Voice over Internet Protocol (VoIP) is a broad-spectrum term for a family of communication technologies for deliverance of voice communications over IP networks. Technology is driving competition at the edges. Wireless and VoIP technologies are beginning to put in the hands of consumers, small companies and social activists (easy to install & use, low cost customer premise equipment) the means to connect to IP Networks; at times challenging, at times circumventing and at times changing the regulatory environment. These technological advances are seen in developed countries as opportunities to further facilities-based competition and are welcomed by independent regulators. Competition takes place predominantly in profitable dense urban markets that can sustain several competing infrastructural networks ? mobile, cable, and land lines.



Internet telephony (VoIP) and Wireless technologies are radically transforming the telecommunications sector. By enabling rapid low cost consumption of service to traditionally underserved populations and expanding backhaul and last mile options, wireless technologies are making it easier for new competitors to begin to challenge the traditional dominance of circuit switch operators. VoIP enhances the value of IP Networks and challenges traditional revenue models of incumbents. The two combined, wireless and VoIP, have the potential to inflict havoc with businesses dependent on land lines. Implementation of VoIP is essentially beneficial for reducing communication and infrastructure costs.

Wireless networks enhanced by the ability to provide voice services over the Internet can potentially enable new operators to challenge the dominance of incumbents? land line networks. The VoIP has the ability to transmit more than one telephone call over the same broadband connection. This can make VoIP a simple way to add an extra telephone line to a home or office. VoIP is very valuable to low income users. Some countries see VoIP as an innovative technology that increases competition and a way to lower costs and increase consumer surplus. The US's follows a minimal regulation approach requiring only basic quality standards, such as the provision that VoIP phones be able to connect to the national 911 emergency number.

The situation is quite different in developing countries, where restrictions on VoIP aggravate the development of IP based networks. Regulators are generally weak, lacking independence and often part of a system in which the legacy operator captures the regulatory and political processes. Monopoly operators serving metropolitan markets have faced some challenges mainly from mobile networks. The markets that remain untapped are rural, high cost, low-income and high risk. Serving these markets requires large investments that have not been forthcoming from the private sector. There have been few new entrants on account of the low potential profits, but also because of the high risks and obstacles associated with penetrating a weakly regulated market dominated by a monopoly.

As the popularity of VoIP grows, and PSTN users switch to VoIP in increasing numbers, governments are becoming more interested in regulating VoIP in a manner similar to PSTN services. VoIP can facilitate tasks and provide services that may be more difficult to implement using the PSTN. In India, it is legal to use VoIP, but it is illegal to have VoIP gateways inside India.