Ringo app looks into legal issues as telcos cry foul

Ringo app, which was forced to halt its domestic calling facility temporarily after telecom operators protested, said its legal team was looking at the possibilities about whether the firm flouted telecom licensing rules. “We hope to resume the services very soon,” said a company source.

The firm, which lets users make international and local calls at 19 paise per minute and is 90 per cent discount to telecom companies, had to suspend its operations a few days after its launch due to protests from telecom operators. The firm said it has not received a legal notice from government authorities.

Telecom Regulatory Authority of India on Thursday said it will look into the complaints filed by the telecom companies.

The app does not use web technologies. Rather, it buys bulk minutes from aggregators such as Tata Communications and Verizon and with help of codes, converts each mobile call into landline call to avoid interconnect usage charges and, therefore, is able to provide calls at 19 paise per second.

In a mobile voice call, telecom operators pay each other 14 paise per minute for using other’s network. However, for calls originating and terminating at landlines, there is zero interconnect charges. The move was introduced earlier this year to encourage landline usages and Ringo took the advantage of this new norm, according to technology website techpp.com.