The opposition to allow VoIP will not only come from private basic service providers but also from the government's own DoT And VSNL which expect a drastic fall in their revenues. Apart from the revenue aspect, a number of technical, regulatory and policy aspects will have to be cleared before internet telephony can be legalised in India. On the policy front, this would necessitate fresh amendments to the second telecom policy formulated earlier this year, which banned VoIP services.

Secondly, regulation of voice and data traffic carried over a seamless network like the internet is nearly impossible. For instance, at present telecom carriers share revenue for international calls between themselves on the basis of settlement rates. "How will revenue be generated and shared on the internet," said a senior official of a telecom company. Third,experts suggest that the technology driving VoIP is yet to reach a stage where it could offer the same quality of voice as available over existing landlines. In addition, private basic telecom investors are nervous over the impact of VoIP on their revenue projections, given the fact universally long distance traffic is the real money spinner.