TRAI favours Internet calls on phones

NEW DELHI (Reuters) - The Telecom Regulatory Authority of India (TRAI) has recommended that calls made over the Internet be allowed to be received on telephones rather than just computers, a move that would increase competition in the fast-growing telecom market.

The telecoms regulator said Internet telephony was quite popular, even though the country has just 11 million Internet subscribers compared with about 326 million mobile and land-line phone connections.

"There seems to be complete market failure as our subscribers are denied advanced value-added services in contrast to world scenario where such Internet-based services are very popular," the regulator said in its recommendations to the government.

At present, India restricts direct connectivity of Internet telephony with phone lines. Internet telephony service providers generally offer cheaper call rates, encouraging businesses such as call centres to use their services.

"Customers will ultimately benefit from cost effective and innovative Internet Telephony service," it said.