South Africa politicos restrict VoIP, WiFi -- and pay the price

[Declan McCullagh <declan () well com>]

[More precisely, the price is paid by the South African general public 
who have fewer jobs and fewer opportunities. Somehow I suspect the 
politicos won't suffer the consequences of their economically backwards 
actions as described below. Politicians who live off of the wealth of 
others (that is, through taxes) rarely do. --Declan]


-------- Original Message --------
Subject: RESTRICTING VoIP AND WiFi COSTS SOUTH AFRICA ITS POSITION AS A 
 TECHNOLOGY LEADER IN AFRICA
Date: Tue, 25 May 2004 15:27:35 +0200
From: media <media () bridges org>
To: declan.mccullagh () cnet com

Dear Declan,

Following the current media swirl in the US relating to the FCC
decisions on
VoIP and the WiFi issue in Africa, bridges.org have written a short
commentary looking at the benefits of this technology in relation to the
developing world. We thought you might
be interested in this.

If you would like any further information please do not hesitate to
contact
me.

RESTRICTING VoIP AND WiFi COSTS SOUTH AFRICA ITS POSITION AS A
TECHNOLOGY LEADER IN AFRICA

25 May 2004
Commentary written by bridges,org in collaboration with the East and
Southern Africa Centre for
International ICT Policy (ESA-CIP)

South Africa is celebrating ten years of democracy -- a period during
which the country has shown progressive leadership, including explicitly
targeting information and communications technology (ICT) as an enabler
of socio-economic development.  In its re-election campaign this year,
the Government promised to focus on poverty alleviation and job
creation. But, ironically, the Government's legislative efforts
affecting new technologies like Voice over Internet Protocol (VoIP) and
Wireless Fidelity (WiFi) are actually working against the development
goals it seeks to achieve.

On one hand, the South African Government has taken unparalleled steps
in forming national and international advisory councils to advise
President Mbeki on how to extend the benefits of ICT to all citizens.
However, existing telecommunications and convergence policies are not
keeping pace with technological progress, and communications costs
remain high as a result.  Moreover, the Government has failed to provide
a coherent legislative framework for ICT.  Unless the Government aligns
its intentions and actions it may undermine the country's position as a
technology leader in Africa.

One example is South Africa's strategy to create jobs by enticing
international call centres to the country.  These centres -- common in
places like India -- provide outsourced services using high bandwidth
connections and VoIP platforms.  VoIP converts calls to data and carries
them like messages on any data network (including the Internet), which
lowers costs, but can threaten the earnings of traditional
telecommunications providers.  Call centres provide telephone support
services to developed countries from their bases in developing countries
where labour is cheap, bringing cash to local economies. VoIP can also
support socio-economic development more generally by bringing the
benefits of efficient data network use and lowered call costs to
individual consumers, small businesses, government agencies, and
community organisations.  Yet existing legislation that limits the use
of VoIP in South Africa stifles advances in this area.

South African law also inhibits the use of WiFi technologies that could
help bring the Internet to under-serviced communities.  WiFi creates a
high-bandwidth network using certain radio frequency transmissions that
cover short distances.  It is cheap to implement, largely because it
does not require traditional wire infrastructure, and can be used to
extend the reach of telecommunications and "backbone" Internet
connectivity at low cost.  And this in turn offers an effective channel
for the delivery of many development services to under-serviced and
rural communities.  But it also jeopardises telecommunications profits.


Developing countries and communities with low telephone penetration
stand to benefit the most from the introduction of new technologies like
VoIP and WiFi.  Gone are the days of voice traffic over traditional
copper wire (which is often stolen), and separate cabling for data
transmissions. 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, combined, cost-effective
network.  Moreover, until recently VoIP and WiFi were only available to
people with access to personal computers, but technology advances are
extending this reach.  For example, WiFi can be used to connect handheld
devices to the Internet.  And instead of requiring a computer with VoIP
software, 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.

Across the continent, other African countries are moving to the
forefront. Algeria, Mauritius, Mali, Nigeria and Kenya have legalised
VoIP and WiFi.  For example, the Algerian Government recently approved
several Internet Service Providers to use VoIP to legally compete on
international calls. Prior to this, only the incumbent
telecommunications operator was allowed to offer international call
services, costing six times more.  These progressive governments are
boldly embracing new technologies to gain the long-term benefits of ICT,
despite potential short-term losses in revenue as incumbent
telecommunications providers restructure their approaches.

Currently, the provision of VoIP services in South Africa is only
allowed in areas where less than five percent of the population have
access to a telephone.  The Government maintains that such restrictions
will encourage companies to provide telephone service to these outlying
regions and thereby rectify the imbalance in technology access between
modern, urban hubs and under-serviced and rural communities.  WiFi is
also restricted to use by individuals or organisations within the
confines of their own premises.  So "hotspots" are okay, but connecting
offices across town is not.  In South Africa, it appears as if
Government policy-makers either do not understand the development
potential offered by these technologies, or they are just not ready to
let go of the entrenched revenue streams from Telkom's stranglehold on
the market.

Nonetheless the use of these effective, cheap technologies is growing in
South Africa -- albeit illegally -- including in different spheres of
government.  For example, local government agencies are connecting
remote departments with WiFi networks that are well-suited to carry VoIP
calls.  Their existence is no secret, with public tenders in the local
media calling for the installation and maintenance of these systems.

Removing restrictions and allowing competition to thrive in the
communications sector will lead to greater choice, lower prices, and the
proliferation of innovative services.  This will in turn benefit the
development needs of under-serviced and rural communities, where
communication services are prohibitively expensive, as well as the
corporate needs of businesses wanting to enter the value-added network
market. All that is holding back the unlimited provision of VoIP
services in South Africa is the public announcement of a date, at the
Minister of Communication's discretion, from which VoIP will be legal.
This is a seemingly easy step, yet one not taken. Consequently, business
leaders, development practitioners and the ordinary consumer alike are
suffocating under an artificial constraint on telecommunications growth.


And in the meantime the South African Government, with all its right
intentions, is increasingly losing its position at the technological
forefront in Africa. An apparent reluctance to embrace new technologies
must not be allowed to hinder the creation of jobs and wealth for the
people of South Africa.  Every citizen should understand the
socio-economic development potential of new technologies, and call upon
the Government to drive the changes needed to allow their widespread
use.  Unless the South African Government alters its course in this
area, during the next election voters may well be asking why the
Government has not delivered on its promises.

ENDS

CONTACT DETAILS
Name: Ewan McPhie, Policy Director
Tel: +27 (0)21 465 9313
Fax: +27 (0)21 465 5917
Email: media () bridges org
URL: http://www.bridges.org <http://www.bridges.org/>
South Africa: PO Box 715, Cape Town, 8000, South Africa
United States: PO Box 53099, Washington DC 20009-9099


ABOUT BRIDGES.ORG
Bridges.org is an international non-profit organisation based in South
Africa with a mission to promote the effective use of ICT in developing
countries to improve people's lives. One area of focus is informing
policy decisions that affect people's access to and use of ICT.
Bridges.org also conducts technology research and provides social
consulting services to ground level projects using ICT, helping with
project planning and evaluation and relaying lessons learned.  It brings
an entrepreneurial attitude to its social mission, and is committed to
working with, instead of against, government agencies and the business
community.  For more information please go to www.bridges.org
<http://www.bridges.org/> .


ABOUT ESA-CIP
The East and Southern Africa Centre for International ICT Policy
(ESA-CIP) is a regional non-profit organisation based in Uganda
dedicated to increasing the capacity of East and Southern African
stakeholders to participate in international ICT policy-making.  The
Centre forms part of the broader Catalysing Access to Information and
Communications Technologies in Africa (CATIA) programme, which aims to
enable poor people in Africa to gain the maximum benefit from the
opportunities offered by technology and to act as a strong catalyst for
reform. It is being supported by the UKs Department for International
Development (DFID). For more information, see http://www.catia.ws
<http://www.catia.ws/> .




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