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Internet telephony offers a new outlook for the Indian consumers and also leads a new opportunity for the internet service provider market in India. The entry of private sectors in the International Long Distance market will cut the existing call rates by half. The quality of service offered by Internet Telephony is not similar with PSTN but the rate advantage in favor of internet telephony currently, far outweighs the quality advantage PSTN lines can offer.

Users who have free, or fixed-price Internet access, Internet telephony software essentially provides free telephone calls anywhere in the world. Internet telephony does not offer the same quality of telephone service as direct telephone connections. There are many Internet telephony applications available such as Cool Talk and NetMeeting, with popular Web browsers. Internet telephony products are sometimes called IP telephony voice over the internet or voice over IP products.

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