Algeria moves ahead of SA in VOIP stakes

Johannesburg, 29 Mar 2004

Algeria appears to be on the brink of legalising voice over IP (VOIP), according to a report on pan-African Web site, Afrik.com.

This follows an experiment begun in January 2003, in which the Algerian regulator authorised VOIP use by Internet service providers (ISPs) on an experimental basis, although it was only a limited licence and did not pose a threat to fixed-line incumbent, Alg'erie Telecom, and the country`s GSM operators.

However, last week the Algerian government drew up a decree stipulating that only a simple authorisation would suffice to give the dozen or so experimental ISP VOIP operators the go-ahead on a fully-authorised basis.

Should the Algerian government go through with this, it would effectively put an end to the monopoly of Alg'erie Telecom and the GSM operators, as they would face legal competition on international charges that are currently six times higher than those offered using VOIP.

It will also place Algeria alongside Mauritius, which has given the green light to three VOIP services, and Mali, whose incumbent operator has signed agreements with four companies to offer such services.

Kenya Telkom has also been trying to find a way of setting up VOIP services with both cyber-cafes and ISPs.

Locally, all that is required for value-added network service (VANS) providers to be allowed to carry voice traffic is for minister Ivy Matsepe-Casaburri to fix a date from which it will be considered legal by way of notice in the Government Gazette.

"Should the minister actually set a date for this, it would be a huge shake-up for local communications - it would turn the industry on its head and certainly result in lower tariffs," says Ray Webber, spokesman for the Communications Users Association of SA (CUASA).

"Hopefully the minister will look at this soon, as it is a concern for us when countries that are perhaps regarded as less technologically developed than us are actually starting to move ahead of SA in terms of progressive legislation."

He says that while VOIP is generally an inferior quality service to that provided by a PSTN network, CUASA has always believed that people should have the choice of whether or not to use it.

"It would only become an issue if there was obvious overcharging from the PSTN operator. If there was a huge disparity in the tariff structure, people would be more liable to choose a lower quality service in order to save money," says Webber.

"Of course, making it legal would also result in consumers getting their fingers burnt by unscrupulous operators, so it must be handled carefully.

"The telecoms industry in SA has hardly evolved since the Telecoms Act was promulgated and it is obviously in dire need of an overhaul, although we remain hopeful that the Convergence Bill will do just that," he says.

Last year, the Internet Service Providers Association (ISPA) called on the minister to set the date for the legalisation of VOIP - among other issues - as a means of resolving the crisis surrounding the still-to-be-licensed second national operator.

"The options are all hardwired into the Telecommunications Act, all that is required is for the minister to okay them and set a date," said ISPA`s Ant Brooks.

"Such a move would immediately increase competition for Telkom, as it would allow VANS operators to set up their own infrastructure, rather than relying on Telkom, and it would give them more flexibility in terms of bundling of services."