The Internet Service Providers (ISPs) claim that they can offer free local calls in case of own network (that is, within the network of a particular internet service provider) and 10 paise per minute for calls on other IP network. "ISD call rates can further come down to 50 paise per minute on same IP network, and in other IP network 75 paise. And if you want to call on a mobile or fixed line from an IP phone, STD call rates can be offered at 50 paise per minute," the ISPAI claims. The association has members such as Sify, Net4, HFCL, HCL Infinet, RailTel, Spectranet and Tulip IT Services.

Currently, STD call rates on mobile networks are about Re 1 per minute while local rates range from 80 paise to Rs 1. Operators such as Airtel and Vodafone charge Re 1.50 and Re 2.75 per minute for a STD call whereas a call from India to the US or UK costs cheaper at 95 paise per minute, or lower through the internet protocol (IP) telephony. The same call to the US or UK through a mobile cost Rs 6.40.

Interestingly, many telecom operators currently route their domestic calls through the IP network. Says ISPAI president Rajesh Charria, "As admitted by

many operators, they are routing the call through the IP networks and still charging exorbitant call rates." Global giants such as Google, AT&T, Cisco, Microsoft and Nortel are backing the ISPs in their demand for allowing unrestricted IP telephony.

It's interesting to note that IP telephony in most developed markets such as the US, Singapore is unregulated, resulting in drastic fall in call rates. For instance, a $2.5 (Rs 100) calling card offers a 30 minute call to India from US which comes to a per minute rate of Rs 3.33 for an ISD call from US to India. Whereas in India, the mobile operators offer the same call at double the price for a call to the US. Some others offer India calling at 4.2 cents per minute or Rs 1.60 per minute, almost one-sixth the ISD rate offered by operators in India.