Law Ministry Turns Down TRAIs Proposal To Regulate PC To PC Internet Telephony

The Law Ministry has nuked TRAI’s recommendation of allowing foreign internet telephony firms to register in India and host their services in the country. The recommendations sought to get foreign firms to be regulated and pay a license fee. But according to the archaic Indian Telegraph Act, 1885, registration alone wouldn’t bring the firms under the ambit of Indian law. Among three reasons why this isn’t possible cited by Financial Express, one major hurdle cited is the 74% FDI and Indian laws not being applicable for companies being governed by the laws in the country of establishment.

Nikhil adds: The TRAI had recommended that scope of