The A-Vo-Id Lobby led by Airtel has resorted to am onslaught on VoIP [Skype, Viber, etc] consumers by deciding to charge for Voice & Video Traffic separately at a much higher rate than prevailing 3G / 2G mobile data rates violating the Net Neutrality unilaterally. The fine print suggests that the customers would instead have to pay pay-as-you-go rates (4 paise per 10 KB for 3G, 10 paise per 10 KB for 2G; 17X/52X more expensive than the respective 3G/2G 1 GB packs on a per MB basis) for data used on VoIP calls (both incoming and outgoing).
What is the Cost of VoIP Calls vs Normal Calls ?
The math – a VoIP voice call, depending on which codec the VoIP service uses, takes anywhere between 0.5 and 1 MB of data per minute of call. Effective call rate on pay-as-you-go rates, on 3G, would work out to Rs 2-4 per minute versus prevailing local/STD outgoing tariff of Rs 0.5-1.5 per minute for legacy voice. Under the data packs, the same VoIP call would cost Rs 0.13-0.25 per minute
Telecom operators’ discomfort with OTT applications rendering them dumb pipes is widely known. Even in India we have seen discussions at an industry/regulatory level on how to balance the value-capture more fairly between the OTT players and telcos. OTT here stands for over-the-top services like Skype, WhatsApp, Viber, etc., It signals a defensive mindset where Airtel is pretty much accepting the threat of revenue cannibalization from OTT voice.
How are Vodafone & Idea Party to the Airtel’s Evil Move ?
The Airtel, Vodafone and Idea Cellular telecom lobby have entered into 3G Intra Circle Roaming arrangements in circles where each of the players do not have 3G spectrum of their own. For example, if an Idea cellular customer in Bangalore [Karnataka Circle] were to make VoIP Skype call, he’ll end up using the Airtel 3G network where Airtel Bills Idea and the same gets passed on to the Idea customer. Is the Reciprocal also True in Other Circles where Airtel is at the mercy of Vodafone / Idea, like say in Gujarat ? Whether Idea / Vodafone charge or not, and if Airtel continues to do so on VoIP calls, the greed will be percolate to both of these for sure and then the new challenger, Reliance Jio Infocomm will have to disrupt the market in mobile data.