BANGALORE: Despite being confined to closed user 
            groups (CUGs), IP telephony is gaining rapid momentum in India and 
            is expected to cross 1 lakh units mark this year. The industry 
            forecasts a 250 per cent year-on-year sales growth in IP phones.
            V Pradeep, MD of ABS India, formerly Alcatel 
            Business Group, says most corporates are now embracing IP 
            environment for their new telephone deployments. In most cases, the 
            upgradation is from analogue to IP phones as India has a small base 
            of digital phones. 
            
            
            He said once the Indian government allows the 
            interconnection between IP phones and PSTN and mobile phones, the 
            growth would be phenomenal. "TRAI is working on the modalities for 
            interconnection. Globally also, this regulation is going away in 
            most countries," he added. IP telephony penetration is estimated at 
            over 10 per cent globally. 
            
            Karthik Natarajan, MD of Snom, an IP phone 
            vendor, says, "Besides big enterprises, there are signs now of 
            medium-sized companies going for IP phones because of benefits such 
            as scalability, ease of use, stability and improved productivity." 
            
            
            Some reports suggest that IP telephony a $10 
            million market in 2002, estimated to be $39 million in 2003, will 
            grow up to $270 million by 2008. The vendors like Cisco, Nortel, 
            D-Link and Snom are active in the Indian IP phone market. The market 
            here is dominated by SIP (session initiation protocol)-based phones, 
            while the IP telephony providers like Sify, Net4India and VSNL are 
            sinking big bucks in building SIP platforms. 
            
            Some observers have dubbed SIP as the protocol of 
            the future for VoIP, saying it is more Web-centric and can support a 
            wide range of voice and communications programmes than other IP 
            telephony protocols such as H.323 and media gateway control protocol 
            (MGCP).