World Phone to offer intl calls at Rs 1.60/min

International long distance callers will now be able to make calls to the US at local call rates.

World Phone, a joint venture between the US-based World Phone Inc and two Indian entrepreneurs on Thursday kicked off a price war with the launch of its VoIP-based (Voice over Internet Protocol) calling cards which allows subscribers to make a call to the US at just Rs 1.60 per minute.

At present, a VoIP-based call to the US is priced around Rs 4 per minute. Such a service is offered by companies including Net4India and Sify. With more and more players getting into the fray, the call rates are expected to become cheaper.

At present, the VoIP market in India is estimated to be around $125 million or Rs 560 crore accounting for around 2.5 per cent of the annual ILD turnover.

With the basic and cellular service providers offering ISD calls at rates ranging between Rs 8 to Rs 14 per minute, companies offering Internet telephony at much lower prices are gaining market share.

"There is a large, unpenetrated market for our services in India. We intend to expand the market for VoIP-based telephony by offering the cheapest price for the best quality of service," Aditya Ahluwalia, chairman, World Phone, told Business Standard.