Trai needles low-cost calling apps; errant telcos smile

With telecom operators up in arms against low-cost calling apps like Ringo, the regulator Trai on Tuesday said it is examining the issue and will come out with suitable action to address their concerns. "Trai has suo-moto taken cognisance of the service of the said application (Ringo). We are examining it and take suitable decision soon," Trai Chairman R S Sharma said.

Low-cost calling apps like Ringo are offering service at nearly 90 per cent cheaper rates than telecom operators. However, domestic call services of Ringo were blocked in the same week it started operating.

Ringo is learnt to have been using Quadrant Televentures' network, a subsidiary of Videocon Telecom, for providing service. The company said it has permit for providing teleconference services and uses it along with other technology to connect calls. Bharti Airtel Chairman Sunil Mittal had expressed concerns on the service of Ringo in presence of Telecom Minister Ravi Shankar Prasad on December 1, alleging that Ringo is "gaming this system" which will hurt mobile industry. 

Mobile operators are already facing challenges in voice business as consumers are switching to messaging apps like Whatsapp that offer free voice calls too. Moreover, operators have started providing unlimited free calls from landline to any network across the country by charging low monthly fees.

Ringo said its services are legal and are compliant with regulations. The firm is working on a "favourable resolution in due course of time", it said. In spite of being fully-compliant with the law, "the service allegedly seems to have been blocked on November 30 without any notice to our service providers", Ringo said.

In response to a question, Ringo CEO Bhavin Turakhia said, "We have been in constant touch with TRAI and other parties, and have provided feedback and explanations as required during our discussions." He said that Ringo will abide by any and all policies that the government comes up with. "We welcome any progressive policy that will help consumers and the industry," he said.