Interest in internet telephony is growing in India.

 

Fitch, leading credit rating agency, recently announced that the possible guidelines on voice over internet protocol (VoIP) in national telecom policy 2011 will pose serious challenges to top four operators in India.

 

Indian internet telephony players posted 24.59 percent increase in minutes of usage from their internet telephony business in Q1 ended June 30, 2011 as compared with the previous quarter.

 

Internet telephony players reported 191.77 million minutes in Q1 2011-12 from 153.92 million minutes in Q4 2010-11.

 

Both GSM and CDMA players will feel the heat if the India government opens up internet telephony business in the country.

 

During Q1 2011-12, GSM players reported 344 million minutes of usage, while CDMA players’ minutes of usage was 238 million.

 

According to TRAI, main internet telephony players in India include Apna Telelink, Asianet Satellite Communications, Blazenet, Broadband Pacenet, City Online Services, Cordia LT Communications, Data Infosys, delDSL Internet, Digital2Virtual ISP, Fast Lynx Internet Service, Karuturi Telecom, Mahanagar Telephone Nigam, Manipal Ecommerce, My Own Infotech, Nettlinx, Novanet, Opto Network, Phonic Net, Pulse Telesystems, Sify Technologies, Swastik Netvision Telecom, Swiftmail Communications, Syntel Telecom, Tata Communications Internet Services, Tata Communications, Tata Teleservices (Maharashtra), Trak Online Net India, Trikon Electronics, Tulip Telecom, VIVA Communications, World Phone Internet Services, You Broadband & Cable India and Zylog Systems(India).

 

Fitch Ratings said that the 2012 outlook for most Indian telecommunications operators is negative, as the nationally-owned and six smallest private telcos will continue to suffer operating losses.

 

Revenue of leading operators like Bharti Airtel, Vodafone, Idea Cellular, BSNL, Reliance Communications, Tata, Aircel and MTNL grew 4.01 percent to Rs 34,307.71 crore in Q1 ended June 30, 2011 compared with Rs 32,984.07 crore in Q4 ended March 31, 2011.

 

The total revenue increased 4.43 percent from Rs 34073.79 crore from Rs 35583.54 crore.

 

Fitch expects that the fifth- and sixth-largest operators may manage to break even in EBITDA terms in 2012.