latest market research report titled VoIP Market in India 2014 illuminates the dynamics in the internet telephony market. Voice over Internet Protocol, popularly known as VoIP, initially witnessed adoption among enterprise users with the objective to reduce communication cost, especially for long distance calls and audio conferences. As smaller companies began to look for business from other countries, the need was no longer restricted among big enterprises. Average Internet speed in India rose to 1.3 Mbps from 1 Mbps in 2012. Advancement in the field of broadband internet service and increased adoption of smartphones, tablets, and PCs led to embracement of VoIP services amongst general consumers.
Security aspects of the VoIP has been one of the primary reasons why Indian regulatory bodies have not authorized unrestricted VoIP in the past, but Telecom Commission has given the green signal to VoIP under the National Telecom Policy 2012; this provides huge opportunity for the VoIP service providers in India. The Government is however looking to mandate the establishment of local servers with the aim of eliminating security breach or misuse of VoIP services. With Q4 2013 posting a 7% quarter to quarter growth of Internet telephony minutes of usage, the market prospect for VoIP services looks prosperous in the coming years.