Significant benefits for telecommunications service providers

"The latest telecommunications regulatory announcements by government provide significant benefits for telecommunications service providers, and could not have come at a better time," says Rodney de Koch, CEO of ICOZA Internet Company South Africa.

The new regulations announced by the minister, Dr Ivy Matsepe-Cassaburi, greatly enhance the benefits users in the government and private sectors will enjoy through greater choice of access from a number of new competitors, and greater affordability to sustain such access. The Internet is an essential part of the e-government roll-out plans - both from an intra-governmental as well as citizen-facing perspective.

"The pricing of the South African telecommunications has made SA uncompetitive in the past, when it came to the delivery of call centre services relying on outbound calls, for instance. The recent announcement is a great step towards levelling the playing fields and placing South African and foreign operators in a better position to steer business our way," says De Koch.

ICOZA welcomes the direct benefits envisaged by the minister which include:

* A more competitive ICT environment.
* Improved access to ICT infrastructure and services.
* Affordable telecommunications services
* A variety of choice in services being provided by the ICT sector to meet both economic social needs of our society.

"To create greater access to all SA`s citizens and to make such access more affordable all add to our efforts to bridge the digital divide and to reinforce SA`s position as the telecommunications hub for the rest of southern Africa," emphasises De Koch.

"The legalisation of VOIP will drastically increase the speed of acceleration we are experiencing as a networked country, and also level the playing fields with the rest of the world in terms of communications and competitiveness," he says.

"Another benefit announced by the minister, `that public schools and public further education training institutions will be entitled to a 50% discount on all telecommunications calls to an Internet service provider; and any connection or similar fees or charges levied by an Internet service provider for accessing the Internet or transmitting and receiving any signals via the Onternet or for such access and transmission and reception`, is welcomed by the whole community," says De Koch.

ICOZA is well positioned, as the first private sector tier one empowered ISP initiative, to provide such essential services. As a value-added network service provider, ICOZA may carry voice using any protocol; and may also be provide services by means of telecommunications facilities other than those provided by Telkom and the second national operator or any of them.

"The minister`s decision has opened up new opportunities for Telkom, including the possibility for it to partner with niche service operators to supply, for instance, indigenous language content on various services," says De Koch.

A key area of benefit enabled from 1 February 2005 under the new regulations, is the ability to provide VOIP services. IP telephony, known in the industry as voice over IP (VOIP), is the transmission of telephone calls over a data network like one of the many networks that make up the Internet.

Typical applications future users of VOIP can look forward to are:

* Computer-to-computer calls - This is the easiest way to use VOIP. Users don`t have to pay for long-distance calls. Users will require software, a microphone, speakers, a sound card and an Internet connection. Except for your normal monthly ISP fee, there is usually no charge for computer-to-computer calls, no matter the distance.

* Computer-to-telephone - This allows anyone with a phone to call from a computer.

* Telephone-to-computer - With the right software installed on the computer to receive these calls, costs can be greatly reduced on long-distance calls.

* Telephone-to-telephone - Through the use of gateways, the user can connect directly with any other standard telephone in the world. By calling through a service provider`s gateway discounted calls may be offered. A number is entered and the user is connected through an IP-based network, again reducing costs, especially on long distance calls.

"We can look forward to a very exciting period as an ISP, to offer better, more competitive and a greater variety of services to our customers," concludes De Koch.