Within the same LAN, it is legal.

You can transfer incoming PSTN lines over IP to any point within your network. You can even transfer over WAN to an office in another SDCA.

On the outbound front, you can't initiate a call using a PSTN port in another SDCA. So, you can't use SIP over your WAN and use a PSTN port in Bangalore to initiate a local call in Bangalore. You'd have to use your local PSTN port and dial long distance to Bangalore.

The rules are easy to understand once you know the motivations of the babus. Their corporate overlords told them IP calling should not impact revenue. And so, anything that effects the revenue of Airtel, BSNL, etc., is not allowed. That said, for incoming calls, they don't care if you forward a PSTN call over IP - over a LAN, or over WAN even internationally.

On 12/28/11 8:37 AM, Raj Mathur (राज माथुर) wrote:
On Wednesday 28 Dec 2011, Arjun Venkatraman wrote:
[snip]
A SIP client that can :
1. Forward incoming calls on a GSM/CDMA (GSM only will do, but CDMA
only will not) line to a SIP number at a proxy on the same LAN
Wouldn't that be illegal without a VoIP licence in India?

Regards,

-- Raj

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