Recent recommendations of the Trai, if accepted, will connect the 330 million plus mobile and fixed-line phone users to computers and usher in a new era of net telephony. It will also give subscribers freedom to choose a carrier of their choice for STD and ISD calls. There is apprehension that Trai directives are bound to affect the bottomlines of major telcos. In addition to increasing competition among service providers, new formidable competitors such as PowerGrid, RailTel, Sify, AT&T, British Telecom, Gail and Tulip Telecom who have fibre networks in India, are expected to emerge on the overcrowded Indian telecom landscape. But what is forgotten is that the basic concept of Internet telephony has to spread in India, for existing competitors to feel the pinch. A PC is required to take advantage of the STD and ISD facilities; however, PC penetration in India is very low. One also needs a good broadband connection and reliable power supply, all deficient in this country. The stock market seems to believe this is negative for telecom companies. However, I believe the telecom industry still has great times ahead. Here’s why ?
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