The Department of Telecommunications (DoT) may open up the Internet telephony segment and permit consumers to make unrestricted calls using their internet connections. This may be included in the New Telecom Policy, which is expected to be finalised by November 2011.

In 2008, the Telecom Regulatory Authority of India (TRAI) had recommended allowing unrestricted internet telephony to all operators, including internet service providers (ISPs), without imposing any additional entry fee or licence charge. However, DoT had rejected the proposal at that time on grounds that it would disrupt the level playing field with incumbent mobile operators who paid Rs 16.50 billion as entry fee.

If unrestricted net telephony is permitted, it will enable players such as Reliance Infotel, to offer voice services, besides data. Under existing rules, only operators with unified access services licence are allowed to offer unrestricted internet telephony.

Operators who do not hold unified access licences are permitted to offer internet telephony services for international calling and PC-to-PC domestic calls. Removing the restrictions will allow all broadband players rolling out fourth generation (4G) technology based networks to compete in the voice market.

It will also permit companies like Sify, Tulip Telecom and Net4India to offer consumers the facility to make long-distance and local calls.