{"id":3932,"date":"2014-12-29T13:48:37","date_gmt":"2014-12-29T08:18:37","guid":{"rendered":"http:\/\/www.bhagwad.com\/blog\/?p=3932"},"modified":"2014-12-29T14:01:08","modified_gmt":"2014-12-29T08:31:08","slug":"voip-charges-time-to-split-airtel-into-2-companies","status":"publish","type":"post","link":"https:\/\/www.bhagwad.com\/blog\/2014\/technology\/voip-charges-time-to-split-airtel-into-2-companies.html\/","title":{"rendered":"VoIP Charges – Time to Split Airtel into 2 Companies?"},"content":{"rendered":"

Airtel’s decision to charge extra for VoIP data compared to others is clearly anti competitive. When Airtel sells us a data package, we are paying for just that – data<\/strong>. Bits and bytes. Bandwidth. That is what Airtel sells, and that is what we use. To make us pay extra depending on how we use that data is illegal. Like your electricity company charging you double the rate for power consumed by televisions compared to that used by other appliances.<\/p>\n

Now Airtel and their supporters are claiming that they need to cover their costs. But what costs? If they are talking about the costs for providing data services, then that’s already taken care of because Airtel anyway charges us based on bandwidth used. There are no other operating costs for them other than providing bandwidth. So applications like Youtube are already more “expensive” for us since they swallow more data.<\/p>\n

Split Airtel into two companies. Let’s call them “Phone” Airtel and “Data” Airtel.<\/p><\/blockquote>\n

No, what they mean by “covering their costs” is that their voice business<\/strong> will be hurt by VoIP. But wait a minute – that is a completely different service altogether! It just so happens<\/strong> that Airtel provides voice calling services along with data services. But just because they do both does not give them the right to unfairly charge one product to subsidize the other.<\/p>\n

On close inspection, this dual business is the cause for the conflict of interest. Airtel is afraid that one product will cannibalize the other, and so it is deliberately crippling data to prop up voice. From their point of view, charging extra for VoIP data compared to other bits is perfectly natural.<\/p>\n

Apart from implementing strong net neutrality laws, there is another alternative. To split Airtel into two companies. Let’s call them “Phone” Airtel and “Data” Airtel. Each will have its own operations, profit and loss accounts, and assets. Structuring things this way will cut the rug from all ridiculous practices like charging extra for VoIP. “Data” Airtel will have no reason to charge extra for VoIP since the profits and losses of “Phone” Airtel are irrelevant to its business model.<\/p>\n

“Phone” Airtel on the other hand, will just have to learn to compete with VoIP on an even footing. Let the market decide which is better – regular phone calls, or VoIP. And if “Phone” Airtel loses business to VoIP, well…that’s too bad. You cannot continue to run the same business when a new technology provides a superior product.<\/p>\n

As for the towers, Internet equipment etc, let “Data” Airtel simply lease them from “Phone” Airtel. In fact, we’ll take things one step further. Make it mandatory for “Phone” Airtel to lease its infrastructure to anyone<\/strong> on the same terms. This will have an immediate impact on the data market and introduce dozens of new players all with an even playing field.<\/p>\n

Now, that’s<\/em> a free market!<\/p>\n","protected":false},"excerpt":{"rendered":"

Split Airtel into “Data” and “Phone” services. Problem solved.<\/p>\n","protected":false},"author":2,"featured_media":3933,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,25,23],"tags":[],"class_list":["post-3932","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics","category-rights-and-freedoms","category-technology"],"yoast_head":"\nVoIP Charges - Time to Split Airtel into 2 Companies?<\/title>\n<meta name=\"description\" content=\"Split Airtel into "Data" and "Phone" services. 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