Navigating Regulatory Approvals for Internet Telephony

Internet telephony has transformed how we communicate, allowing voice calls to travel over data networks instead of traditional phone lines. But as this technology evolved in India, it brought with it a unique set of regulatory challenges. While the promise of cost-effective communication is enticing, understanding the approval landscape is crucial for anyone looking to deploy internet telephony services.

The regulatory framework for internet telephony 🔗

India’s approach to internet telephony regulation has been shaped by concerns about revenue protection, security, and fair competition. The Telecom Regulatory Authority of India (TRAI) distinguishes between different types of voice-over-IP services based on how they connect to public networks.

Internet Service Providers (ISPs) can offer internet telephony, but with restrictions. PC-to-PC calls within India or abroad are permitted without special approvals. However, connecting these calls to India’s Public Switched Telephone Network (PSTN) or Public Land Mobile Network (PLMN) requires compliance with specific licensing conditions and technical requirements.

Who needs approval and why 🔗

The need for approval depends primarily on whether your equipment connects directly to public networks. Telecommunication equipment that interfaces with India’s PSTN or PLMN must obtain Equipment Type Approval (ETA) from the Wireless Planning and Coordination (WPC) wing or the Telecommunication Engineering Centre (TEC).

Service providers holding Unified Access Service (UAS) licenses, Cellular Mobile Telecom Service (CMTS) licenses, or Basic Service Operator licenses can provide internet telephony services. These operators already have the necessary approvals for network interconnection. For ISPs wanting to offer internet telephony with PSTN connectivity, the path involves partnering with National Long Distance (NLD) operators who act as intermediaries.

Equipment approval requirements 🔗

When equipment directly connects to public networks, formal approval becomes mandatory. The Mandatory Testing and Certification of Telecom Equipment (MTCTE) scheme covers 55 types of telecom products. This certification ensures that equipment doesn’t degrade network performance and that radiofrequency emissions stay within prescribed standards.

Testing occurs at laboratories designated by TEC, and certificates are issued based on test reports. The process involves checking conformance with essential requirements specific to each equipment type. Products connecting to the Indian public network must apply for telecommunication approval issued by TEC, which maintains Essential Requirements (ER) for different equipment categories.

The approval process 🔗

Obtaining equipment approval involves several steps. Manufacturers or their Authorized Indian Representatives must submit applications through the MTCTE Portal. Testing must be performed by local Conformity Assessment Bodies (CABs) or Mutual Recognition Agreement (MRA) accredited CABs. TEC staff review the details and communicate provisional ERs to be applied during testing.

The TEC Certificate has a five-year validity period. After obtaining the certificate, products must display TEC’s official label containing the certification approval number and model identification. This certification requirement applies to gateways, adapters, and other devices that bridge internet telephony with traditional phone networks.

Connection scenarios and technical requirements 🔗

Different connection scenarios carry different regulatory implications. Voice calls between two VoIP phones (IP-to-IP) in the same or different geographical locations are generally permitted without special approvals, as these remain within managed networks. However, calls from VoIP to PSTN gateways must originate and terminate in the same geographical area to comply with TRAI regulations.

The restriction against mixing PSTN and VoIP traffic stems from toll bypass concerns. Regulators want to prevent scenarios where calls that should be charged as long-distance calls instead travel as local calls through VoIP networks. This means a call passing through a PSTN gateway cannot connect directly via WAN to a VoIP phone in a different geographic location.

Interconnection through NLD operators 🔗

For ISPs wanting to provide internet telephony with PSTN connectivity, the solution lies in working with NLD operators. These operators are permitted to connect to ISPs through public internet (Internet cloud) to facilitate termination of internet telephony calls on PSTN/PLMN and vice-versa, both within and across telecom circles.

The NLD arrangement simplifies the interconnection model. ISPs don’t need multiple point-of-interconnection agreements with various access providers. Instead, they maintain a commercial agreement with an NLD operator who handles the interface with traditional networks. This approach reduces rollout time and infrastructure costs while maintaining regulatory compliance.

Security and lawful interception requirements 🔗

Security concerns play a major role in approval considerations. Every service provider intending to offer internet telephony within India must install Lawful Interception (LI) equipment that meets requirements stipulated by security agencies. Pre-clearance of LI equipment by security agencies is required before services can begin.

The Department of Telecommunications will not allocate number resources to ISPs until they obtain security clearance for their LI equipment. This requirement ensures that law enforcement agencies can monitor communications when legally authorized, similar to obligations under traditional telephony services.

Encryption levels are also regulated. ISPs must ensure encryption conforms to license provisions, currently limited to 40-bit encryption unless higher encryption keys are deposited with the licensor. These measures balance privacy with national security concerns.

Country-specific regulations and compliance 🔗

India’s regulatory approach differs from many other countries. While nations like the United States, United Kingdom, and Singapore have adopted lighter regulatory frameworks for internet telephony, India maintains stricter controls to protect traditional telecom revenue streams and ensure security.

The current framework prohibits voice communication to and from telephones connected to PSTN/PLMN using E.164 numbering within India for most internet telephony providers. This restriction prevents what regulators call “toll bypassing” where international or long-distance calls could be routed as local calls through internet gateways.

Know Your Customer (KYC) compliance 🔗

Recent directives have made KYC compliance mandatory for all internet telephony services using mobile numbering series. The Department of Telecommunications issued guidance requiring full verification of all end-users before service activation, applying the same KYC protocols required for cellular mobile services.

This includes proper verification procedures even when physical SIM cards aren’t deployed. Internet telephony providers must maintain records of subscriber information, implement proper verification mechanisms, and ensure compliance with data protection requirements.

The current state of approvals 🔗

As of now, no specific approval regime exists exclusively for internet telephony service provision beyond the existing ISP licensing framework and equipment certification requirements. However, formal approval is required for equipment that directly connects to public networks through the MTCTE scheme and related certification processes.

Service providers must ensure their infrastructure complies with security requirements, lawful interception capabilities are in place, and equipment meets technical standards. The emphasis is on maintaining network integrity, protecting user data, and preventing unauthorized interconnection with traditional phone networks.

For businesses considering internet telephony deployment, the key is understanding which connection scenarios apply to their use case. PC-to-PC communication requires minimal regulatory intervention. Phone-to-phone services through managed networks fall under existing telecom licenses. Services bridging internet telephony with public networks trigger equipment approval requirements and must follow the NLD interconnection model.

What do you think? Do India’s current internet telephony regulations strike the right balance between protecting traditional telecom revenue and encouraging innovation? Should the approval process be simplified to promote wider adoption of internet telephony services?

References

1. https://www.trai.gov.in/sites/default/files/2024-09/recom18aug08.pdf
2. https://typeapproval.com/india/
3. https://www.nemko.com/product-certification/mtcte
4. https://ib-lenhardt.com/type-approval/india
5. https://community.cisco.com/t5/ip-telephony-and-phones/trai-india-regulations-regarding-voip/td-p/2704100
6. https://iclg.com/practice-areas/telecoms-media-and-internet-laws-and-regulations/india
7. https://corpbiz.io/learning/telecommunication-service-authorization-rules/
8. https://globalvalidity.com/india-kyc-compliance-now-mandatory-for-internet-telephony-providers/