Voice over Internet protocol (VOIP) has been the subject of much discussion in the international press as services are rolled out in the United Kingdom, the United States and elsewhere. In South Africa, however, the debate has centred not on the numerous benefits that VOIP offers consumers but rather on why VOIP services are still being withheld by the government.
Minister of Communications Ivy Matsepe-Casaburri seems to have finally bowed to the inevitable and has agreed to release a timetable “in the coming months” that promises to liberalise the telecommunications market and probably allow for VOIP.
VOIP converts calls to data that specifically enables phone calls to be made over data networks such as the Internet. Suddenly you can make a long-distance call for no more than it costs you to make a local phone call.
This is upsetting to Telkom and its major shareholders, which include the government, and might explain why consumers are still waiting to make use of the technology legally, beyond the confines of Telkom’s monopoly.
VOIP is nothing new — it has been around for nearly a decade, but its benefits have only been highlighted in the media fairly recently.
Skype is the most famous of the online consumer-focused VOIP services. Another of these services, On Instant, which is aimed at business consumers, was recently introduced in the UK. In the US large cable operators have been pushing the technology to consumers.
Legislation drawn up in 1996 by the Independent Communications Authority of South Africa (Icasa) prevents the carrying of any voice or data traffic outside of Telkom’s network, if it originates in Telkom’s network. This means organisations are allowed to make use of IP telephony on private networks, but may not extend it to reach outside these networks.
Icasa declined to comment, saying that questions on when regulations might be eased and what impact they have on technological advancement require speculative answers, “which shouldn’t come from us”.
According to Reinhardt Buys of IT law firm Buys Incorporated, South African consumers are still, for now at least, legally prohibited from using Skype or similar services. This doesn’t mean this law is enforceable.
“The regulator will have to search every computer in every house and every office for copies of the Skype software,” says Buys. “The same enforcement problems presented by illegal music downloads apply to policing Skype telephone calls.”
“Service providers in South Africa are still banned from offering VOIP to their customers,” explains Tim Parsonson, a director at local voice and data solutions supplier Storm.
“Telkom has been offering it to its customers for some time now and, we understand, acknowledges VOIP as the network of the future. I therefore believe that it is increasingly likely that VOIP will be introduced formally to South Africa shortly.”
Parsonson maintains that business often adopts new technology before legislation catches up, as was the case with call back and WiFi, which allow wireless connections to the Internet or other networks.
He says business is unlikely to use voice over the Internet as it can be insecure. They would rather use voice over managed IP networks, or virtual private networks. Savings can be substantial — up to 70% on long-distance and international calls.
Parsonson explains that when his company implemented VOIP on its internal network (three branches, 130 employees) it cut its voice bill from R69 000 a month to R41 000 a month. Total investment in equipment totalled about R10 000.
“It is really the obvious next step for businesses to combine their voice and data networks to save on administration and costs,” says Parsonson.
Does this mean that VOIP services could impact negatively on telecommunications firms like Telkom?
“VOIP would reduce revenues, but not dramatically,” says Ewan McPhie, policy director at Bridges.org, a non-profit organisation dedicated to bridging Africa’s digital divide.
“Whenever someone connects to the Internet they have to make the first part of the connection over some sort of public line. So whether it’s Telkom or MTN, they will still get revenue for the local call, and as people realise that they can make long-distance calls more cheaply, they will make more calls. It just requires someone to take the long-term view.”
McPhie believes the implications of the legalisation of VOIP will be widespread. “These new technologies [such as VOIP and WiFi] would reduce costs and help get technology into hitherto underserved areas.
“Wireless is not something that will only benefit rich people or businesses — even though that is how it has been marketed. If community phone shops could use VOIP, then people who do not have access to a phone could make cheaper long-distance calls.”
According to Bridges.org, a number of African countries have already legalised VOIP and WiFi.
In South Africa, the combination of high call rates and increased service quality, not to mention Telkom’s multi-billion-rand profit this year, makes VOIP harder and harder to resist.
Web guide
Bridges.org: www.bridges.org
Icasa: www.icasa.org.za
Skype: www.skype.com
Telkom: www.telkom.co.za