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Telecoms sector defends multi-gateway system
The Herald (Zimbabwe)
October 04, 2006

http://www1.herald.co.zw/inside.aspx?sectid=9713&cat=8&livedate=10/04/2006

THE telecommunications industry has strongly defended the multi-gateway system saying it averts possible international telecommunications total blackouts in the event that one faces problems.

The industry also argued that the splitting of international gateways 10 years ago did not have an adverse effect on foreign currency generation by the sector, putting the blame squarely on lack of regulated viable termination rates which have resulted in depressed inflows.

Mobile telecommunications company Econet Wireless indicated yesterday Zimbabwe has the potential to earn substantial foreign currency but only if viable international termination rates are implemented.

"It is important to note that artificially low foreign currency inflows are not due to the existence of multiple international gateways but more to do with the lack of regulated viable termination rates," the company said in a statement.

"Multiple gateways are important to our strategic point of view in that, should one gateway face problems the country does not experience a telecommunication blackout as the other gateways can be used," Econet said.

The international gateway manages the inflows and outflow of traffic. Since the split of the international gateway, new players including Econet, Telecel and NetOne came on board. TelOne had been managing the only gateway before the split.

The four operators are interconnected for carrying both outgoing and in coming international traffic through their respective licensed gateways.

Econet said it has made proposals to the Reserve Bank of Zimbabwe and the Postal and Telecommunications Regulatory Authority of Zimbabwe to implement a single minimum international rate for incoming international calls to harness foreign currency inflows. But nothing had been achieved to date.

NetOne managing director Mr Reward Kangai said there was nothing wrong about operators running the international gateway.

"For instance, in compliance with the licence provision, NetOne only carries international traffic originating and destined for its own network and does not carry or collect traffic for any other operator in Zimbabwe," he said.

The NetOne boss, however, blamed unlicensed Internet Service Providers (ISPs) for defrauding TelOne of foreign currency revenues generated from international traffic.

Indications are that TelOne could have been prejudiced in excess of US$480 million.

"These ISPs use a technology called Voice Over the Internet Protocol (VOIP) to terminate refiled international traffic into local mobile networks (by prefixing the number to 263) through TelOne which inadvertently declares this traffic as national calls," Mr Kangai added.

The ISPs are then paid in hard currency as the calls are classified as national calls. TelOne, in turn, pays mobile operators in local currency.

NetOne indicated that it can only monitor network traffic fraud up to a limited extent but can advise the regulator or the police if any case is dictated.

The concept of international gateways is not unique to Zimbabwe in a region which has already liberalised its telecommunication market to allow the entry of other players.

In the region, Botswana, through its Ministry of Communications, Science and Technology has liberalised the telecoms sector and with effect from October 1 2006, the Botswana Telecommunications Corporation (BTC), which is similar to our TelOne, no longer has monopoly over the operation and management of international gateways.

In that respect, mobile operators such as Mascom Wireless and Orange, can provide international switching and transmission of voice services.

In Lesotho, where Econet operates the second largest mobile network, the government is liberalising the sector and will introduce competition in the operation of gateways by December.

In South Africa, the Independent Communications Authority of South Africa (Icasa) has liberalised the telecoms sector and Telkom no longer has monopoly over international gateways and other services, such as the provision of fixed network services following the recent launch of a new fixed line operator.

Most of the countries that are liberalising are putting in place effective regulatory and monitoring mechanisms to ensure that customers are not prejudiced or short-changed, and that the state benefits through foreign currency inflows.

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