VoIP is now legal in Zimbabwe? Econet International Calling Card
Robert Ndlovu - Opinion
Fri, 26 Sep 2008 12:22:00 +0000
IT may appear that some sense has finally been knocked into telecommunications regulation body of Zimbabwe POTRAZ? If developments at Econet wireless are anything to go by, VoIP is now legal in Zimbabwe. Or Is it?
VoIP – Voice Over Internet Protocol is the sending of voice calls over Internet Protocol as opposed to GSM or traditional switched network like PSTN that are relatively expensive.
Zimbabwe allows only local VoIP traffic. Which means a person in Bulawayo can call someone in Harare over the Internet. But up to now it was illegal for anyone in Zimbabwe to make or receive international calls over the internet.
The Chronicle in Zimbabwe , carried an article recently to the effect that, giant Econet was granted a “go ahead” by POTRAZ to operate an international calling card platform in Zimbabwe. This so called ICC runs on VoIP using session initiation platform (SIP) as the signaling protocol.
He said the mobile telecommunications provider was last week granted authority to sell the cards in foreign currency under its new International Calling Card (ICC) platform. The Postal and Telecommunications Regulatory Authority of Zimbabwe finally gave the nod more than a year after Econet submitted an application to implement the system.
“The ICC system is one of our innovative products, developed in partnership with a United Kingdom-based provider where subscribers can purchase recharge cards in foreign currency and use the system to make international calls,” [Econet CEO – Mboweni - www.chronicle.co.zw – September 19, 2008]
For what we know Econet is a GSM wireless , 3G operator and an Internet service provider via Ecoweb in Zimbabwe based on the licenses it was granted by POTRAZ.
The three IAPs — Telecontract, TelOne and Ecoweb — hold the IAP Class B licence, which is an internet licence that allows them to only transmit data using the internet and not voice. Was Econet now granted IAP license class A which allows for VoIP ?
The recent announcement by Econet on their new calling card platform implies that VoIP has been legalized in Zimbabwe. That would be great news indeed .
But is that the case? Is that official? Or it’s only for Econet?
* This ICC platform uses routing of calls over Internet Protocol.
* Outgoing VoIP is illegal according to POTRAZ in Zimbabwe
* Companies in Zimbabwe can call each other over the Internet as LONG as the calls do not leave Zimbabwe.
* When was Econet granted a VoIP license?
* Does this mean companies like Telco with a VoIP license can now originate international traffic ?
VoIP Lawsuit - Econet vs Easi-E-Connect – July 2007
Sometime last year Econet took Easi-E-Connect directors Herbert Rinashe and Irfaan Valera based in Harare to court saying that they had defrauded Econet up to US $ 77,000. Econet claimed that this company was defrauding them by terminating VoIP traffic using the internet and Econet SIM cards. Apparently this company beat Econet in implementing International Calling Card platform and the poor fellows were arrested for being innovative. Easi-E connect did not defraud Econet but were innovative enough to reduce the cost of calling from outside Zimbabwe using intuitive and smart VoIP / GSM technologies .[Source www.thezimbabwean.co.uk – July 7 , 2007 ]
Let me explain what this company was accused and charged of.
Easi-E-Connect used the Internet to receive telephone calls from say UK onto a GSM modem located in Harare. This GSM modem contained multiple SIM cards from Econet. So an overseas a caller calls a certain access number in the UK that will prompt the user to enter a PIN. After a correct PIN has been entered, the system will then prompt the caller to enter a destination number e.g. 0912 444 666, then the call will be routed over IP (internet) directly to a GSM modem connected to the Internet in Harare. Bear in mind this GSM modem in Harare has several SIM cards, legally sourced by the company from Econet. Then after receiving that call over IP the SIM then calls the desired number and the call is connected and people start talking.
This means the call from the SIM card in the GSM modem to any number in Zimbabwe is literally a local call. The time used by these SIM cards was prepaid or post paid for. And Econet felt they had been defrauded !
Call Synopsis – 3 legs
Leg 1 ó Caller in UK calling a local access number, entering PIN, and then entering destination number (the caller has paid local telephone service that he/she pays for monthly)
Leg 2 ó Call travels over the internet from UK and hits GSM modem in Zimbabwe (The calling service provider is connected to the Internet via an ISP and pays for the bandwidth it uses)
Leg 3 ó SIM card in GSM modem then calls the destination number. (The GSM modem owner in Harare pays for his Internet service with his/her ISP and also pays for his/her airtime to the SIM card provider)
“This caused prejudice of US$77 000 to Econet in unlawful converted international incoming calls terminated minutes for the month of June 2007 alone . . . and nothing yet has been recovered," a Harare Magistrates’ Court document read.
Illegality of VoIP
Which of the call legs illustrated above is illegal?
Now Zimbabwe imports diesel from say Saudi Arabia via NOCZIM . In order to reduce the cost of diesel to the end user, NOCZIM will add ethanol to the fuel. This is called blending. Jatropha or ethanol is used for this. This helps cut the cost of the fuel by 20 % and is indeed a great innovative use of technology to reduce fuel costs and also use bio-friendly green fuels !
Now how would you react if BP or Shell in Saudi Arabia takes you to court for diluting their fuel with jatropha or ethanol to produce blend?
I don’t see anything illegal when a company such as Easi-Connect , route voice calls over an IP network in order to cut down origination and termination costs. Hopefully Econet now understands this. By embracing a technology that they took someone to court for, Econet and POTRAZ have sent a good signal to all VoIP practitioners to leverage on the VoIP platform.
This is good news for Zimbabwe as that move will encourage technology companies based in and outside Zimbabwe to aggressively deploy VoIP based services which include but not limited to , Calling card services , Call centers , Virtual telephone numbers , Internet Fax , call conferencing etc.
We live in an extremely dynamic and competitive global village where regulations and fear of competition have been noted as clear obstacles to ICT development and progress in Africa.
Potraz must come clear about VoIP because if they don’t well people will still use it .If Potraz tries to force ISP to block VoIP traffic on their networks , well people can always install VSAT dishes.
Call Centers
Blind restrictions on part of POTRAZ are seriously stifling progress and employment creation opportunities in this fast moving telecoms lane . In Africa countries like SA and Kenya are now new targets for US based companies to provide customer services over the phone by using VoIP.Availability of a call centers is going to play a pivotal role for the tourism industry come SA 2010 FIFA to be held in SA.To be able to handle millions of calls before and during the soccer show case, VoIP enables operators to access cheap and reliable calling plans to contact their potential customers in Europe, Americas and the like.
Zimbabwe is an ideal destination for customer support service centers over the phone as the country has a high literacy rate and people in Zimbabwe have a very high command of the English language. Call center software is available in free open source versions and can be downloaded for free from thousands of websites like www.asterisk.org. Advances in ICT in Zimbabwe can not remain a domain of a special few because of protective and restrictive conditions imposed by a body which has little understanding that restricting VoIP will not work. VoIP runs on open protocols like (IP/UDP/SIP/RTP) and trying to restrict their use will be tantamount in trying to ban technological progress and development in Zimbabwe.
Prohibitive License Fees
This discussion would be incomplete if no mention is made to the prohibitive licenses that POTRAZ is demanding for data licenses and ISP licenses.
POTRAZ is demanding millions of USD $ for one to secure a data license as of February 2007. Surely this is a clear message to prospective telco providers to look elsewhere. Yes they are looking elsewhere by erection of satellites for use for both voice and data. The size of some VSAT is about the same size as the TV satellites that have been deployed all over Zimbabwe to watch outside TV broadcasts like SABC. If POTRAZ continues to make entry into data and voice in Zimbabwe business prohibitive, the mushrooming of data and voice satellites, which cost about $ 2000, will continue unabated.All one needs is a satellite dish installed on site pointing in the right direction into the sky and then activating the data and voice with the service provider.
Flow of information is fundamental to any country’s serious economic growth. But in Africa it appears authorities put all measures they can , to stifle technological innovation.
Zimbabwe is set to witness some very interesting scenarios when returning residents from diaspora, used to high speed access abroad, will be faced with communication challenges on their return. It must be remembered that some of these returning residents have been away from Zimbabwe for more than 10 years and in that period , they have moved in sync with global telecommunications trends.
ICT Penetration Indicators (July 2007 Figures)
Population 12 .2 million (est.)
Fixed telephone lines 343,200
Fixed line density 2.81 %
Mobile lines 1, 001 ,000
Mobile line density 8.2 %
Internet users 1,200,750
Internet penetration 9.84 %
It is clear from the statistics above that fixed line development has not progressed as fast as mobile wireless and internet growth. So there is NO rocket science needed to figure out that any work to increase tele-density in Zimbabwe will revolve around wireless and internet based technologies. Progress is already being made in that direction with Econet being granted a 3G license. Telone has also made moves to increase phone line delivery by use of CDMA wireless solutions as the last mile to connect end users to the Telone telephone network. For now this service is restricted to Harare and Chitungwiza only.
Conclusion & Economic Challenges
Is VoIP now legal in Zimbabwe? By giving a go ahead to the SIP based International Calling Center to Econet; Potraz has sent strong messages to businesses – that yes its OK to implement VoIP in Zimbabwe.
POTRAZ needs to explain to us the criteria used to allow Econet to use VoIP. Because I don’t see any reason why ZOL , Mweb , Telconet , Africaonline and other ISPs can not do VoIP. I used to think that Telco was the one awarded the IAD license A ?
The deregulation of VoIP is long overdue and inevitable .The sooner this is done the better. Other wise the high costs of making calls will force business and organizations alike to adopt other alternatives that authorities might deem illegal. Of course this already happening. Don’t ask me who and where!
Also this time around I am confident that Econet will not take anyone to court for using a technology that they themselves are without a VoIP license for that matter!
We are talk about indigenizing our economy .We can not promote this process of indigenization on one hand and prosecute those who come up with creative solutions on the other.
People do not stop planning because the country is facing an unprecedented economic challenges highlighted by six figure inflation highs and near zero productivity levels. The onus is upon us come up with solutions that relate to our unique position. Nobody but us can help ourselves. Now that it seems political sanity is prevailing with the powers that be, we hope this will translate to deliverables.
Let’s walk the talk.
I have been out of Zimbabwe for a while now and so I would appreciate corrections and pointers to facts that I have raised in this article regarding the legality of VoIP in Zimbabwe.
Comments and questions most welcome.
Robert Ndlovu (IT & Telecoms Consultant)
ndlovu@ifoni.net
New York – USA
Labels: VOIP, ZIMBABWE
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Let's take advantage of VoIP
By Francis Malama, California
Tuesday April 17, 2007 [04:00]
Last week in the Business Post was an article saying communication minister Peter Daka has outlawed VoIP? Folks VoIP is upon us whether we like it or not, if the government and Zamtel do not wake up and smell the coffee.
In 5 - 10 years Zamtel will be no more. At this point VoIP has matured. It’s not a question of whether VoIP is the future. That question was answered a long time ago, VoIP is the future. Zamtel and its government (ZIG) have an opportunity to do one of two things:
Invest in VoIP and change the way Zamtel does business in order to position itself in the new era of communication or sit and wait for the inevitable. If they choose to site, they will find themselves in a far worse situation than ZCCM found itself in.
In USA the big Telco (AT&T, Verizon etc) have decided to join the band wagon instead of fighting the new technological breakthrough in the areas of information technology and telephone. They have started phasing out their redundant PSTN systems and replacing them with new technology.
In the next 10 to 15 years, there will be no PSTN lines in USA. But here in Zambia we have people like Peter Daka leading our technological way to the future with no idea the impact or implications of his statements. Unfortunately, people like him make up more than 80 per cent of our leaders; people with no knowledge of what is going on in the world.
What we should be hearing from him is setting up committees to establish the impact of VoIP on Zamtel and help the ‘geniuses’ at Zamtel to realise the urgency of the matter.
Issuing such threats to people and businesses that are trying to lower their operational costs is in itself providing a false sense of comfort and protection for Zamtel. The Zambian government should start providing leadership in these issues. We all know the government cannot protect Zamtel from itself.
Zambia is a country where the rule of law prevails over personal opinion and preference. Daka may not like VoIP because at the moment it appears VoIP is killing Zamtel.
The Zambian government has no control over the internet. Also there is no law that allows the government to decide on behalf of the internet subscriber how they use their internet connection after paying for it. Putting these two facts in mind, a person with an internet connection can make a call to anywhere in the world using VoIP at 10 times cheaper than using Zamtel phone services.
You tell me if I have an internet connection and I want to call a friend in UK, why should I use Zamtel?
Right now a company does not have to be resident in Zambia in order to provide VoIP to Zambians interested in making international calls.
I’m sure everybody knows that internet is expensive in Zambia because of the unreasonable licensing fee of $40,000 that the government requires for a business to become an ISP. Such measures are counterproductive. Statistics today show that there is seven (7) thousand internet subscribers today in Zambia. Yet we have more than 300,000 internet users.
This means people can’t afford internet connections in their homes but they would rather go to an internet cafe. If the price for the ISP was reasonable like $1,000.00 you would have double the number of ISP’s in Zambia today, the number of jobs created by the internet industry would double or even triple. The number of subscribers would quadruple and for Magande, that’s how you expand your tax base not just by taxing street venders.
Zambia like many third world countries is blessed because it doesn’t have to invent technology, more especially in the high-tech industry. All we have to do is position ourselves to take advantage of the new technologies on which the West has spent so many billions in research and development.
http://www.postzambia.com/post-read_article.php?articleId=25316
Let's take advantage of VoIP
By Francis Malama, California
Tuesday April 17, 2007 [04:00]
Last week in the Business Post was an article saying communication minister Peter Daka has outlawed VoIP? Folks VoIP is upon us whether we like it or not, if the government and Zamtel do not wake up and smell the coffee.
In 5 - 10 years Zamtel will be no more. At this point VoIP has matured. It’s not a question of whether VoIP is the future. That question was answered a long time ago, VoIP is the future. Zamtel and its government (ZIG) have an opportunity to do one of two things:
Invest in VoIP and change the way Zamtel does business in order to position itself in the new era of communication or sit and wait for the inevitable. If they choose to site, they will find themselves in a far worse situation than ZCCM found itself in.
In USA the big Telco (AT&T, Verizon etc) have decided to join the band wagon instead of fighting the new technological breakthrough in the areas of information technology and telephone. They have started phasing out their redundant PSTN systems and replacing them with new technology.
In the next 10 to 15 years, there will be no PSTN lines in USA. But here in Zambia we have people like Peter Daka leading our technological way to the future with no idea the impact or implications of his statements. Unfortunately, people like him make up more than 80 per cent of our leaders; people with no knowledge of what is going on in the world.
What we should be hearing from him is setting up committees to establish the impact of VoIP on Zamtel and help the ‘geniuses’ at Zamtel to realise the urgency of the matter.
Issuing such threats to people and businesses that are trying to lower their operational costs is in itself providing a false sense of comfort and protection for Zamtel. The Zambian government should start providing leadership in these issues. We all know the government cannot protect Zamtel from itself.
Zambia is a country where the rule of law prevails over personal opinion and preference. Daka may not like VoIP because at the moment it appears VoIP is killing Zamtel.
The Zambian government has no control over the internet. Also there is no law that allows the government to decide on behalf of the internet subscriber how they use their internet connection after paying for it. Putting these two facts in mind, a person with an internet connection can make a call to anywhere in the world using VoIP at 10 times cheaper than using Zamtel phone services.
You tell me if I have an internet connection and I want to call a friend in UK, why should I use Zamtel?
Right now a company does not have to be resident in Zambia in order to provide VoIP to Zambians interested in making international calls.
I’m sure everybody knows that internet is expensive in Zambia because of the unreasonable licensing fee of $40,000 that the government requires for a business to become an ISP. Such measures are counterproductive. Statistics today show that there is seven (7) thousand internet subscribers today in Zambia. Yet we have more than 300,000 internet users.
This means people can’t afford internet connections in their homes but they would rather go to an internet cafe. If the price for the ISP was reasonable like $1,000.00 you would have double the number of ISP’s in Zambia today, the number of jobs created by the internet industry would double or even triple. The number of subscribers would quadruple and for Magande, that’s how you expand your tax base not just by taxing street venders.
Zambia like many third world countries is blessed because it doesn’t have to invent technology, more especially in the high-tech industry. All we have to do is position ourselves to take advantage of the new technologies on which the West has spent so many billions in research and development.
http://www.postzambia.com/post-read_article.php?articleId=25314
National development
By George Makubalo, South Africa
Tuesday April 17, 2007 [04:00]
I recently visited Zambia after being away for almost three years. Landing at the Lusaka International Airport immediately brings one home to the fact that one is in a totally different space. Driving through the city confirms one's fears; that far from progressing, Zambia is going backwards.
If a country's infrastructure is an important indication of the progress a country is making - Lusaka tells it all. The once-famed Cairo Road is a pale shadow of its former self. I struggled to find any sign of infrastructural improvements to many of the ancient buildings that litter the town centre. The 'insured' ZNBS building that was gutted by a fire some years ago is now covered with a tapaulin (or whatever material it is) advertising a cellphone company.
Even the beautiful fountains and flower beds at Kabwe round-about on the northern end of Cairo Road are gone. A drive into Kabwe is even more chilling - it's now a dusty, pot-holed town with peeling shopfronts. Surely what has happened to our country?
We have been deceived when reading about Zambia from outside.
A false image of a country recovering from an inglorious corrupt past has been portrayed. We have been told that things are improving. Well, that is not the sense I got during my brief visit.
Zambia is still one of the most under-developed places on earth, and yet some people seem content with the status quo.
They in fact go to great lengths reifying the status quo. I feel it's time we as a country demanded something better because things can be better.
http://www.postzambia.com/post-read_article.php?articleId=25309
Public media reporting
By Concerned citizen
Tuesday April 17, 2007 [04:00]
I would like to add a voice to the current debate on the public media’s unprofessional reporting. In Zambia we allow Zambia National Broadcasting Corparation, Times of Zambia and Zambia Daily Mail to get away with false reporting. There is a lot of hypocrisy and manipulation in news coverage.
And it was all revealed, in the MMD-Katumbi $7m maize scandal. I wonder how VJ will live with his conscience; probably he will get the opportunity to tell the story as it is.
I feel that the coverage of the whole story on VJs interview in Congo DR by the public media was atrocious to say the least. The journalists did this by creating a narrative, trying to cover their ignorance with drama. They wanted to create a personal story around VJ.
The handling of the story was a scandal of huge proportion. It is the responsibility of public media to inform the Zambian citizenry on events as they unfold rather than perpetuate lies.
I would like to thank The Post for their excellent investigative and professional reporting.
http://www.postzambia.com/post-read_article.php?articleId=25310
Truthfulness is vital
By MM,Lusaka
Tuesday April 17, 2007 [04:00]
The most serious benchmark for effective and true journalism is anchored on the Biblical scripture: ‘For we cannot do anything against the truth but for it’. (2 Cor.13:8).
Regarding the distoration of facts by the public media on the issues surrounding the statement by the presidential envoy to Congo DR, Vernon Mwaanga, I advise the Times of Zambia and the Zambia Daily Mail to first establish the truth before they write based on information that may not be true.
Journalism requires establishing a matter in truth. Scribes everywhere are supposed to be professionals who live by telling the truth. Indeed, a soldier dies by the bullet, a professor dies through plagerism, a politician through lies and journalists die by peddling lies. Journalists are always known for sticking to the truth under whatever circumstances.
They are the mirror of society and as such, should show the picture as it is. Allow people to make a perfect judgement. If anything, I would even request ZNBC to get a copy of the video and broadcast it for the whole nation to see. We are not dealing with a small matter.
Even President Mwanawasa is keen to establish the truth. My knowledge of him so far is that he is a man about to effect justice. Once he establishes the truth, he will spare no one, not even the public media heads for misleading the nation. We should know the truth so that we are set free.
COMMENT - How about having a road built by two companies - one on the one end, the other from the other hand. The company that completes their half of the road first and on specification, wins the rest of the contract. Just a thought.
http://www.postzambia.com/post-read_article.php?articleId=25311
Shoddy works on Chipata-Lundazi road
By John Zgambo
Tuesday April 17, 2007 [04:00]
Some 6 months ago, I took a trip for the first time in 20 years to my village in Lundazi. I flew into Chipata and took a car to Lundazi.
This was a nightmare of a drive. But I noticed that there was some work (very shoddy) going on at the time on the road. A few days later, I read in the press an article attributed to Bizwayo Nkunika to the effect that he was happy with the quality of work going on at the time on the same road. I couldn't believe it but realising I am not an engineer, I gave him the benefit of the doubt.
Two weeks ago, I took the same trip again flying into Chipata. This time around I decided to get on a bus because I didn't want to subject a car (even if hired) to the potholes I had experienced earlier.
The trip took us 4 hours and 20 minutes (Less than 200 km) on an RPS bus and clearly the road was in a worse condition than I had seen 5 months earlier and I kept on looking out for any sign of patches that the contractor had done and I could not see any.
Although I am still not an engineer, it is clear that the good works that were done were only for one rainy season
Labels: DEVELOPMENT, GOVERNANCE, VOIP, ZAMTEL
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Minister outlaws VoIP
By Kabanda Chulu
Tuesday April 03, 2007 [10:12]
Communications minister Peter Daka has directed the Communications Authority (CA) to investigate and arrest people allegedly providing commercial Voice over Internet Protocol (VoIP) services. VoIP is a technology that allows people to make voice calls using a broadband internet connection instead of a regular analog phone line.
Currently, there is no legislative framework to guide provision of commercial VoIP services hence the offering of services is considered to be illegal because it is understood that it may threaten the earnings of traditional telecommunications providers.
Surprisingly, the national ICT policy document that was officially launched last week has not mentioned anything related to provisions of cost-saving but effective technologies such as VoIP.
The ICT policy intends to act as a roadmap to guide the nation in the spirit of achieving an information and knowledge-driven society, thereby accelerating sustainable social and economic development as part of the government’s effort to reduce poverty through wealth creation.
Daka, last week urged the CA to be vigilant and investigate allegations of people offering VoIP services.
"This practice is illegal in this country and people doing this should know that there are procedures to follow, I am therefore directing the CA to investigate of people allegedly offering VoIP services and bring these culprits to book," said Daka.
However industry sources and experts, who preferred anonymity, observed that certain regulations were affecting new technologies like VoIP and were actually working against the development goals which the ICT policy seeks to achieve.
The sources argued that technological advances like VoIP would support socio-economic development by bringing the benefits of efficient data network use and lowered costs to individual consumers, small businesses, government agencies and community organisations.
"It is cheap to implement and does not require traditional wire infrastructure and can be used to extend the reach of telecommunications at low cost and this in turn offers an effective channel for the delivery of many development services to under serviced and rural communities, though it may jeopardizes telecommunications profits," sources said.
"However, developing countries and communities with low telephone penetration stand to benefit the most from the introduction of new technologies like VoIP and gone are the days of voice traffic over traditional copper wire (which is often stolen) and cabling for data transmissions."
The sources said developing countries like Zambia must formulate legislature to guide the provision of VoIP services since it was easier to implement with very little infrastructure.
"The biggest problem to application of ICTs as tools for development is lack of investment in infrastructure but there are huge cost savings to be gained in under serviced communities by rolling out technologies that allow for both voice and data services on a single but combined cost effective network," said the sources.
"Moreover, until recently VoIP was only available to people with access to computers, but technological advances are extending this and now people can use a regular telephone handset to dial to an intermediate computer connected to the internet that will convert their call to VoIP."
Nevertheless, the Collaboration on international ICT policy-making for East and Southern Africa (CIPESA) in its 2006 annual report noted that use of these (VoIP) effective, cheap technologies were growing in the sub region though illegally, including in different spheres of government.
The report stated that removing restrictions on application of VoIP and allowing competition to thrive in the communications sector will lead to greater choice, lower prices, and the proliferation of innovative services.
"Their (VoIP) existence is no secret at all because people are using them in their homes and offices and removing restrictions will benefit the development needs of under serviced and rural communities where communication services are prohibitively expensive," it stated.
Notable countries across the continent that have legalized VoIP include Algeria, Mauritius, Mali, Nigeria and Kenya.
Labels: COMMUNICATIONS AUTHORITY, ICT, VOIP
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