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July 17, 2015

Reliance Jio Said to be Considering VoIP License, Free Calls May Not Follow


By Steve Anderson
Contributing TMCnet Writer

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Net neutrality isn't just an issue for the United States, as reports suggest that the government of India is also looking to uphold such principles as well. With that in mind, word recently emerged about Reliance Jio's plans to pick up a new license, but it may not go as far with it as some might hope.


Reliance Jio reportedly has plans to pick up a voice over Internet protocol (VoIP) license, a move that will give the broadband service provider access to a new set of services. Since Reliance Jio—formerly Infotel Broadband Services Limited—provides its services via LTE (News - Alert) connectivity, there's something of a clear reason to bring in VoIP services.

However, there was one note made that will likely prove friendly to government regulators, if not so much to the potential users of Reliance Jio services; the company might not offer free calling via VoIP services. Plus, some have pointed out that there could be some issues involved as traffic migrates to VoIP players who can offer up free calling, but file it under slight data charges, a development that would be a problem for more traditional voice service providers.

A research note from Bank of America Merrill Lynch noted that Reliance Jio doesn't really have a traditional voice offering, and a voice over LTE (VoLTE) options may not be mature right away, so it becomes reasonable enough that Reliance Jio might seek a VoIP license. With net neutrality principles weighing in the region, free calling would likely be out of the question. It's possible, though the report doesn't see it as a realistic possibility. Throw in recent reports that official panels on net neutrality are starting to look seriously at regulating domestic calls on chat apps like Skype, Viber and WhatsApp and the idea of free calling from Reliance Jio seems like a very long shot.

Image via Shutterstock

Licensing, meanwhile, does seem to be an option for Reliance Jio—as the research note suggests—because it's a “home grown” over the top (OTT) provider. Current OTT providers like the three mentioned earlier may pass up such licensing efforts as such firms aren't telecom service providers, and thus may not be interested in making exceptions for just one country. But local providers like Reliance Jio, meanwhile, may allow such companies to gain influence and function accordingly.

In the end, companies like Reliance Jio must work within the structures established by current law, and that means working to principles of net neutrality and seeking licenses where need be. It would be easy to say that it's inefficient to do things this way, or that the Indian government might be unnecessarily muddying the waters by establishing principles that would be difficult to enforce and might be ignored anyway. Some have already pointed out the potential risks of “illegal VoIP traffic,” since VoIP traffic is tough to monitor anyway.

While this may not be the ideal situation, it will be up to the Indian government to make changes accordingly. For now, meanwhile, companies like Reliance Jio start looking at licenses to keep within basic government statutes.




Edited by Eric Adams
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