Elon A Ganor, CEO and chairman of Board, VocalTec Communications Inc

How do you find the VoIP market in India?
A. India is an interesting market in terms of size, tele-density, and potential for growth. With the ILD market being deregulated in India, VocalTec technology perfectly fits in this emerging market because of its cost effectiveness. We are very much committed to this market and we are working very closely with our local partner, the Nirvana Group.

How do you compare the Chinese and Indian markets?
A. The China case is closest to the India market and I fully appreciate the uniqueness and differences between the two markets. I think over the next few years there will be a tremendous growth in India and prices will continue to drop for both ILD and NLD. By reducing the barrier for entry, more and more carriers will come. This will result in an increase in tele-density. Deregulation of the Indian market will help in the development of new technologies.

What is the status of VoIP deployment worldwide and how will India be benefited?
A. VoIP has nearly fulfilled its promise in 2001. Around 6 percent of the world ILD business is transmitted over VoIP equipment in comparison to 3.8 percent in 2000. It is expected that it will reach 10 percent in 2002. VoIP is important and is only second to mobile telephony and is also considered to be among the two most important drivers in the last 50 years. But this is only the beginning. TDMA is not growing but there is a serious growth in VoIP.

For phone services to villages, VoIP can do a great job and help in improving infrastructure in uneconomic areas. VoIP can be deployed in both NLD and ILD space. In the next few years, we will see VoIP deployment by basic service providers leading to drop in prices.

What is the return on investment (RoI) for VoIP on the ILD front?
A. Using VoIP, a serious player can amortize the equipment quickly as VoIP equipment is cheaper than TDMA. Using VoIP, one can quickly change the dialing plan and the routing table as it is much easier in comparison to TDMA.

Any plans on setting up an India office?
A. We will not set up an India office immediately but we will have a local presence through Nirvana Group. We will definitely look for collaborations with system integrators based in India.

How do you look at the future of VoIP?
A. During 1995-96, there was a quality issue but now I can guarantee that voice quality through VoIP is as good as toll quality and even better in many cases. I predict that in not so distant future we can get VoIP of CD quality, something which you can never do in TDMA as one is handcuffed with the 64-kbps paradigm.