DTS plans to launch internet telephony

The department will offer a new long distance telephone service using the internet technology called voice over internet protocol (VOIP) at a less expensive tariff over conventional STD/ISD services, he said, adding, it was not to beconfused with internet telephony in which voice is transmitted through internet.

For the mobile service, the department has begun implementing a pilot project using C-DOT (Centre for Department of Telematics) technology. The service would be extended to over 60 cities across the country in a year’s time, Saran said. The pilot project costing Rs 45 crore would be able to handle 30,000 lines in the four states. Major cities planned to be covered under the project include Hyderabad, Chennai, Calcutta, Patna, Madurai, Coimbatore and Vijayawada. He said the department has received approval from the government for the Sankyavahini project and works have been commenced to set up the high speed network connecting all educational institutions in the country.

Saran said a tender would be floated this month for VOIP implementation in New Delhi, Calcutta, Mumbai, Chennai, Bangalore and Pune. "The cost of the project is expected to be to the tune of Rs five crore," he added.

He said this service would be launched asa separate on eat a cheaper tariff since the quality was not expected to be on par with conventional STD/ISD where packet switching’ technology was being used. Saran said the date for submitting bids on selection of international consultants for corporatisation of DTS has been extended by a fortnight to February 21 as there have been lot of queries from the prospective participants.

DTS would also offer voice mail service during the financial year beginning April 1 in 54 major cities covering all state capitals and major cities. The department has placed orders for supply of equipment for setting up the national internet backbone connecting 45 cities and the project is expected to be executed by March.

A high speed optical fibre system criss-crossing 50 cities is being planned. This would be able to carry 30,000 voice channels at a time, he added. DTS would implement wireless in local loop (WLL) technology in both rural and urban areas. In rural areas, one lakh lines of equipment would be installed thisyear, followed by eight to 10 lakh lines in the coming years.

EEB adds: Meanwhile, the situation in public sector MTNL’s revenue growth has worsened. Throughout the current year and earlier the company has been witnessing a slowdown in revenue growth on the back of falling tariffs; especially on long distance telephony. For the first half MTNL reported a 4 per cent fall in profit and this was expected to be the trend for the rest of the year. However, in Q3 the profit after tax has grown by 7% while the topline has dipped marginally.

This situation of declining margins, depressed topline and falling profits has arisen as a result of the phased reductions being made in telecom tariffs, over a period of two or three years. In the first phase there has been a 23-25% cut in long distance domestic telephony rates. Domestic long distance telephony provides close to 60% of MTNL’s revenues. "Telecom traffic volume ideally should have picked up with the reduction in tariffs but have not done so as yet," said ananalyst.