The emergence of security threats to systems follow the growth of VoIP services that provide a highly convenient and cost effective tool to make and receive calls over the Internet. To ensure the security of calls and information, it is necessary to find a supplier that can deal with the various security threats and potential problems. Here are some questions you to ask regarding security and potential breaches.
1. VoIP service is vulnerable to a DNS attack?
Denial of service attacks can clog VoIP servers deny service to other users. Professional VoIP service providers protect against such attacks by using firewalls, redundant servers, and around the clock monitoring.
2. VoIP calls can be intercepted by hackers?
Although not significant, there are always chances for hackers to listen to phone calls over the Internet. To protect yourself from malicious eavesdropping, should the VoIP provider uses encryption tools.
3. If you use encryption, making it Reduce Call Quality?
Processing increases with encryption. The more difficult the encryption, the greater the sound distractions such as noise, echo, and waiting, on call. Your VoIP service providers should adopt the hardware and software solutions that make encryption transparent to the service users.
4. How to test VoIP Services Software against vulnerability to hacker attacks?
To ensure the establishment of the VoIP systems that will resist attacks from hackers, systems must be tested by security experts for defects and potential problems. Known suppliers combines in-house testing and research with outside testing of VoIP systems by security professionals and specialists, to create highly secure system for you.
5. How to install updates and it is a cost involved in it?
Upgrading of VoIP services can bear unnecessary costs on you. Ask prospective contractors for the distribution of patches and how their systems can be integrated with the company’s own software update protocol to keep costs to a minimum.
6. Can stolen VoIP routers be disabled remotely?
A stolen VoIP router can create enormous problems for your business through information leaks. Ask your VoIP providers on how they deal with stolen routers and if they can be disabled remotely for keeping your account information safe and intact. Be aware of a service that cannot guarantee the security of confidential information.
7. For extra safety, it is possible to dial a VPN?
If you need to keep phone conversations private, even from the phone company, opt for a service that lets you make calls through virtual private networks. But keep all data within the VPN involves additional hardware and software costs.
8. VoIP service is vulnerable to scammers and impersonators?
Scammers can hijack the conversation and publish customer service representatives to collect personal account information. Hackers can access an open port and re-sell the minutes of the company’s VoIP account. To prevent these problems from creeping up, the service provider must regularly monitor VoIP service use looking for unusual activity or packet routing to countries with few known clients.
Even after deploying a VoIP service, it is important to ensure that you receive adequate and upgraded security that can tackle newer security threats over the internet. Creating and maintaining strong relationships with account representatives. In addition, stay informed, keep in touch with service providers and regularly check the vendor blogs.
Monday, December 20, 2010
From Hype to Reality: Communications as a Service
Communications as a Service. Cloud communications. Hosted PBX. You've heard the terms, and you've witnessed the hype. But what are these technologies? And what will they do for your business?
Generally, a CaaS solution involves your business utilizing the resources, equipment and software of a service provider in its network or data center, as opposed to housing equipment, such as a phone system, at your location.
These services can be accessed by your business over the Internet or via a private connection to the service provider. CaaS solutions generally include all of the features of an on-site phone system, along with local and long distance calling. They also often include telephone handsets and connectivity to the service provider and/or the Internet.
CaaS solutions are purchased like power, traditional and cellular telephones, and cable or satellite TV -- on a per month, (largely) per user basis.
One in five enterprise firms already use managed services for their network and telecommunications needs. In fact, hosted Voice over IP (VoIP) is anticipated to be a US$14.6 billion market in the United States by 2012, with the majority of that revenue coming from companies with fewer than 100 employees.
Here's what you need to know before you join the movement.
Why CaaS?
Productivity and efficiency benefits are viewed as key drivers for VoIP adoption by nearly 30 percent of respondents in mid-sized businesses in North America, Research firm Frost & Sullivan claims. VoIP provides significant productivity features to any business, regardless of whether the phone system is located on the customer site or in the cloud.
Features such as Unified Messaging and PC Integration (pop ups, click-to-dial, call control, soft phone, find me/follow me) enhance your employees' ability to stay in touch with customers both in the office and on the road.
However, purchasing CaaS offers various architectural and financial advantages that cannot be replicated with on-site equipment. It is these advantages, and not simply features, that are driving business communications to the cloud.
During the Industrial Age, factories had to control production and create their own power. As more factories
and ultimately businesses and homes required power, utilities built infrastructure to power them. Factories were (happily) out of the power business. Likewise, IP networks are the infrastructure to power CaaS.
By moving communications to the cloud, businesses can experience many benefits:
In a bad economy, companies do one of two things (or both): Increase efficiency or cut costs. A CaaS solution can uniquely provide both. First, new features mean new opportunities for efficiency. Second, when fully analyzed, companies will see real cost savings in moving to a CaaS solution.
In order to find these cost savings, businesses must evaluate hosted technology offerings in light of their Total Cost of Ownership.
TCO is an often overused and misunderstood concept. Many financial decision makers consider TCO as a
soft or sunk cost argument to making an expensive technology decision. While a poorly formed argument can surely seem that way, CaaS can offer a quantifiable TCO that is generally equal to or lower than the traditional alternatives.
The bottom line is that purchasing any technology as a service provides the following:
There are three main factors that affect the quality of a VoIP deployment: latency, packet loss, and jitter. To avoid these issues and ensure your network (whether LAN or WAN) has sufficient bandwidth to smoothly and flawlessly carry voice, a thorough network assessment should be performed in advance of the implementation.
To size the amount of bandwidth needed to cover your voice usage, you will need to understand the CODEC (Compressor/Decompressor) that your CaaS provider uses. Voice sessions can vary in size from roughly 30Kbps to close to 100Kbps. This CODEC will also dictate the quality of the compressed audio.
Network managers should also be prepared to address end-to-end class and quality of service. Class of Service (CoS) refers to a network's ability to classify and treat traffic differently based on the type of data being transmitted. Meanwhile, Quality of Service (QoS) applies to the standards that can be placed on the classified traffic.
Ensure that LAN switches are managed and capable of supporting QoS. WAN links and service providers should provide bandwidth that honors QoS between sites by utilizing Multiprotocol Label Switching (MPLS).
Unlike traditional handsets, which obtain inline power from POTS (Plain Old Telephone Service) phone lines, VoIP handsets are connected to the Ethernet. As a result, power must be provided through a Power over Ethernet switch (POE) or plugged into the wall.
While these considerations should be taken seriously, they should not be seen as obstacles. A well planned and executed CaaS strategy can deliver call quality ratings similar to or better than traditional implementations. It can also deliver on the productivity and financial advantages that prompted you to consider it in the first place.
Generally, a CaaS solution involves your business utilizing the resources, equipment and software of a service provider in its network or data center, as opposed to housing equipment, such as a phone system, at your location.
These services can be accessed by your business over the Internet or via a private connection to the service provider. CaaS solutions generally include all of the features of an on-site phone system, along with local and long distance calling. They also often include telephone handsets and connectivity to the service provider and/or the Internet.
CaaS solutions are purchased like power, traditional and cellular telephones, and cable or satellite TV -- on a per month, (largely) per user basis.
One in five enterprise firms already use managed services for their network and telecommunications needs. In fact, hosted Voice over IP (VoIP) is anticipated to be a US$14.6 billion market in the United States by 2012, with the majority of that revenue coming from companies with fewer than 100 employees.
Here's what you need to know before you join the movement.
Why CaaS?
Productivity and efficiency benefits are viewed as key drivers for VoIP adoption by nearly 30 percent of respondents in mid-sized businesses in North America, Research firm Frost & Sullivan claims. VoIP provides significant productivity features to any business, regardless of whether the phone system is located on the customer site or in the cloud.
Features such as Unified Messaging and PC Integration (pop ups, click-to-dial, call control, soft phone, find me/follow me) enhance your employees' ability to stay in touch with customers both in the office and on the road.
However, purchasing CaaS offers various architectural and financial advantages that cannot be replicated with on-site equipment. It is these advantages, and not simply features, that are driving business communications to the cloud.
During the Industrial Age, factories had to control production and create their own power. As more factories
and ultimately businesses and homes required power, utilities built infrastructure to power them. Factories were (happily) out of the power business. Likewise, IP networks are the infrastructure to power CaaS.
By moving communications to the cloud, businesses can experience many benefits:
1. Scalability. Since CaaS solutions take advantage of large systems owned by the provider, your business will not have to select hardware or software with the growth (or reduction) of your workforce in mind. There's no reason to throw out equipment because you need to get a bigger boat (or a smaller one).
2. Mobility. Services located in the provider's network are intrinsically prepared to support a distributed workforce at multiple locations or at home.
3. Disaster Recovery. Services located in the cloud will remain up, even if there is a local disaster, power failure, or line cut. When a customer calls the office, the CaaS auto attendant picks up and automatically forwards the call to cellphones, voicemail or alternative locations.
4. Manageability. Because they must support a wide range of customers, with various levels of technical acumen, CaaS providers focus their energies on ease of use. As a result, many hosted solutions are easier to manage than on-site equipment or software.
5. Upgradeability. When the provider adds new features, you get them. No upgrades, no fees, no problem.
6. Satisfaction and Service Level. Once a premise-based system is purchased, there is no going back if users are not satisfied with features, or the level of service is not adequate. A CaaS solution, meanwhile, is rented, and generally comes with stringent guarantees.Costs and Savings
In a bad economy, companies do one of two things (or both): Increase efficiency or cut costs. A CaaS solution can uniquely provide both. First, new features mean new opportunities for efficiency. Second, when fully analyzed, companies will see real cost savings in moving to a CaaS solution.
In order to find these cost savings, businesses must evaluate hosted technology offerings in light of their Total Cost of Ownership.
TCO is an often overused and misunderstood concept. Many financial decision makers consider TCO as a
soft or sunk cost argument to making an expensive technology decision. While a poorly formed argument can surely seem that way, CaaS can offer a quantifiable TCO that is generally equal to or lower than the traditional alternatives.
The bottom line is that purchasing any technology as a service provides the following:
1. Reduction of OPEX: Many direct and soft costs are bundled in with CaaS solutions. These include software/hardware maintenance; moves/adds/changes (MACs); training/certifications; power; cooling; selling, general & administrative expense (SG&A) for extra staff; network services (data, IP, voice); and security and compliance.
2. Elimination of CAPEX: There is no need for upfront capital or the liability of a business lease.In most cases, CaaS solutions can provide new features to your end users at a cost savings over supporting your existing system and carriers.
Preparing for CaaS
CaaS (or any VoIP deployment, for that matter) adds an entirely new responsibility to a business's existing network: adding and moving voice through the network. Voice streams are more sensitive to network congestion than data. While a millisecond delay in delivering a Web page is likely not noticeable, that same delay when delivering a voice packet will be experienced as a stutter or moment of silence.There are three main factors that affect the quality of a VoIP deployment: latency, packet loss, and jitter. To avoid these issues and ensure your network (whether LAN or WAN) has sufficient bandwidth to smoothly and flawlessly carry voice, a thorough network assessment should be performed in advance of the implementation.
To size the amount of bandwidth needed to cover your voice usage, you will need to understand the CODEC (Compressor/Decompressor) that your CaaS provider uses. Voice sessions can vary in size from roughly 30Kbps to close to 100Kbps. This CODEC will also dictate the quality of the compressed audio.
Network managers should also be prepared to address end-to-end class and quality of service. Class of Service (CoS) refers to a network's ability to classify and treat traffic differently based on the type of data being transmitted. Meanwhile, Quality of Service (QoS) applies to the standards that can be placed on the classified traffic.
Ensure that LAN switches are managed and capable of supporting QoS. WAN links and service providers should provide bandwidth that honors QoS between sites by utilizing Multiprotocol Label Switching (MPLS).
Unlike traditional handsets, which obtain inline power from POTS (Plain Old Telephone Service) phone lines, VoIP handsets are connected to the Ethernet. As a result, power must be provided through a Power over Ethernet switch (POE) or plugged into the wall.
While these considerations should be taken seriously, they should not be seen as obstacles. A well planned and executed CaaS strategy can deliver call quality ratings similar to or better than traditional implementations. It can also deliver on the productivity and financial advantages that prompted you to consider it in the first place.
Tuesday, December 7, 2010
WhichVoIP.co.za takes VOIP to next level
Local service site www.WhichVoIP.co.za has been well accepted by South Africans since its release in September 2010, says site founder Mitchell Barker. “We always knew voice over IP was a topical subject, but we didn't expect to get the traction we have in such a short period of time.”
Through our relationships with the user community and the direct focus on gaining social creds, we have learnt a lot and adapted the way we position the components and content to ensure that the site remains as news-breaking and relevant as possible. We don't want once-off visitors, we want partnerships.
Since inception we have incorporated functionality such as an instant quotation facility, with a full ROI analysis, added some great content to the guide section, and dedicated forums per VOIP provider, which allows a user to see news just on their provider of choice.
This means people no longer have to subscribe to many publications and sift through to find the information they need. If they wanted to see what Telkom (as an example) is featuring in the news, they could log in directly to that forum, and choose the article they wish to read. From day one, the site was developed with ease of use as the number one priority.
We are now at a stage that is so important for us, and will take www.WhichVoIP.co.za to the next level. Many providers have embraced the site, and are now looking at how they can get involved. This is very exciting for us.
Today, site users purchase research reports for their chosen VOIP provider instantly online, tomorrow you may see a new section with reports by the VOIP provider, available for instant download. This will see VOIP providers using the site as a conduit to market for potential end-users and to attract partners.
This is an interesting concept, says Barker. We live in an online world and people are about convenience. What better way to give people what they want, and a repository for all things VOIP from a single portal.
www.WhichVoIP.co.za is South Africa's number one online VOIP research and reporting Web site, and provides users with a central view of VOIP telecoms operators in South Africa.
The site is dedicated to all things VOIP, with the ability to draw research reports on various VOIP providers, browse a directory of reputable providers, resellers, consultants and service partners, learn about VOIP, collaborate with other members in focused forum, have an opportunity to submit blogs, download articles, browse a technical FAQ section and even purchase components of VOIP online.
WhichVoIP.co.za will not only keep people who are investigating the technology and these providers informed prior to negotiation, but will also help providers and resellers benchmark their services, align contracts, and truly be able to offer their customer the best service, best suited to their business.
- ITWeb
Through our relationships with the user community and the direct focus on gaining social creds, we have learnt a lot and adapted the way we position the components and content to ensure that the site remains as news-breaking and relevant as possible. We don't want once-off visitors, we want partnerships.
Since inception we have incorporated functionality such as an instant quotation facility, with a full ROI analysis, added some great content to the guide section, and dedicated forums per VOIP provider, which allows a user to see news just on their provider of choice.
This means people no longer have to subscribe to many publications and sift through to find the information they need. If they wanted to see what Telkom (as an example) is featuring in the news, they could log in directly to that forum, and choose the article they wish to read. From day one, the site was developed with ease of use as the number one priority.
We are now at a stage that is so important for us, and will take www.WhichVoIP.co.za to the next level. Many providers have embraced the site, and are now looking at how they can get involved. This is very exciting for us.
Today, site users purchase research reports for their chosen VOIP provider instantly online, tomorrow you may see a new section with reports by the VOIP provider, available for instant download. This will see VOIP providers using the site as a conduit to market for potential end-users and to attract partners.
This is an interesting concept, says Barker. We live in an online world and people are about convenience. What better way to give people what they want, and a repository for all things VOIP from a single portal.
www.WhichVoIP.co.za is South Africa's number one online VOIP research and reporting Web site, and provides users with a central view of VOIP telecoms operators in South Africa.
The site is dedicated to all things VOIP, with the ability to draw research reports on various VOIP providers, browse a directory of reputable providers, resellers, consultants and service partners, learn about VOIP, collaborate with other members in focused forum, have an opportunity to submit blogs, download articles, browse a technical FAQ section and even purchase components of VOIP online.
WhichVoIP.co.za will not only keep people who are investigating the technology and these providers informed prior to negotiation, but will also help providers and resellers benchmark their services, align contracts, and truly be able to offer their customer the best service, best suited to their business.
- ITWeb
Sunday, December 5, 2010
The changing face of international telecoms
The real test for telecoms companies is only beginning, as the upturn gathers momentum
The recent economic turmoil saw telecoms companies demonstrate resilience and adaptability, with many using the slowdown as an opportunity to retool and regroup to build a solid base from which to capitalise on the recovery.
The real test for telecoms companies is only beginning, as the upturn gathers momentum. Globally, with broadband becoming ubiquitous and the growth of services exploding, the telecom value chain is rapidly fragmenting as many operators are losing out to application, content and device providers who are accumulating much of the new revenues and opportunities which currently exist.
There are six key challenges that need to be addressed by operators, which will assist telecoms companies to be successful in this new business environment and allow them to claim their rightful share of future revenues in the digital era.
Establish customer ownership and understanding
Customer loyalty and brand trust is shifting away from the service operators towards the device itself and the online applications accessed through it. To turn the tide on this trend, operators must reshape their business to put the customer first in all they do.
Monetise new services effectively
The rising penetration of both fixed and wireless broadband has enabled the launch of many new online services with the mobile handset becoming an indispensable converged lifestyle tool handling virtually everything people need. To capture the opportunities and revenues from newer and emerging services the best approach may be through collaborative revenue sharing partnerships which will bring access to critical expertise and speed up the time to market.
Achieve economic returns from the continuing rise in digital traffic
Consumer demand continues to drive huge rises in the volumes of data traffic that operators have to carry across their networks. Although not yet that prevalent in South Africa, we have seen many consumers moving towards fixed-price access plans globally. With the increased broadband capacity in South Africa (due to the landing of various undersea cables, i.e. Seacom, Eassy, WACS) broadband prices are decreasing which may result in similar models going forward.
Under this model, it may become increasingly difficult for operators to sustain economic returns for broadband data usage and going forward, depending on the evolution of the broadband market, operators may have to adopt a user-based charging model for mobile data.
Improving operational simplicity and efficiency
This is a major objective for many operators who have grown by consolidation and the use of "bolted-on" solutions to handle new services. This has left many of them with highly complex and inefficient operating models. One of the key attributes for success both now and in the future will be greater organisational agility in order to respond to both internal challenges and those posed by the fierce competition from the application and device suppliers, who have had some competitive advantage in recent years due to their higher degree of ability and speed to market.
One critical step which many operators have yet to take is to remove customer, product and business intelligence from the various silos and centralise it on an enterprise-wide basis. By unifying all this intelligence into one central entity, the operators will benefit from greater efficiency, agility and responsiveness to external change, whether driven by customers, competitive dynamics or regulation.
Managing regulatory risk
In recent times, regulators have taken a renewed interest in the telecoms industry both at a national and global level. Considering the wide array of matters being dealt with by regulators, especially in emerging markets, it is becoming increasingly important for the regulators and other stakeholders to establish and build strong positive relationships in order to amicably resolve the issues being dealt with.
Creating value through consolidation
Consolidation will continue in the telecoms sector, however the industry will now see deals driven by emerging market giants who may be seeking exposure in developed markets. Consolidation will also be driven by three objectives – economies of scale, fixed/mobile convergence and sustainable cost reduction which will help to provide a robust platform for growth in the digital age. The priority of any deal is to create shareholder value – something which has proved elusive in some instances in the past.
With each technological advancement operators face an exponential rise in the data traffic being carried across their networks which results in a corresponding decrease in the price they can charge customers for carrying each bit of data.
The introduction of the smart phone is an excellent example as it is beginning to rival the computer as a communication tool. Consumers routinely use these devices to view digital content. This capability, coupled with the dramatic rise of social networking, has fundamentally changed mobile communications and is accelerating the migration to digital by providing access to digital content
- My Broadband, written by Johan van Huyssteen PricewaterhouseCoopers
The recent economic turmoil saw telecoms companies demonstrate resilience and adaptability, with many using the slowdown as an opportunity to retool and regroup to build a solid base from which to capitalise on the recovery.
The real test for telecoms companies is only beginning, as the upturn gathers momentum. Globally, with broadband becoming ubiquitous and the growth of services exploding, the telecom value chain is rapidly fragmenting as many operators are losing out to application, content and device providers who are accumulating much of the new revenues and opportunities which currently exist.
There are six key challenges that need to be addressed by operators, which will assist telecoms companies to be successful in this new business environment and allow them to claim their rightful share of future revenues in the digital era.
Establish customer ownership and understanding
Customer loyalty and brand trust is shifting away from the service operators towards the device itself and the online applications accessed through it. To turn the tide on this trend, operators must reshape their business to put the customer first in all they do.
Monetise new services effectively
The rising penetration of both fixed and wireless broadband has enabled the launch of many new online services with the mobile handset becoming an indispensable converged lifestyle tool handling virtually everything people need. To capture the opportunities and revenues from newer and emerging services the best approach may be through collaborative revenue sharing partnerships which will bring access to critical expertise and speed up the time to market.
Achieve economic returns from the continuing rise in digital traffic
Consumer demand continues to drive huge rises in the volumes of data traffic that operators have to carry across their networks. Although not yet that prevalent in South Africa, we have seen many consumers moving towards fixed-price access plans globally. With the increased broadband capacity in South Africa (due to the landing of various undersea cables, i.e. Seacom, Eassy, WACS) broadband prices are decreasing which may result in similar models going forward.
Under this model, it may become increasingly difficult for operators to sustain economic returns for broadband data usage and going forward, depending on the evolution of the broadband market, operators may have to adopt a user-based charging model for mobile data.
Improving operational simplicity and efficiency
This is a major objective for many operators who have grown by consolidation and the use of "bolted-on" solutions to handle new services. This has left many of them with highly complex and inefficient operating models. One of the key attributes for success both now and in the future will be greater organisational agility in order to respond to both internal challenges and those posed by the fierce competition from the application and device suppliers, who have had some competitive advantage in recent years due to their higher degree of ability and speed to market.
One critical step which many operators have yet to take is to remove customer, product and business intelligence from the various silos and centralise it on an enterprise-wide basis. By unifying all this intelligence into one central entity, the operators will benefit from greater efficiency, agility and responsiveness to external change, whether driven by customers, competitive dynamics or regulation.
Managing regulatory risk
In recent times, regulators have taken a renewed interest in the telecoms industry both at a national and global level. Considering the wide array of matters being dealt with by regulators, especially in emerging markets, it is becoming increasingly important for the regulators and other stakeholders to establish and build strong positive relationships in order to amicably resolve the issues being dealt with.
Creating value through consolidation
Consolidation will continue in the telecoms sector, however the industry will now see deals driven by emerging market giants who may be seeking exposure in developed markets. Consolidation will also be driven by three objectives – economies of scale, fixed/mobile convergence and sustainable cost reduction which will help to provide a robust platform for growth in the digital age. The priority of any deal is to create shareholder value – something which has proved elusive in some instances in the past.
With each technological advancement operators face an exponential rise in the data traffic being carried across their networks which results in a corresponding decrease in the price they can charge customers for carrying each bit of data.
The introduction of the smart phone is an excellent example as it is beginning to rival the computer as a communication tool. Consumers routinely use these devices to view digital content. This capability, coupled with the dramatic rise of social networking, has fundamentally changed mobile communications and is accelerating the migration to digital by providing access to digital content
- My Broadband, written by Johan van Huyssteen PricewaterhouseCoopers
Business owners to rethink telecoms in 2011?
SS Telecoms' George Smalberger takes a look at South Africa's changing telecoms environment and the implications of recent structural shifts for business owners.
Over the last five years, South African businesses have put a lot of effort into setting up telephony systems that deliver cost savings in an expensive, mobile dominated marketplace. This work may well have to be re-examined, however, as key structural change impact on market dynamics.
“The most significant short-term change is the drop in interconnect rates,” says George Smalberger, MD of specialist telephony company SS Telecoms. “Least cost routing (LCR) solutions have been essential for most businesses seeking to mitigate against the cost of cross-network calls, but this will change quite significantly now. In fact, there is obvious evidence of this shift around already - the market is evolving fast.”
SS Telecoms has been designing, manufacturing and supporting telephony products across the telecoms spectrum for over 21 years. Its products are utilised in businesses of all sizes across the South African economy, and its extensive distributor partnerships give it interesting insight into the ongoing evolution of the local telecoms sector.
“A lot of companies are excited by Africa's investment in ICT infrastructure, and for good reason,” says Smalberger. “We've got the big WACS cable coming online next year, and another one in 2012. With bandwidth quality improving and costs dropping, we're likely to see the market seriously investigating VOIP solutions. So not only is LCR in some instances no longer essential, but VOIP is starting to appear on the horizon as a real option for any business.”
Smalberger says major shifts are likely to come in the middle range of the market, however, with the larger players adapting seamlessly to structural changes.
“The big guns have the resources and budgets to adapt as things change,” he says. “But in the mid-range and SME segments these kinds of decisions take longer and have a more direct impact on the organisation. Based on our 2010 experience and that of our distributors, this will be the really interesting segment to watch next year.”
So, will the average South African company phone bill shrink in 2011?
“Well, in theory, but in each instance it generally depends on the boss,” Smalberger says. “Getting the phone bill down is about understanding how your business works, and what solution will meet its needs best, and quality is vital, of course. A VOIP solution must actually deliver the right quality. The same goes for performance management. It's no good slashing your phone bill if you have to abandon the ability to control staff behaviour on the phone. So the potential to reduce the bill is there, but it will take good leaders to turn that potential into reality.”
The bottom line for Smalberger is that positive consolidation is occurring in the South African market, which is starting to open up properly for the first time.
“There are a lot of options out there now. Fixed-line, wireless, VOIP and so on,” he says. “This means genuine choice and flexibility for enterprises and organisations, and service providers will be compelled to innovate in their offerings, which is very positive for businesses and consumers. As a result, we expect to see quite a big shift in the way South African businesses approach their telecommunications set-up in 2011, continuing through 2012.”
- ITWeb
Over the last five years, South African businesses have put a lot of effort into setting up telephony systems that deliver cost savings in an expensive, mobile dominated marketplace. This work may well have to be re-examined, however, as key structural change impact on market dynamics.
“The most significant short-term change is the drop in interconnect rates,” says George Smalberger, MD of specialist telephony company SS Telecoms. “Least cost routing (LCR) solutions have been essential for most businesses seeking to mitigate against the cost of cross-network calls, but this will change quite significantly now. In fact, there is obvious evidence of this shift around already - the market is evolving fast.”
SS Telecoms has been designing, manufacturing and supporting telephony products across the telecoms spectrum for over 21 years. Its products are utilised in businesses of all sizes across the South African economy, and its extensive distributor partnerships give it interesting insight into the ongoing evolution of the local telecoms sector.
“A lot of companies are excited by Africa's investment in ICT infrastructure, and for good reason,” says Smalberger. “We've got the big WACS cable coming online next year, and another one in 2012. With bandwidth quality improving and costs dropping, we're likely to see the market seriously investigating VOIP solutions. So not only is LCR in some instances no longer essential, but VOIP is starting to appear on the horizon as a real option for any business.”
Smalberger says major shifts are likely to come in the middle range of the market, however, with the larger players adapting seamlessly to structural changes.
“The big guns have the resources and budgets to adapt as things change,” he says. “But in the mid-range and SME segments these kinds of decisions take longer and have a more direct impact on the organisation. Based on our 2010 experience and that of our distributors, this will be the really interesting segment to watch next year.”
So, will the average South African company phone bill shrink in 2011?
“Well, in theory, but in each instance it generally depends on the boss,” Smalberger says. “Getting the phone bill down is about understanding how your business works, and what solution will meet its needs best, and quality is vital, of course. A VOIP solution must actually deliver the right quality. The same goes for performance management. It's no good slashing your phone bill if you have to abandon the ability to control staff behaviour on the phone. So the potential to reduce the bill is there, but it will take good leaders to turn that potential into reality.”
The bottom line for Smalberger is that positive consolidation is occurring in the South African market, which is starting to open up properly for the first time.
“There are a lot of options out there now. Fixed-line, wireless, VOIP and so on,” he says. “This means genuine choice and flexibility for enterprises and organisations, and service providers will be compelled to innovate in their offerings, which is very positive for businesses and consumers. As a result, we expect to see quite a big shift in the way South African businesses approach their telecommunications set-up in 2011, continuing through 2012.”
- ITWeb
Goodbye ICASA
South Africa will be saying goodbye to its independent communications regulator if the Icasa Amendment Bill goes through in its current form.
South Africa’s post, telecommunications and broadcast sectors are governed by an independent regulator – the Independent Communications Authority of South Africa (Icasa). Created out of the old South African Telecommunications Regulatory Authority (Satra) and the Independent Broadcasting Authority, Icasa came into being in 2000, per the Icasa Act.
Regulators exist to manage scarce resources (frequency spectrum in this case), to ensure that the interests of the public are served where commercial interests would otherwise dominate, and to ensure, in sectors where monopolies traditionally dominated (so-called natural monopoly sectors) that liberalisation happens, and that everyone plays fair while it’s happening, among other reasons.
Internationally, the trend towards regulating to control sectors has now reversed and deregulation is becoming the norm, with regulators like Ofcom in the UK taking an increasingly hands-off approach.
In South Africa, the regulator has been under-resourced, subject to capture by either political or commercial interests and overall ineffectual, since its creation.
The Icasa Amendment Bill, or as the Department of Communications prefers to call it, the ‘proposed’ Icasa Amendment Bill, was gazetted on 25 June. Respondents were given 30 days to comment on a Bill that has far-reaching implications for the broadcasting and telecommunications sectors. The department intends to take the bill to Parliament this year still.
Says Save our SABC (SOS) campaign coordinator Kate Skinner: “No one knew it existed for the first five days; Icasa didn’t advertise it. We picked it up from the Government Gazette via lawyers we know who scrutinise it. As such, we didn’t have 30 days to consider it, we didn’t have prior notice, we had no information on why the department was introducing it. Reading it, it became obvious the DOC is trying to deal with Icasa’s inefficiencies and slow turnaround times.”
Unfortunately, the DOC is trying to deal with this by putting more responsibility on the Minister and less on the Authority. Dominic Cull, Ellipsis Regulatory Solutions, fears the Icasa Amendment Bill threatens the regulator's independence. The bill amends the existing legislation to do the following things, Skinner says:
- change the position of CEO to chief operations officer (COO)
- clearly differentiate between the functions of the Council and the COO
- improve turnaround times
- establish a Tariff Advisory Council
- improve the functioning of the Complaints and Compliance Committee
- remove Icasa’s frequency spectrum management role
- enable the Minister to assign functions and roles to the chair and councillors
- enable the Minister to appoint members of the Complaints and Compliance Committee
- enable Icasa to continue working even when there are legal challenges on the table.
Some of the above amendments, at least two of which would be welcomed by the sector, are problematic for several reasons.
Undue interferenceFirst problem, says Skinner, is that changing the CEO into a COO will remove the accounting officer from the agency, in direct contravention of the Public Finance Management Act.
Second, by being able to assign roles and functions to the councillors and chairperson, the Minister would be able to directly interfere with, for example, licensing, and influence which licences are granted, or not.
“This is directly at odds with international standards and principles,” Skinner comments.
Says Dominic Cull, founder of Ellipsis Regulatory Solutions: “The amendment gives the Minister the right to assign fields of competency that each councillor oversees. I can’t see how that sits with the notion of independence on the part of the regulator. I appreciate that independence is a relative concept in this context, but in terms of South Africa’s World Trade Organisation obligations, we are obliged to have a regulator independent of government and this proposal infringes that. As far as broadcasting is concerned, it infringes on chapter nine of the Constitution (which says that national legislation must establish an independent broadcasting authority).”
Third, the amendment bill arbitrarily reduces turnaround times by half, so where the Act says 180 days, it would drop to 90 days; where it says 60 days, it changes to 30, and so on.
Says Cull: “We’re quite happy that they are looking at reducing the time periods but certainly not at the expense of the public consultation period. The amended clause says it wants to reduce unreasonably long consultation periods, which is lovely and would be great to achieve, but you can’t do that by reducing the consultation period from 60 days to 30. Some enquiries are by nature complicated and to give public and industry 30 days to research and comment is not acceptable.”
------------------------------------------------------------
The bill in its current form gives every appearance of seeking to undermine Icasa and gives every indication of a deteriorating relationship between Icasa and the DOC. Dominic Cull, Ellipsis Regulatory Solutions.
------------------------------------------------------------
Fourth, that the Minister evaluates councillors is inappropriate. The amended provision gives the Minister the power to chair the Evaluation Panel, says Skinner, which will be responsible for tenure and possible removal of councillors and the chairperson.
“This potentially directly undermines the independence of councillors and again raises the danger of political interference in the workings of the regulator,” Skinner notes.
Fifth, in order to remain independent, she says, Icasa must have the power to appoint the people it feels will best serve on the Complaints and Compliance Committee. Assigning this responsibility to the Minister will undermine that.
Sixth, enabling Icasa to continue working on something while it is subjected to legal challenges is problematic. “The amendment states that the authority must continue with function until a court order directs otherwise. I love the idea,” says Cull, “but I have no idea how it’s going to operate in real life.
“So Telkom, for example, will go and get an interdict that says Icasa cannot implement the call termination rate (CTR) regime when it is published. If Icasa continues in the face of that, it would open itself up to legal liabilities. Say it publishes a CTR regime that says mobile operators must reduce rates from 89c to 65c on 1 March 2011 and an operator challenges that in court, and Icasa carries on until a court decides otherwise. If the operator implements the new rates, it could lose millions in revenue. If the court finds in its favour, it will have lost that revenue needlessly. What does it do then – sue the regulator?”
As for the Tariff Advisory Council, he says: “In principle it’s not a bad idea but we need more information on how it will operate. I do not like the notion of a body sitting in Icasa that is appointed by the Minister and can act at his behest. I don’t see how that will help Icasa function effectively. It introduces a political element and raises the independence argument. The same argument arises with amendments to the Complaints and Compliance Committee, which propose greater involvement of the Minister. Without further information, it is impossible to see how that will improve Icasa’s functioning.”
Lastly, amending Icasa’s function from managing spectrum to merely assigning it is in conflict with the
Electronic Communications Act.
Bolstering Icasa
What the regulator needs, Skinner and Cull agree, is money.
“An independent regulator requires sufficient financial resources to carry out its activities,” said the LINK Centre, Wits University’s ICT research and training arm, in its submission on the proposed amendments. “Icasa should not be subject to any form of financial pressure from the Minister or the DoC, which could be used to punish it for actions or decisions unpopular with the government of the day, or to apply indirect political pressure upon its mandate. And the regulator should further be required to account to the nation publicly and transparently. Icasa is already constrained in this respect, given that its funding comes through Parliament rather than from licence fees, and that both its budget and annual report require the involvement of the Minister, albeit they are approved by Parliament.”
“If we had a proper policy review process, we could look at it to ensure the regulator is funded properly so it can work in favour of users, not private organisations or government,” says Skinner, raising a common complaint – proposed legislation or amendments no longer go through the green and white paper consultation process, which means legislation that is fundamentally flawed gets to bill stage before this becomes apparent once public consultation starts.
“There’s clearly a problem with Icasa,” says Cull. “This is nothing new. Since the dawn of Satra in 1996, the regulator has suffered under capacity and finance constraints and has not been able to discharge its duty in a competent manner. It would be lovely if the bill took the view that we should bolster Icasa and allow it to discharge its current function. The bill in its current form gives every appearance of seeking to undermine Icasa and gives every indication of a deteriorating relationship between Icasa and the DoC.”
That the body at the DoC pushing this legislation forward is an ex-Icasa councillor has probably not helped matters.
-----------------------------------------------------------
...obvious [that] the DOC is trying to deal with Icasa's inefficiences and slow turnaround times. Kate Skinner, SOS.
-----------------------------------------------------------
Said body, Mamodupi Mohlala, director general of the DoC, was on leave pending redeployment at the time of writing, having been fired by the Minister and then reinstated. Should an alternative position not be found for her, she will be reinstated into the department in full. As Cull notes, while she’s been away, it seems as if people at the DoC have been attempting to distance themselves from the document. What these political shenanigans will mean for the bill going forward, however, remains to be seen.
The LINK Centre summed it up succinctly in its submission: “There are certainly problems with the legislation governing the broad ICT sector and with the effectiveness of the regulatory institutions governing the sector. But these cannot be resolved by the introduction of what appears to be a hastily conceived and poorly drafted ‘proposed’ bill, several aspects of which appear to be manifestly unconstitutional, and which deeply undermines the possibility of effective and independent regulation of the sector.
“The LINK Centre, therefore, calls upon the Department of Communications and the Minister to institute a formal, structured, consultative stakeholder process to debate and consider the most appropriate policy and legislative interventions to ensure effective, independent regulation of the ICT sector in the future.”
- ITWeb Brainstorm Cover Story
South Africa’s post, telecommunications and broadcast sectors are governed by an independent regulator – the Independent Communications Authority of South Africa (Icasa). Created out of the old South African Telecommunications Regulatory Authority (Satra) and the Independent Broadcasting Authority, Icasa came into being in 2000, per the Icasa Act.
Regulators exist to manage scarce resources (frequency spectrum in this case), to ensure that the interests of the public are served where commercial interests would otherwise dominate, and to ensure, in sectors where monopolies traditionally dominated (so-called natural monopoly sectors) that liberalisation happens, and that everyone plays fair while it’s happening, among other reasons.
Internationally, the trend towards regulating to control sectors has now reversed and deregulation is becoming the norm, with regulators like Ofcom in the UK taking an increasingly hands-off approach.
In South Africa, the regulator has been under-resourced, subject to capture by either political or commercial interests and overall ineffectual, since its creation.
The Icasa Amendment Bill, or as the Department of Communications prefers to call it, the ‘proposed’ Icasa Amendment Bill, was gazetted on 25 June. Respondents were given 30 days to comment on a Bill that has far-reaching implications for the broadcasting and telecommunications sectors. The department intends to take the bill to Parliament this year still.
Says Save our SABC (SOS) campaign coordinator Kate Skinner: “No one knew it existed for the first five days; Icasa didn’t advertise it. We picked it up from the Government Gazette via lawyers we know who scrutinise it. As such, we didn’t have 30 days to consider it, we didn’t have prior notice, we had no information on why the department was introducing it. Reading it, it became obvious the DOC is trying to deal with Icasa’s inefficiencies and slow turnaround times.”
Unfortunately, the DOC is trying to deal with this by putting more responsibility on the Minister and less on the Authority. Dominic Cull, Ellipsis Regulatory Solutions, fears the Icasa Amendment Bill threatens the regulator's independence. The bill amends the existing legislation to do the following things, Skinner says:
- change the position of CEO to chief operations officer (COO)
- clearly differentiate between the functions of the Council and the COO
- improve turnaround times
- establish a Tariff Advisory Council
- improve the functioning of the Complaints and Compliance Committee
- remove Icasa’s frequency spectrum management role
- enable the Minister to assign functions and roles to the chair and councillors
- enable the Minister to appoint members of the Complaints and Compliance Committee
- enable Icasa to continue working even when there are legal challenges on the table.
Some of the above amendments, at least two of which would be welcomed by the sector, are problematic for several reasons.
Undue interferenceFirst problem, says Skinner, is that changing the CEO into a COO will remove the accounting officer from the agency, in direct contravention of the Public Finance Management Act.
Second, by being able to assign roles and functions to the councillors and chairperson, the Minister would be able to directly interfere with, for example, licensing, and influence which licences are granted, or not.
“This is directly at odds with international standards and principles,” Skinner comments.
Says Dominic Cull, founder of Ellipsis Regulatory Solutions: “The amendment gives the Minister the right to assign fields of competency that each councillor oversees. I can’t see how that sits with the notion of independence on the part of the regulator. I appreciate that independence is a relative concept in this context, but in terms of South Africa’s World Trade Organisation obligations, we are obliged to have a regulator independent of government and this proposal infringes that. As far as broadcasting is concerned, it infringes on chapter nine of the Constitution (which says that national legislation must establish an independent broadcasting authority).”
Third, the amendment bill arbitrarily reduces turnaround times by half, so where the Act says 180 days, it would drop to 90 days; where it says 60 days, it changes to 30, and so on.
Says Cull: “We’re quite happy that they are looking at reducing the time periods but certainly not at the expense of the public consultation period. The amended clause says it wants to reduce unreasonably long consultation periods, which is lovely and would be great to achieve, but you can’t do that by reducing the consultation period from 60 days to 30. Some enquiries are by nature complicated and to give public and industry 30 days to research and comment is not acceptable.”
------------------------------------------------------------
The bill in its current form gives every appearance of seeking to undermine Icasa and gives every indication of a deteriorating relationship between Icasa and the DOC. Dominic Cull, Ellipsis Regulatory Solutions.
------------------------------------------------------------
Fourth, that the Minister evaluates councillors is inappropriate. The amended provision gives the Minister the power to chair the Evaluation Panel, says Skinner, which will be responsible for tenure and possible removal of councillors and the chairperson.
“This potentially directly undermines the independence of councillors and again raises the danger of political interference in the workings of the regulator,” Skinner notes.
Fifth, in order to remain independent, she says, Icasa must have the power to appoint the people it feels will best serve on the Complaints and Compliance Committee. Assigning this responsibility to the Minister will undermine that.
Sixth, enabling Icasa to continue working on something while it is subjected to legal challenges is problematic. “The amendment states that the authority must continue with function until a court order directs otherwise. I love the idea,” says Cull, “but I have no idea how it’s going to operate in real life.
“So Telkom, for example, will go and get an interdict that says Icasa cannot implement the call termination rate (CTR) regime when it is published. If Icasa continues in the face of that, it would open itself up to legal liabilities. Say it publishes a CTR regime that says mobile operators must reduce rates from 89c to 65c on 1 March 2011 and an operator challenges that in court, and Icasa carries on until a court decides otherwise. If the operator implements the new rates, it could lose millions in revenue. If the court finds in its favour, it will have lost that revenue needlessly. What does it do then – sue the regulator?”
As for the Tariff Advisory Council, he says: “In principle it’s not a bad idea but we need more information on how it will operate. I do not like the notion of a body sitting in Icasa that is appointed by the Minister and can act at his behest. I don’t see how that will help Icasa function effectively. It introduces a political element and raises the independence argument. The same argument arises with amendments to the Complaints and Compliance Committee, which propose greater involvement of the Minister. Without further information, it is impossible to see how that will improve Icasa’s functioning.”
Lastly, amending Icasa’s function from managing spectrum to merely assigning it is in conflict with the
Electronic Communications Act.
Bolstering Icasa
What the regulator needs, Skinner and Cull agree, is money.
“An independent regulator requires sufficient financial resources to carry out its activities,” said the LINK Centre, Wits University’s ICT research and training arm, in its submission on the proposed amendments. “Icasa should not be subject to any form of financial pressure from the Minister or the DoC, which could be used to punish it for actions or decisions unpopular with the government of the day, or to apply indirect political pressure upon its mandate. And the regulator should further be required to account to the nation publicly and transparently. Icasa is already constrained in this respect, given that its funding comes through Parliament rather than from licence fees, and that both its budget and annual report require the involvement of the Minister, albeit they are approved by Parliament.”
“If we had a proper policy review process, we could look at it to ensure the regulator is funded properly so it can work in favour of users, not private organisations or government,” says Skinner, raising a common complaint – proposed legislation or amendments no longer go through the green and white paper consultation process, which means legislation that is fundamentally flawed gets to bill stage before this becomes apparent once public consultation starts.
“There’s clearly a problem with Icasa,” says Cull. “This is nothing new. Since the dawn of Satra in 1996, the regulator has suffered under capacity and finance constraints and has not been able to discharge its duty in a competent manner. It would be lovely if the bill took the view that we should bolster Icasa and allow it to discharge its current function. The bill in its current form gives every appearance of seeking to undermine Icasa and gives every indication of a deteriorating relationship between Icasa and the DoC.”
That the body at the DoC pushing this legislation forward is an ex-Icasa councillor has probably not helped matters.
-----------------------------------------------------------
...obvious [that] the DOC is trying to deal with Icasa's inefficiences and slow turnaround times. Kate Skinner, SOS.
-----------------------------------------------------------
Said body, Mamodupi Mohlala, director general of the DoC, was on leave pending redeployment at the time of writing, having been fired by the Minister and then reinstated. Should an alternative position not be found for her, she will be reinstated into the department in full. As Cull notes, while she’s been away, it seems as if people at the DoC have been attempting to distance themselves from the document. What these political shenanigans will mean for the bill going forward, however, remains to be seen.
The LINK Centre summed it up succinctly in its submission: “There are certainly problems with the legislation governing the broad ICT sector and with the effectiveness of the regulatory institutions governing the sector. But these cannot be resolved by the introduction of what appears to be a hastily conceived and poorly drafted ‘proposed’ bill, several aspects of which appear to be manifestly unconstitutional, and which deeply undermines the possibility of effective and independent regulation of the sector.
“The LINK Centre, therefore, calls upon the Department of Communications and the Minister to institute a formal, structured, consultative stakeholder process to debate and consider the most appropriate policy and legislative interventions to ensure effective, independent regulation of the ICT sector in the future.”
- ITWeb Brainstorm Cover Story
The communications industry settling at last?
It feels as if a tsunami has hit the South African communications industry with one clean sweep of a tidal wave
It feels as if a tsunami has hit the South African communications industry with one clean sweep of a tidal wave moving obstacles out of the way and creating a new environment – and all that in a short space of time.
Politicians and analysts have greeted President Jacob Zuma's axing of Siphiwe Nyanda as communications minister and his expulsion from cabinet with surprise but as good news for the ailing sector.
While changes in cabinet have been on the cards for some time, it was not expected that Zuma would axe Nyanda as he is a close political ally. Nyanda has been dogged by controversy ever since taking office as minister, with allegations that he benefited from dodgy tenders. His dismissal of director-general Mamodupi Mohlala and interference in the digital migration process had the communications industry up in arms. With the huge public outcry President Zuma had little other choice than to part with his strong political ally – after all, payback time cannot last forever.
The appointment of Radhaskrishna "Roy" Padayachie is considered good news for the ailing Department of Communications (DOC) as Padayachie is known to the ICT sector – he served as deputy communications minister from 2004 until 2009, when he took up the position of deputy minister of public service and administration.
During the past year the DOC has been a disaster and through interference by Nyanda became totally paralysed. Actions by the minister almost shipwrecked the television digital migration initiative and the firing of the DG and the turmoil in Sentech added more fuel to the destruction of the communications sector. A huge job awaits Padayachie but judging from his past performance as deputy minister under the late Ivy Matsepe-Casaburri I believe that he is capable of delivering what is expected from a communications minister. He led the Pricing Colloquium in 2005 that ultimately led to the liberalisation of the market as it is today.
Dina Pule, Nyanda’s deputy, has also been replaced. Former parliamentary house chairman Obed Bapela has been appointed deputy minister of communications. Bapela is well known for his criticism earlier this year of MPs, following a report that revealed the majority of parliamentary workers are computer-illiterate.
Talking about pricing, the latest announcement on call termination tariffs and the publication of the new policy in the Government Gazette, although long overdue, took most of us by surprise. The Independent Communications Authority of South Africa (ICASA) has amended its initial proposals on cost-oriented rates to ensure that these regulations achieve the goal of fostering competition as well as maintaining employment and investment in the ICT sector. Over a period of time call termination rates will be dramatically reduced, paving the way to more affordable communication rates.
Telkom’s expected entry into the mobile market caught its rivals by surprise and saw a quick response from Vodacom. It seems that a price war is looming.
Announcing simple and affordable products and services, Telkom Mobile's 8ta executives claimed their services will be regarded in South Africa as the one that will “get people to talk more”.
Managing executive of Telkom Mobile Amith Maharaj told EngineerIT, “we will provide the platform for South Africans to communicate more. I’m not exaggerating when I say that this is the start of a new era in mobile phone communication in South Africa. Consumers will at last have a real choice.”
He promised that 8ta products would offer more value than any other network provider. For the first time in South Africa, all prepaid customers will benefit from free talk time to any network every time they receive calls from a mobile phone – 1 free second of airtime for every three seconds of calls received. This benefit is available all day, every day. It appears that Telkom Mobile has been closely watching the insurance industry, which offers pay back around every corner!
Further, calls from 8ta to fixed line will cost 60% less than typical market rates for similar calls, and there will be a flat rate of R2,50 per minute to over 100 international destinations. Additionally, when you send 5 SMSs in a day, 8ta will give you 50 bonus SMSs at no extra cost to use that same day.
8ta has constructed 800 base stations across the country, and plans to construct a further 3200 base stations over time to improve coverage and connectivity. The services have been built on an end-to-end all-IP 2G and 3G network, which is easily upgradeable to LTE (4G).
As the success of the World Cup still rings in our ears it appears that the communications sector has taken heed of the “Lead SA” campaign of Radio 702 and major newspapers. Let’s hope it doesn't just stay here and that we will get more pleasant surprises in 2011.
- Hans vd Groenendaal, EngineerIT
It feels as if a tsunami has hit the South African communications industry with one clean sweep of a tidal wave moving obstacles out of the way and creating a new environment – and all that in a short space of time.
Politicians and analysts have greeted President Jacob Zuma's axing of Siphiwe Nyanda as communications minister and his expulsion from cabinet with surprise but as good news for the ailing sector.
While changes in cabinet have been on the cards for some time, it was not expected that Zuma would axe Nyanda as he is a close political ally. Nyanda has been dogged by controversy ever since taking office as minister, with allegations that he benefited from dodgy tenders. His dismissal of director-general Mamodupi Mohlala and interference in the digital migration process had the communications industry up in arms. With the huge public outcry President Zuma had little other choice than to part with his strong political ally – after all, payback time cannot last forever.
The appointment of Radhaskrishna "Roy" Padayachie is considered good news for the ailing Department of Communications (DOC) as Padayachie is known to the ICT sector – he served as deputy communications minister from 2004 until 2009, when he took up the position of deputy minister of public service and administration.
During the past year the DOC has been a disaster and through interference by Nyanda became totally paralysed. Actions by the minister almost shipwrecked the television digital migration initiative and the firing of the DG and the turmoil in Sentech added more fuel to the destruction of the communications sector. A huge job awaits Padayachie but judging from his past performance as deputy minister under the late Ivy Matsepe-Casaburri I believe that he is capable of delivering what is expected from a communications minister. He led the Pricing Colloquium in 2005 that ultimately led to the liberalisation of the market as it is today.
Dina Pule, Nyanda’s deputy, has also been replaced. Former parliamentary house chairman Obed Bapela has been appointed deputy minister of communications. Bapela is well known for his criticism earlier this year of MPs, following a report that revealed the majority of parliamentary workers are computer-illiterate.
Talking about pricing, the latest announcement on call termination tariffs and the publication of the new policy in the Government Gazette, although long overdue, took most of us by surprise. The Independent Communications Authority of South Africa (ICASA) has amended its initial proposals on cost-oriented rates to ensure that these regulations achieve the goal of fostering competition as well as maintaining employment and investment in the ICT sector. Over a period of time call termination rates will be dramatically reduced, paving the way to more affordable communication rates.
Telkom’s expected entry into the mobile market caught its rivals by surprise and saw a quick response from Vodacom. It seems that a price war is looming.
Announcing simple and affordable products and services, Telkom Mobile's 8ta executives claimed their services will be regarded in South Africa as the one that will “get people to talk more”.
Managing executive of Telkom Mobile Amith Maharaj told EngineerIT, “we will provide the platform for South Africans to communicate more. I’m not exaggerating when I say that this is the start of a new era in mobile phone communication in South Africa. Consumers will at last have a real choice.”
He promised that 8ta products would offer more value than any other network provider. For the first time in South Africa, all prepaid customers will benefit from free talk time to any network every time they receive calls from a mobile phone – 1 free second of airtime for every three seconds of calls received. This benefit is available all day, every day. It appears that Telkom Mobile has been closely watching the insurance industry, which offers pay back around every corner!
Further, calls from 8ta to fixed line will cost 60% less than typical market rates for similar calls, and there will be a flat rate of R2,50 per minute to over 100 international destinations. Additionally, when you send 5 SMSs in a day, 8ta will give you 50 bonus SMSs at no extra cost to use that same day.
8ta has constructed 800 base stations across the country, and plans to construct a further 3200 base stations over time to improve coverage and connectivity. The services have been built on an end-to-end all-IP 2G and 3G network, which is easily upgradeable to LTE (4G).
As the success of the World Cup still rings in our ears it appears that the communications sector has taken heed of the “Lead SA” campaign of Radio 702 and major newspapers. Let’s hope it doesn't just stay here and that we will get more pleasant surprises in 2011.
- Hans vd Groenendaal, EngineerIT
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