The Government is however looking to mandate the establishment of local servers with the aim of eliminating security breach or misuse of VoIP services.
Burgeoning broadband penetration and rising mobile device adoptionin India drives the demand for VoIP. Voice over Internet Protocol, popularly known as VoIP, initially witnessed adoption among enterprise users with the objective to reduce communication cost, especially for long distance calls and audio conferences. As smaller companies began to look for business from other countries, the need was no longer restricted to big enterprises. Average Internet speed in India rose to 1.3 Mbps from 1 Mbps in 2012. Advancement in the field of broadband internet service and increased adoption of smartphones, tablets and PCs led to embracement of VoIP services amongst general consumers.
This report, VoIP Market in India 2014, provides qualitative analysis of the major drivers and challenges affecting the market.
Security aspects of VoIP have been one of the primary reasons why Indian regulatory bodies have not authorized unrestricted VoIP in the past, but the Telecom Commission has given the green signal to VoIP under the National Telecom Policy 2012.This provides huge opportunity for the VoIP service providers in India. The government is, however, looking to mandate the establishment of local servers with the aim of eliminating security breaches or misuse of VoIP services. With Q4 2013 posting a 7% quarter to quarter growth of Internet telephony minutes of usage, the market prospect for VoIP services looks prosperous in the coming years.
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