Skype refutes Trai charges

The Nasdaq-listed Skype has clarified that it is not a service provider nor a grey market operator, but is a software application allowing users to communicate free over the internet. The company, in its reply to the consultation paper on 'Review of Internet Services', stated that inclusion of Skype as a "grey market foreign company" was not correct.

The company was a software application allowing users to communicate through Voice over Internet Protocol (VoIP), it said, adding Skype had no operations in India, provided no equipment and did not own any network.

The company is responding to a statement by the Telecom Regulatory Authority of India (Trai), which had mentioned Skype as a grey market company. The regulator, in its consultation paper on December 27, 2006, stated that companies such as Skype, MSN and Messenger were offering IP-based telephone services without paying the licence fee to the government.

The regulator had said: "Loss of revenues, unlicensed operation by certain firms and depleting market share of licensed operators are some of the reasons which necessitated a review of policy of internet services and ISP licensing conditions." Trai had sought views from stakeholders about its consultation paper.

The US-based company sells 'SkypeIn' -- a number which allows the user to communicate over the internet using Voice over Internet Protocol. A 'SkypeIn' is being provided for either three or 12 months. SkypeIn is available in 14 countries. It is not available in India. The regulators of these countries have framed rules regarding the use of Skype software.