detailed recommendations are available on TRAI’s website http://www.trai.gov.in/trai/upload/PressReleases/594/recom18aug08.pdf