The Telecom Regulatory Authority of India has allowed Internet Service Providers (ISPs) to provide unrestricted telephony over the Internet. The move would enable consumers to call on landlines and mobile phones via their Internet connections. Believe it or not, till now Indian consumers could make Internet calls to other people on the Internet only.

The move is likely to drive down the cost of long distance calls — both STD and ISD. In an already competitive market that has some of the lowest tariff rates in the world (you can talk for a minute on a local call for a cent), carriers will come under some more pressure to make revenues. Nevertheless, for consumers like you and me, it is celebration time as the regulator has just opened doors to even cheaper calling tariffs!