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VOIP to be Made Illegal in India 258

Krish writes "Providers like Skype, Yahoo, Net2phone, Dialpad, etc. will not be able to offer VOIP in India under the proposed govt. clampdown. BPOs and other call centers will face the axe if they use any of the VOIP services provided by the above companies. It is not clear if this clampdown will affect regular home users."
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VOIP to be Made Illegal in India

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  • by zappepcs ( 820751 ) on Thursday December 07, 2006 @12:26AM (#17141624) Journal
    of the uninformed to try to control what they have no clue about in order to protect outdated and now irrelevant business models... sigh
  • by Atlantis-Rising ( 857278 ) on Thursday December 07, 2006 @12:30AM (#17141658) Homepage
    The short answer: Tax money. VIOP providers were not paying it, so the government is making them illegal.
  • by Atlantis-Rising ( 857278 ) on Thursday December 07, 2006 @12:32AM (#17141678) Homepage
    ...that 'outdated and irrelevant business model' would be the government, seeing as they are, according to TFA, pissed off that the VOIP companies are not paying their taxes.
  • Satyagraha (Score:2, Insightful)

    by elronxenu ( 117773 ) on Thursday December 07, 2006 @12:51AM (#17141828) Homepage
    Time for some peaceful resistance, I think.

  • by Anonymous Coward on Thursday December 07, 2006 @12:53AM (#17141846)
    Here's the British Government:

    Government: You're illegally calling people.
    You: No, that's e-mail.
    Government:Turn over the cryptographic keys so that we know it's email, or spend the next 30 years in jail.

    (that's right, in UK it's a crime to not turn over your cryptographic keys/passes.)
  • by Maxo-Texas ( 864189 ) on Thursday December 07, 2006 @01:16AM (#17142010)
    It used to be very expensive to build phone lines so they charged to make phone calls.

    Since they charged a large amount of money, it was convenient to put a tax on that charge.

    VoIP is basically free. If you want to pay someone for higher quality you can but there are so many ways to talk via voice over the internet now it's insane. I can't see how the indian government is going to do this against private individuals any more than they can stop porn, drugs, sex chat, etc.

    I think they can make businesses use taxable voip, but data is data for private people.
  • by Atlantis-Rising ( 857278 ) on Thursday December 07, 2006 @01:20AM (#17142036) Homepage
    You've never heard of proposals to tax work done in video games? The theory is, work is being done, and value is being accumulated from it. Therefore, that value should be taxable.

    That is, after all, how taxes work.
  • by Somegeek ( 624100 ) on Thursday December 07, 2006 @01:31AM (#17142112)
    [...]like we have in the US where the FCC regulates and taxes VOIP providers.
    When did that start happening?
    In June. http://news.com.com/FCC+approves+new+Internet+phon e+taxes/2100-7352_3-6086437.html [com.com]
  • Re:FUCKIN-A YEAH!! (Score:2, Insightful)

    by raju1kabir ( 251972 ) on Thursday December 07, 2006 @01:45AM (#17142198) Homepage
    • America is really a pretty xenophobic place, generally hostile to most everything non-American
    • America is deeply conservative and fearful of change.
    • The American educational system penalises innovation and creative thinking.
    • American politics are always parochial. If a proposal doesn't somehow poke a stick in the eye of those bastards in the next village/city/state/country, then it's not going to pass.

    Sorry, I don't live in the USA, so your clever riposte falls a little flat. But I've worked there too, and it's pretty clear that your points don't stand up.

    I cannot think of a country that rewards innovation and creative thinking more. Or one that's borrowed more liberally from the people, ideas, and other strengths of the rest of the world.

    While there can be an ugly us-vs-them aspect to politics, especially the speechmaking, it is a fact (amply demonstrated by the success of many policies) that genuinely productive solutions quite often win out.

  • Re:Oh the irony... (Score:2, Insightful)

    by Harmonious Botch ( 921977 ) * on Thursday December 07, 2006 @01:55AM (#17142254) Homepage Journal
    But now we are less likely to because at least one part of call center expenses in India are going to cost MORE now. The more I think of this silly law, the more I like it.
  • by Somegeek ( 624100 ) on Thursday December 07, 2006 @02:03AM (#17142298)
    VoIP in the US is not taxed.
    We are not yet actively paying the tax, but the FCC regulations have been in place since June '06 and the day is approaching. Unless Congress does something to block it. From what I have read I agree that the current regulations do not affect P2P VoIP like Skype to Skype.
  • Re:Funny as hell (Score:5, Insightful)

    by smallpaul ( 65919 ) <paul@@@prescod...net> on Thursday December 07, 2006 @02:52AM (#17142512)

    Actually, when I read this, I couldn't help but laugh at all of the dumb companies that thought that they could save money by investing in [India]

    There is no question that companies are saving (and making) money by investing billions in India. A few VOIP taxes are not going to change that.

    [India] is still, essentially, a third world country.

    Nobody said otherwise. India is a developing economy. You have a very strange understanding of economics if you think that you cannot make money in a developing economy. Look at the bushfulls of money that have been made in the last 50 years in (e.g.) Korea, Saudi Arabia, Ireland, China, etc.

    They should've realized that a few McDonald's and a rudimentary grasp of English doesn't make a country a first world country, (a good place to do business).

    Rapidly growing economies are precisely where you go to do business.

    I hope the backwater Indian government continues to tax "outsiders" in their own provincial way so that these stupid companies will learn their lessons.

    America's backwater government also taxes "outsiders" in a provicial way. Haven't you heard about Bush's protectionism: http://www.progress.org/2003/trade12.htm [progress.org]

    I think that India has a LONG way to go before it should be considered as any kind of technological powerhouse, and I think that this is a strong sign that that is true.

    India's software industry alone is worth $20 billion. Tata infotech took 23 years to make its first billion and 23 months to make its second. Is that a powerhouse comparable to the American industry? Probably not. Does it matter? India's tech industry is strong, healthy and growing, no matter how much you might wish otherwise. Save your schadenfreude for someone who deserves it. You might want to read this to learn what's really going on in India: http://www.economist.com/business/PrinterFriendly. cfm?story_id=5300960 [economist.com]

  • Re:FUCKIN-A YEAH!! (Score:2, Insightful)

    by FishWithAHammer ( 957772 ) on Thursday December 07, 2006 @03:03AM (#17142582)
    And finally you Slashdot editors; do show some signs that you have some brain by not ranking absolute trash as insightful just because Indians have stolen some American jobs.

    "Have some brain" yourself - moderators, not editors, called it "insightful."
  • Also, (Score:4, Insightful)

    by The Cydonian ( 603441 ) on Thursday December 07, 2006 @03:04AM (#17142594) Homepage Journal
    India is really a pretty xenophobic place, generally hostile to most everything non-Indian.

    The thing that really struck me the most in "new" India, all those malls and food courts and stuff, is how prevalent Chinese food is, among other things. Granted, Indian Chinese isn't quite Chinese as I know :-D, but I've travelled to Hong Kong and throughout most parts of South East Asia, and I don't think I've seen the reverse happening.

    India's opening up faster than most ex-pat Indians realize.

    India is deeply conservative and fearful of change.

    We've got the world's largest twenty-something population. Half the country is my age, 24.

    The Indian educational system penalises innovation and creative thinking.

    Which of the twenty-seven or so educational systems are you talking about? If it is the CBSE or the ICSE, then you'd be hardpressed to explain why they follow it in some schools here in Singapore, or in West Asia and southern Africa, in Tanzania, Kenya and, I understand, South Africa. The educational system per se isnt soul-ripping, but the competition is; never, however, doubt the intent of some of the better designed systems.

    Indian politics are always parochial. If a proposal doesn't somehow poke a stick in the eye of those bastards in the next village/city/state/country, then it's not going to pass.

    :-)

    I take it that you haven't worked with these lobbyists? The problem with Indian politics is that it's a huge superset of local politics glued together somehow under the Indian tricolour; the difficulty is in having a larger picture, or in convincing folks to look beyond their backyards. I doubt anybody is malicious though, in their intent; there is a lot of good work being done, albeit slowly. I think we're about to hit the corner in a year or so when folks start demanding action at a national level as well.

    Tough work, but there are reasons to be optimistic. All is not lost.

  • Frankly, it's nothing at all like self-incrimination, either legally or logically.

    It's exactly like self-incrimination, both legally and logically. Law enforcement in the U.S. can seize the keys under a subpoena, but there is no requirement that you tell them where they are. In fact, the fifth amendment specifically allows someone not to answer any question for fear of self-incrimination. The question, "Where/What are the encryption keys?" would fall under that umbrella as it would potentially provide evidence against you. The police might as well ask, "Where did you hide the illegal drugs?"

    There's a reason why the first words out of an officer's mouth when making an arrest are, "You have the right to remain silent, anything you say can and will be used against you in a court of law..." In other words, you should truthfully provide only your identity to the police, then act as if you were a mute from there on out.

    Wire-tapping is more like search and seizure. Law officers can tap the line with court authority in order to seize your communications. However, you still have a free right to use a phone scrambler to hide your communications. It may look suspicious, but there would be little the police could do about it. (Most likely, they'd bug your handset.) Of course, if you're relying on scrambling or encryption provided by, say, your cell phone company, then you're in trouble. Since the cell phone company would not be under investigation, they would be legally required to comply with a court order to turn over the encryption keys. Failure to do so would get them slapped with an "obstruction of justice" charge.

    Disclaimer: IANAL, but I have stayed at the Holiday Inn Express.
  • Re:Oh the irony... (Score:2, Insightful)

    by RatRagout ( 756522 ) on Thursday December 07, 2006 @03:39AM (#17142822)
    Great solution. Ban everything that is good, instead of doing an effort to provide something better. A billion people should be able to come up with something at least as good rather quick, but they're probably busy doing their daytime job for Skype or Yahoo...
  • by TheLink ( 130905 ) on Thursday December 07, 2006 @04:45AM (#17143170) Journal
    "Gather a mob, shoot the bureaucrats between the eyes" "The world would be a better place if this happened more frequently."

    Really? It already happens a bit too frequently, and the world is a worse place for it.

    Typically it's the mob leaders who don't mind killing people who end up in power (because the "other options" end up dead - doh). And that's how people like Mao, Saddam Hussein, the leaders of Syria, Sudan, etc rise to the top - their opponents either get killed, jailed, or exiled. And that is why Karl Marx's Communism dreams tend to end up as nightmares - because he suggested violence as a means to communism.

    If you keep doing that once in a while if you get lucky you get a benevolent dictator or a dictator who somehow thinks that democractic elections are a good idea.

    But what are the odds? If you end up in such a scenario it may be better to just wait (leave or stay) and hope that the dictator picks successors who are less violent (which has a higher chance of happening, since the dictator will want to eliminate threats - e.g. others like him). Then when the time is right you make a move for mass civil disobedience - NOT violence and hope the soldiers will disobey as well.
  • by Nasarius ( 593729 ) on Thursday December 07, 2006 @04:51AM (#17143196)
    Irrelevant. Read the damn Constitution. It only protects you from being forced to testify against YOURSELF. Skelton is in jail for refusing to give information about SOMEONE ELSE.
  • Comment removed (Score:5, Insightful)

    by account_deleted ( 4530225 ) on Thursday December 07, 2006 @05:38AM (#17143440)
    Comment removed based on user account deletion
  • Re:Oh the irony... (Score:5, Insightful)

    by jamesh ( 87723 ) on Thursday December 07, 2006 @06:37AM (#17143720)
    To businesses, call centers are "cost centers", and accordingly should be as cheap as possible. If they can make the same amount of money with cheaper call centers, they will. If customers don't care, they won't care.

    That bit about customers not caring is so true. But as soon as you start spending money outside of your community (village/city/stage/country), it's gone.

    People go and buy imported goods (and services now it seems) because they save a few dollars, and then bitch and moan because another factory has closed down and they're out of work. It's your own f*cking fault people!!! If you're lucky enough to live in a country that protects working conditions, then ffs don't go and buy stuff from a country that doesn't. You're only ripping yourselves off.

  • Re:Oh the irony... (Score:4, Insightful)

    by anothy ( 83176 ) on Thursday December 07, 2006 @08:25AM (#17144206) Homepage
    i agree with this, but with a caveat.
    If a company cares about customer service, they will hire (for their United States customers) support staff that can properly service someone who speaks the US variety of English.
    this is true and vital, and plenty of companies have learned it, or are learning it now. but note that there's absolutely no reason why that person can't be Indian and in India. there are plenty of language schools in India that turn out people who're entirely fluent in english, including the american dialect.
    my experience working with engineers in India is that there's basically two ways companies can go about building a dev team in India. first, you can hire good engineers who cost aroudn 1/2 to 1/3 of what they'd cost in the US, and have at least roughly comparable skill levels. second, you can hire warm bodies who're engineers on paper, and you can get them for 1/5 to 1/10 of what similarly warm bodies would cost in the US. if whoever's in charge of hiring there understands that people are not fungible assets, you've got a good chance of getting a useful and productive team in India; if not, you're more or less screwed. my experience with customer support (other than as a customer) is more limited, but i have no reason to believe it's not the same there.
    i work with a guy who says things like "an indian could never understand me", where "understand" means "relate to". he gives examples of things like understanding baseball. wtf do i care if the customer support rep on the phone knows who won the Yankees game last night, regardless of where they are? there's legitimate points about language barrier and cultural differences impacting effective communication, and then there's flimsy rationalizations for stinking racism.
  • Re:FUCKIN-A YEAH!! (Score:3, Insightful)

    by dvNull ( 235982 ) on Thursday December 07, 2006 @08:50AM (#17144354) Homepage

    Some broad generalisations that I will stand behind:

            * India is really a pretty xenophobic place, generally hostile to most everything non-Indian.
            * India is deeply conservative and fearful of change.
            * The Indian educational system penalises innovation and creative thinking.
            * Indian politics are always parochial. If a proposal doesn't somehow poke a stick in the eye of those bastards in the next village/city/state/country, then it's not going to pass.



    Those are some pretty broad generalizations. I would wager you probably have never spoken to an Indian (outside of level 1 tech support), read or even seen anything about India on TV. Its almost like me saying "All Germans are Nazis, All French are cowards, All Brits have bad teeth, and All Americans are war mongers." India has a large number of foreigners who are visiting/live there and almost every place I have been to in India have been extremely friendly to foreigners. Calling India xenophobic basically tells me that you have absolutely no CLUE about India. You other points except for the education issue (which I will agree needs to be improved in helping students explore and find out rather than memorize), your other points are just as laughable.

    Hell I am of Indian origin, and I get frustrated by Indian tech support people. Then I realized that the only difference is that if it was not outsourced, I would get an American who has no power to do anything, who has no access to information beyond what I could get from the web and who has the critical thinking skills of a muffin. I go through this every time I have to call up any company regardless of whether the tech support is in India or the US. 99% of level tech support read from a script and thats it. Just politely ask for level 2 and you should get someone competent either from the US or whatever country they outsourced to. But then again you knew that. It is just more handy to blame Indian people. Even if the people were from Philippines or Malaysia, the responses would still be the same not due to the people but due to the tech support policies implemented by the companies. i.e Only so many minutes on the phone, read from a script etc.

  • Re:Oh the irony... (Score:1, Insightful)

    by Anonymous Coward on Thursday December 07, 2006 @01:05PM (#17147820)
    Or maybe you can use your superior infrastructure, education system, etc to produce something useful enough that people in other countries will buy it from you.

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