tatasky_2006
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NEW DELHI: Peer-to-peer calling app Ringo has blocked its domestic calling services launched last week, after service providers allegedly paused offering the back-end support.
The app, which launched very low-cost local calling at 19 paise a minute to anyone across India including those who do not use the app, said in a statement that it had stopped services and it working to resolve the situation.
"We will be pausing Ringo Domestic calling rollout until such time that we resolve this issue," Bhavin Turakhia, CEO of Ringo said in a post on the company's website, adding that none of the domestic calls were going through and they would have to get intervention from relevant regulatory authority to unblock it.
"We believe we are on the right side of the law and hence expect a favorable resolution in due course of time," he added. Ringo did not give a time frame of when the service will be back up but said it will seek clarity from service providers.
Ringo buys bulk minutes through aggregators that are further connected to carriers or carriers that sell wholesale minutes, and use call flow technology via a conference bridge based out of Mohali that connects both the caller and recipient of the call.
Ringo's service uses networks of mobile phone carriers instead of the Internet, or data-based calling like most messaging and calling apps, which in turn allows users to make local, STD calls from anywhere in the country.
The service is a fully legal, compliant service, and follows all aspects of the DoT and TRAI regulations, the company added.
The total call cost is 90% cheaper than calling rates offered by existing telecom service providers and 25% cheaper than most popular internet-based calling apps, the company had said.
However, the bedrock pricing only adds to challenges for telecom companies which are seeing increasing pressure on voice business due to stiff competition from rivals, sequential fall in data realisation rates and continuing threat from messaging apps such as Whatsapp that offer free voice calls on telcos' data networks.
"While we are already concerned on the impact from competition in traditional telco networks ( RJio) and OTT voice players, players like Ringo present a new threat to the sector in our view," Credit Suisse said in a note to clients last week. "The freebies and discounts offered are eerily similar to the customer acquisition tactics of e-com/Fintech world," it said while advising investors to 'stay cautious' on the telecom sector.
Ringo suspends local calling service, alleges non-cooperation from telecom companies - The Economic Times
The app, which launched very low-cost local calling at 19 paise a minute to anyone across India including those who do not use the app, said in a statement that it had stopped services and it working to resolve the situation.
"We will be pausing Ringo Domestic calling rollout until such time that we resolve this issue," Bhavin Turakhia, CEO of Ringo said in a post on the company's website, adding that none of the domestic calls were going through and they would have to get intervention from relevant regulatory authority to unblock it.
"We believe we are on the right side of the law and hence expect a favorable resolution in due course of time," he added. Ringo did not give a time frame of when the service will be back up but said it will seek clarity from service providers.
Ringo buys bulk minutes through aggregators that are further connected to carriers or carriers that sell wholesale minutes, and use call flow technology via a conference bridge based out of Mohali that connects both the caller and recipient of the call.
Ringo's service uses networks of mobile phone carriers instead of the Internet, or data-based calling like most messaging and calling apps, which in turn allows users to make local, STD calls from anywhere in the country.
The service is a fully legal, compliant service, and follows all aspects of the DoT and TRAI regulations, the company added.
The total call cost is 90% cheaper than calling rates offered by existing telecom service providers and 25% cheaper than most popular internet-based calling apps, the company had said.
However, the bedrock pricing only adds to challenges for telecom companies which are seeing increasing pressure on voice business due to stiff competition from rivals, sequential fall in data realisation rates and continuing threat from messaging apps such as Whatsapp that offer free voice calls on telcos' data networks.
"While we are already concerned on the impact from competition in traditional telco networks ( RJio) and OTT voice players, players like Ringo present a new threat to the sector in our view," Credit Suisse said in a note to clients last week. "The freebies and discounts offered are eerily similar to the customer acquisition tactics of e-com/Fintech world," it said while advising investors to 'stay cautious' on the telecom sector.
Ringo suspends local calling service, alleges non-cooperation from telecom companies - The Economic Times
