Lower rate of Interconnection Usage Charge (IUC) is expected to affect the cloud telephony space in India.
Aniketh Jain, CEO at Solutions Infini, said to Telecom: “There is a price slash from the government on IUC which impacts our business; we have to reduce the cost for the customers, consequentially operating with thin margins.”
According to Solutions Infini, the government plans to reduce IUC to 0 by 2020, causing an issue for the customers, because it will expose customers to spamming and unwanted calls.
Jain added: “The quality of calls is a big problem which has not improved over time.
“Currently the only regulation that applies to cloud telephony is UCC (Unsolicited commercial communication) but there is a need for some legal or policy framework.
“Firms operating in cloud telephony buy large network capacities from telecom operators on which they build their own applications and then those applications are given to the customers as service.”
Jain noted, In India, cloud telephony could create 3-4 million jobs by 2020, where the current number stands somewhere less than 2000 in the entire industry.
The industry is also expecting the New Telecom Policy 2018 to address regulations and guidelines related to cloud telephony.
Written by Leah Alger