VOIP article at Republica Tuesday, July 5th 2011
A lot has been discussed about illegal Voice over Internet Protocol (VOIP) in recent times. VOIP is the technology used in transferring voice signal in worldwide IP network. In Nepal, two years ago close to 80% of INCOMING international traffic into mobile networks was illegal. The VOIP signal is converted into domestic mobile call by using mobile operator’s SIM cards. These practitioners do not have any license, they do not pay taxes and seem to use foreign workforce in Nepal. Losses to legal business of telecom operators and government coffer were counted in millions of USD. As a result of active measures from Mobile Operators and Nepali Police, the grey traffic ratio has gone down close to 15 % and 17 successful raids by the Nepali Police have been implemented. This is exactly how the issue is handled all over the world: regulator gives telecom licenses to reliable players, telecom acts rule the game and if any violations, police holds violators responsible for their actions. At the same time, the quality of international calls has reached a very good level. Thanks to NTA and Nepal Police the process has started and will continue!
Let’s look at VOIP from another perspective. Any consumer having a computer and internet connection can make VOIP calls for free; however will be charged for data connection. Ncell became one of the ISPs (Internet Service Provider) last September, when our fastest internet connection in Nepal called Ncell Connect was launched. Ncell subscribers can use Ncell connect and perform VOIP connection over the world for free and pay only for data connection.
What makes VOIP call illegal?
It is illegal when the VOIP call is terminated into mobile network bypassing International Gateway.
Building up a mobile network is investment intensive (Ncell has announced investment of USD 100 Million in 2011 to its network) and in order to forecast the return on the investment, ISP and Mobile Operator business should not be mixed together. If any ISP is allowed to terminate international incoming traffic into mobile network, it is like someone having a bus ticket from Delhi to Kathmandu could use the same ticket for travelling by boarding to an airliner. Domestic authorities should not regulate international incoming traffic, be it flights or calls, no any consumer in Nepal will get any benefit.
Flight tickets cost more because airplanes cost more than buses and are more expensive to operate. Like mobile network. The killer of mobile business has been the fact that people can talk anywhere, anytime with acceptable prices compared to landlines. But you can make a VOIP call free by sitting next to your computer and expecting your counterpart in Lumbini or New York to do the same. Let us keep the business models separate, let’s guarantee healthy business environment to telecom operators and also make sure that government will get their share of legal business in the form of taxes, frequency fees etc. And consumers can enjoy quality services.
Pasi Koistinen, Ncell
A lot has been discussed about illegal Voice over Internet Protocol (VOIP) in recent times. VOIP is the technology used in transferring voice signal in worldwide IP network. In Nepal, two years ago close to 80% of INCOMING international traffic into mobile networks was illegal. The VOIP signal is converted into domestic mobile call by using mobile operator’s SIM cards. These practitioners do not have any license, they do not pay taxes and seem to use foreign workforce in Nepal. Losses to legal business of telecom operators and government coffer were counted in millions of USD. As a result of active measures from Mobile Operators and Nepali Police, the grey traffic ratio has gone down close to 15 % and 17 successful raids by the Nepali Police have been implemented. This is exactly how the issue is handled all over the world: regulator gives telecom licenses to reliable players, telecom acts rule the game and if any violations, police holds violators responsible for their actions. At the same time, the quality of international calls has reached a very good level. Thanks to NTA and Nepal Police the process has started and will continue!
Let’s look at VOIP from another perspective. Any consumer having a computer and internet connection can make VOIP calls for free; however will be charged for data connection. Ncell became one of the ISPs (Internet Service Provider) last September, when our fastest internet connection in Nepal called Ncell Connect was launched. Ncell subscribers can use Ncell connect and perform VOIP connection over the world for free and pay only for data connection.
What makes VOIP call illegal?
It is illegal when the VOIP call is terminated into mobile network bypassing International Gateway.
Building up a mobile network is investment intensive (Ncell has announced investment of USD 100 Million in 2011 to its network) and in order to forecast the return on the investment, ISP and Mobile Operator business should not be mixed together. If any ISP is allowed to terminate international incoming traffic into mobile network, it is like someone having a bus ticket from Delhi to Kathmandu could use the same ticket for travelling by boarding to an airliner. Domestic authorities should not regulate international incoming traffic, be it flights or calls, no any consumer in Nepal will get any benefit.
Flight tickets cost more because airplanes cost more than buses and are more expensive to operate. Like mobile network. The killer of mobile business has been the fact that people can talk anywhere, anytime with acceptable prices compared to landlines. But you can make a VOIP call free by sitting next to your computer and expecting your counterpart in Lumbini or New York to do the same. Let us keep the business models separate, let’s guarantee healthy business environment to telecom operators and also make sure that government will get their share of legal business in the form of taxes, frequency fees etc. And consumers can enjoy quality services.
Pasi Koistinen, Ncell
I need job in your company... Kidding !!!!
ReplyDeleteNice approach. Thanks for the knowledgeable post. I read it in Republica and came here to say Thanks. I'm a Ncell user but my phone still writes "Mero Mobile". How should that be changed to "Ncell" !!! he he :-)
Cheap mobile internet!!!
ReplyDelete"Any consumer having a computer and internet connection can make VOIP calls for free; however will be charged for data connection. "
ReplyDeleteMobile phone is a computer with internet connection. Use IPhone+Skype... Or get an IP Phone.
Why doesn't the call duration of your system match with the call duration of our mobile device? Why do you show two seconds extra for every call we make and charge accordingly?
ReplyDeleteMr. Pasi
ReplyDeleteyour analysis is right. I am not a purely technician of this sector, just as a journalist i have one suggest to you. I think law is always behind than technology. so for stop totally such illegal VOIP call bypass first of all all Nepalese Voice operator should reduce termination charge. this step may be starting to eliminate such illegal work.I am not going to accept NTA's consultation paper, As that paper if force to all operator that would be economically suffer all voice operator. so please comeon one place all voice operator then make common concept paper. then submit to NTA. I do not agree that police raid is not a long term solution to eliminate illegal VOIP call bypass. Firts of all all voice operator should come same place then need to join hand each other. Thank you for your Blog ! I want to regular useful knowledge from your Blog.
- Ramchandra Bhatta
Cell No: 00977-9803168350
Dear Sir,
ReplyDeleteWe understand its a huge investment but when people know how to use the bus instead of airlines company for the same thing in the same time for less money, there will be no stopping them. Its time for the airlines company to make some changes to its business model and be progressive.
Just my 2 cents.
Why doesn't the call duration of your system match with the call duration of our mobile device? Why do you show two seconds extra for every call we make and charge accordingly?
ReplyDeleteThis is a feature of Worldwide GSM specification and 4 Billion mobile users have the same functionality: first of all the phone watch and billing system watch are not in sync at all, their are two different clocks. After call is ended at the handset, there is still signaling between the operator system and handset: you cannot call again instantly because of this. The operator system is kind of questioning the phone that "have you really ended the call?" When it notices that "yes, call ended", the session is over.(with the delay mentioned) The further away you are from the operator system, more time is needed for this "conversation". Same happens before the call; operator system is updating the phone in the network constantly. Operator system sends a signal to the phone and tells: "call coming" and your phone rings. Again a little delay because of "hand shaking". Actually when switched on, your phone is all the time using operator system (for free). And to be generous, Ncell gave 2068 second free talk time in April:)
Ncell should must start toll free numbers and emergency call like 911, 112,100,101,102 etc for customer's security and better life
ReplyDeleteHello! Mr. Pasi, when will you upgrade the connect speed to 7.2MBPS? Ncell connect current upload speed is very less. Please double the upload speed.
ReplyDeleteThere are other companies who aslo provide good broadband service and are of very quality and low price . but ncell has got its very high rate of its data service. why?dont you think for the users of poor country like nepal the tarrif rate is very very high??
ReplyDeleteAbout data prices: Ncell is the fastest internet connection in Nepal and you can use it anywhere, anytime. This feature I like a lot: if you have cable internet, you have to boot the modem on every power cut. But Ncell keeps on going:) The price has been just recently cut by 50% to 40 paisa per MB when you buy 5000 MB package.
ReplyDeleteAbout 7.2 Mb speed and upload: We are upgrading the network right now and release the higher speed when we can quarantee good service level all around KTM. To my understanding the upload speed is comparable to cable; just got comparison where our speed at a level of 300 kb which in thruth is a "normal" download speed of cable. Generally speaking, users of the Internet consume more than they contribute, that is to say that they download more than they upload. Its set by software in the system to allocate more bandwidth to downloading from a few central sources than to uploading from many. This ensures that networks are able to support the tasks that users most often demand of them, such as viewing websites, watching videos or downloading music, with the best possible performance. It is feasible to set equal download and upload speeds, but that wasn’t the original expectation by the nature of service quality; for example, most users probably don’t want faster upload speeds if it means that it will slow down the time it takes to load a webpage that by current rich website design.
ReplyDeleteWhy don't you follow what the indian operators are doing now? Please introduce per second pulse billing system keeping the present rates. If you remove the present 20 seconds pulse rate and introduce per second pulse we will have to pay for the duration we talk. Your subscribers will be benefitted. We don't have to pay for the seconds we don't use. I hope you understand.
ReplyDeleteI think it would be better if ncell starts its ncell conect data service with unlimited package..
ReplyDeleteIllegal VOIP won't go away as long as there is *money* to make off it. If you remove that advantage it will disappear. Cat-and-mouse game won't stop it. Look at India, they reduced the ILD rates and now they don't have that problem anymore.
ReplyDeleteDear Sir,
ReplyDeleteTell us what is stopping you from giving out unlimited connection? All other ISPs of Nepal give out unlimited connection without data caps.
Also tell us why should the fastest internet in Nepal also be the most expensive? You have a serious advantage here but it seems you are waiting for something? Technology is changing fast like you said, the first phone call in Finland 20 years ago, if you don't grab your chance to become the no 1 ISP in Nepal right now you will loose it to someone who will.
I couldn't be agree with your answer about 2sec. extra timing. I think your system starts the call timing from 3 seconds by skipping first 2 seconds. I came to this through my own experience. Once I noticed that my balance was sufficient only for 1 m and 40s and I didn't hang up the call till the end but your system cut my call at 1m and 38s. If network has to ask whether the call is disconnected or not after a call is hanged up, my call should have been disconnected at 1m and 40s and according to your answer, your system should have interacted whether the call is disconnected or not.
ReplyDeleteWhat if you give us 1 second pulse @ current tariff rate.
ReplyDeleteWhat about POOR gprs and 3g Connectivity outside kathmandu valley...Why Internet is Just less than Worse in janakpur dham,dhanusha ...?Who will answer me?
ReplyDeleteHow much internet data will be consumed using VOIP?
ReplyDeleteAbout the speed and price of internet: it seems that people have accepted our business model in supplying the fastest internet in Nepal. Ferrari costs always more than Skoda:)
ReplyDeleteIn my area there is not network In following area of Dhanusha VDC
ReplyDeleteBengadawar
Dhalkewar 07
Bateshwar
Chitrapur
Naktajhij
nice blog! thanks for the info!
ReplyDeleteVOIP has been widely used as the cheapest way to call anyone locally, nationally and even internationally. It is good to know that there are companies that offer these kinds of services.
ReplyDeleteVOIP is the future of communication. I think telecom companies will have a hard time competing with VOIP based communication.
ReplyDeleteWithout a doubt VOIP is the future of communications, it is just so simple
ReplyDeletehello all good to hear alot and such a knowledgeable and informative blog. I am also a Ncell user and i dont want to bargain over price because as far as I know Ncell Connect is the cheapest in terms of mobile temlecommunication. If we see portability, availabilty and flexibility it is cheapest. For example NTC takes 15paisa per kb which means Rs. 1.50 per 1000 mb with not a good network and 3G coverage in very few places.I think Ncell has given us cheap upto .20 paisa per mb so Ncell should take inititation for strong 3G coverage for places which have 3G and making 3g available in most of the parts of Nepal. IT is ncell that has given us oppurtunity to use the technology and it is Ncell that has made internet in each and every hand mostly. Ncell rocks and I thank it from the core of my heart. And i hpe it will make the network most stong and revised rates in case of mobile data.
ReplyDeleteNice article ..Thanks for the great article.. Such a beautiful article...
ReplyDelete