Zoom seeking VoIP licence indicates organisational shift in India: Experts

Zoom Video Communications has sought approval from the government of India to launch its Zoom Phone services in India, according to media reports

Communication platform Zoom Video Communications Inc. seeking approval from the government for its “Zoom Phone” VoIP (Voice over Internet Protocol) service indicates a shift among Indian organisations towards usage of collaboration tools like video conferencing, say market analysts.

According to media reports Zoom Video Communications has sought approval from the government of India to launch its Zoom Phone services in India. The company declined to comment on Business Standards questions.

Experts point out that this will bring Zoom in direct competition with Microsoft and Cisco as well as some of the free alternatives such as Whatsapp calls and Skype.

Cisco unit Webex India, earlier this year in September, became the first OTT player in the country to secure a telecom licence. This is coming at a time when the Indian government has asked over the top communications players to get a licence to continue providing calling services.

Nishant Bansal, Senior Research Manager, Telecom, IDC Asia/Pacific says that since the consumer space already has players like WhatsApp, Skype, etc., the market is much smaller, which will make in-roads in the consumer market difficult.

“The market remains in an enterprise space to capture. If Zoom is able to provide service quality guarantees to enterprise customers, then they should be able to capture some of the market,” he added.

Faisal Kawoosa, founder of Indian research firm Techarc believes that Zoom can capitalize on its large user base who might provide an inlet for the Zoom Phone service in consumer markets. “Even as things go back to pre-pandemic levels, Zoom is still being used a lot for calls. The hybrid model is still operational among many organizations. People would need a VoIP service for using Zoom’s audio capabilities.”

However, the service is more tailored to fit enterprises rather than consumers, he added.

According to Bansal, Indian organisations are increasingly turning to collaboration tools including video-conferencing to streamline workflows and engage employees, partners as well as their customers.

“Collaboration solutions have been highlighted by Indian enterprises as their top ICT investment priority over the next 12 months and Zoom Phone, along with the broader Zoom collaboration portfolio, could help organisations accelerate this move to support and empower an increasingly mobile and connected workforce,” he said.

According to a recent survey by Fortune Business Insights, the increasing trend among companies regarding accepting intelligent meeting solutions for remote working offers business growth opportunities.

The market is projected to grow from $17.15 billion in 2021 to $40.79 billion in 2028 at a CAGR (compound annual growth rate) of 13.2 per cent during the 2021-2028 period, the global team collaboration software market size was $15.25 billion in 2020, said the Team Collaboration Software Market Forecast, 2022-2028.

There is another view on Zoom’s need for a licence in India. Kawoosa believes that Zoom seeking this licence is a cost-cutting attempt.

“Currently, if you want to use Zoom’s dial-out telecom services, the service provider for the same would be in the US. This is not very cost effective for Zoom users in India. Without the licence, Zoom presently cannot offer VoIP services, even for B2B usage,” he said.