Monday, 19 May 2008

Post Newspaper throws hat into ISP business

"The move to establish Post ISP Zambia was prompted by the continued complaints of extremely low internet connectivity speeds on account of old technology deployed by our current providers of internet services. The failure to deploy latest technology has resulted in low market penetration, high roll out costs and inefficient service provision which have been passed on to the users leading to prohibitively high costs of accessing the service.

In response to this, Post ISP Zambia has acquired and will be rolling out superior equipment based on WiMAX (Worldwide Interoperability for Microwave Access) technology, which not only provides a cost-effective roll out advantage, but will help boost internet access among our people and will work towards bringing down the cost of service provision in this sector.

This technology will enable Post ISP Zambia to provide other new services not limited to broadband internet access, such as IPTV, backhaul for Wi-Fi hotspots, VoIP, and many more.

And even though currently Zambia has seven ISPs, there are still many segments of our country that are underserved or poorly served or not served at all with regard to internet speeds and connectivity. Post ISP Zambia will provide a key service to our people by being the catalyst for e-mail commerce development, low-cost internet services and increased web interaction with the world.

Post ISP Zambia will be able to tailor design services to fit many different needs. Consulting, web hosting, internet security, and maintenance are all add-on services that can add to the broad product range that Post ISP Zambia will offer.

It is envisioned that with the launch next month of Post ISP Zambia, the nation will finally have a service provider that plans to grow with the community and understands its needs.

In this way, we hope to contribute to making the reach of communication technology universal and its benefits shared equally.

With Post ISP Zambia, we hope to contribute to the linking of ICT with human development and contribute to the building of a global inclusive, people-centred and development-oriented information society through the sharing of information and knowledge."

Zambia's Post Newspaper has announced it is to run a broadband ISP service under the name Post ISP Zambia. In a sweeping statement that part accused the existing ISPs of not doing enough to really improve ICT services for the common Zambian, the Post said it would be going the whole nine yards with not just broadband internet access, but also such new services as ITPV, backhaul for WiFi hotspots, VoIP, and many more. To do that, they will be going with the new wireless technology WiMAX.

The Zedian wonders what regulatory approval Post ISP Zambia has got to provide VoIP and IPTV and will try to get to some answers on. Currently Zambias telecom regulator CAZ has only allowed VoIP to be used to provide a 'licensed service'.

Yes, WiMAX is currently the technology of choice for rapidly rolling out services in emerging markets such as Zambia where copper wire lines are too few and it's too expensive to lay new ones. However, the Post ISP will not be the first to offer broadband services based on this technology in Zambia; Zamnet Communications Ltd pioneered the technology with kit from Navini, which is now acquired by Cisco Systems.

Despite the Post ISP statement sounding rather philosophical in places, (especially when they mentioned their service contributing to a "people-centred, development-oriented information society"), I think this will shake up the ISP market in Zambia and may genuinely lead to much improved services at reasonable prices, and increased ICT penetration. Currently, price of broadband in Zambia is around $100 per month, at the last check. This is in a 3rd world country where 80% of the population live on less than $1 a day.

Watch this space as this exciting story unfolds!

5 comments:

  1. Sometimes I feel CAZ is a stumbling block instead of being the facilitator. The Post, if their investment succeeds, are just responding to the ICT 'convergence theory' where telephony, computer technology and the cultural aspect of the media such as the information, entertainment and education aspect of it, is coming together.
    The problem is that there is so much ignorance among Zambians as to what ICT can do apart from reading forwarded jokes (read spam) on Yahoo and looking for second hand Japanese cars on the internet without appreciating other benefits.
    For newspaper companies, computers are just used to type stories and laying out pages. One newspaper companies even stops its employees from using computer to computer VoIP-imagine!
    Let us just keep fingers crossed for them to succeed.

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  2. You're very right. I have questioned before the CAZ's current policy on VOIP, which says in part

    "VOIP is permitted for use only as a technology for providing a licensed service and not as a service by itself". The full document policy document can be found here

    This policy is incompatible with the future of ICT. The Zambian regulator seems more interested in protecting the revenue of the incumbent telecoms provider Zamtel, than in increasing the people's access to ICT.

    The regulator should not be allowed to stand in the way of entrepreneurs who've found novel ways to boost ICT penetration, while making some money for themselves, and thereby contributing to positively to the Zambian economy.

    So we're appealing to the Zambian regulator to open their minds and see the bigger picture. Zambians have found solutions to ease their long suffering from lack of access to high speed, cheaper and more readily available ICT. Zamtel has failed to significantly improve ICT penetration in Zambia. ADSL broadband technology has struggled in Zambia because of insufficient and often poor quality Zamtel copper lines. Therefore, wireless and packet technology is the future. CAZ, forward thinking is the key here.

    Here's the UK's regulator Ofcom's policy on VOIP fr comparison.

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  3. Zedian,

    Thanks for your post on my blog. What Zambia lacks is adequate research especially in the area of ICT and IT respectively.

    Ever since the national ICt policy was launched, Zambia has seen new developments in the area of ICT.

    We welcome more players in the ICT industry so that costs of access to the internet may be brought brought down.

    There is also need for Zambia to produce more engineers if we are to succeed in IT developments in the country. We need more people to receive computer training.

    Just think of it many schools teachers do not know how to use a computer.

    Much of our rural community is also literate and they cannot use the internet because of language barrier.

    So as Zambians we need to work hard and see to it that many people have access to computers.

    Now concerning VoIP issues in Zambia.

    Well there are some guildlines of the use of VOIP in Zambia which where announced by CAZ which refer to VoIP as:

    Being a generic term referring to a technical standard that enables the transmission of voice traffic in whole or part, over one or more networks, which use the Internet Protocol (IP). The Internet protocol is a data-oriented protocol used primarily for communicating data across a packed switched internetwork.

    The guildlines include;
    Any entity wishing to provide a telecommunication service license issued by communications Authority.

    Communications Authority practices a technology neutral framework of licensing which entails that licensees are at liberty to deploy technologies of their choice provided that they provide only the specific services permitted in the license terms and conditions issued to them.

    VoIP is permitted for use only as a technology for providing a licensed service and not as a service itself.

    Any entity operating a closed user group private network or providing internet services are required to obtain an appropriate license from Communications Authority.

    closed user group private networks and internet service providers are not permitted to transmit for themselves or otherwise voice traffic to international destinations using any other means other than authorized international voice traffic carriers.

    Routing of international voice traffic through any other entity other than an authorized carrier constitutes an illegal activity.

    CAZ even goes ahead to to issue a WARNING : that any person found aiding or betting the illegal transmission of voice service to international destinations will be acting at variance with the law and will be prosecuted.

    The Authority even promised to conduct random inspections on the operations of private institutions and internet service providers to ensure that no such activities are being conducted.

    Well i have asked several questions on weather VoIP was illegal in Zambia. Also i have seen so many people in internet cafes using VoIP facilities from PC to PC which is allowed from the look of things.

    I know of no arrests that have been done over use of VoIP in Zambia. I believe that teh government wants to protect Zambia Telecommunication Company (ZAMTEL) which is a carrier that transmits voice services in Zambia to international destinations so that at least it can make money and remain in business.

    on the issue of The Post and its ISP business, i should believe they have done their ground work. But as long as they will use satellite services then their services will still be expensive as we now have ZAMTEL putting up metropolitan fibre optic which is supposed to be cheap.

    There is digging going on in the City of Lusaka in readiness for the Metropolitan fiber optic. Just out of curiosity, I asked one of the diggers if they know what this fibre optic was all about and the answer was that they did not know it.

    The ZAMTEL developments of laying Optic fibre in the Metropolitan City of Lusaka will help to reduce the cost of using satellite. ZAMTEL is the company in Zambia which has signed a memorandum of understanding with the EASSy consortium to link Zambia to the international fibre optic network.

    The National ICT Policy notes that in order to leapfrog the existing capacity and technology requirements for overhauling the existing telecommunications infrastructure, thereby laying a solid foundation for delivering current and future services ranging from digital Radio, Television, Internet, data and other multimedia services.

    Fibre based Technology provides a comprehensive and reliable network for the country. The possibility of reducing telephone and internet costs can be achieved by interconnecting the proposed national Fibre Optic Network to the undersea cable running along the African coast connecting to Europe and Asia, some of the most active destinations for Zambia.

    The ICT policy however says this requires implementation modalities in terms of network licensing, access conditions, management and operation of the backbone in the most optimal and beneficial manner to the entire country.
    Zambia has in the recent past seen utility companies such as the Zambia Electricity Company (ZESCO) and the Copperbelt Energy Corporation (CEC) lay and commission the installation of optic fibre in their system to provide quality service.

    ZAMTEL is currently installing the fibre network at a total cost of US 48 million while ZESCO spent 13 million to complete the optic fibre network that has covered 1,700 kilo meters from Sesheke through to Livingstone and Lusaka through to Kabwe and the Copperbelt up to Solwezi.

    Is the competition by the two state owned utility companies necessary?

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  4. Brenda,
    Thank you very much for summarising the CAZ VoIP policy. It is shocking to say the least. This is one issue I have discussed with the Zedian blogger when we meet in the neighbourhood pub. My conclusion is that the ICT policy being pursued by Zambia is a hindrance rather than enhancing the promoting the use of ICTs. It appears to me that even using common and free programs (as relates to computer-to-computer communication) such as Skype, Yahoo Messenger, Google Talk, is illegal. I personally use Skype and (more and more) Yahoo Messenger to phone my kith and kin in Zambia because it is far cheaper than my fixed phone service provider to phone Zambia. Someone must raise these issues!
    This brings me to the issue of the FoI Bill which I referred to in my blog a few weeks ago, YOU CAN SEARCH ANYTHING relating to a country on Google and other search engines such that it makes holding back on such legislation an exhibition of gross ignorance of technology and globalisation.

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  5. Brenda,

    "There is also need for Zambia to produce more engineers if we are to succeed in IT developments in the country. We need more people to receive computer training."

    You're absolutely right. Previously, the vast majority of Zambian engineers came from ZCCM (in it's hay-days). This former mining behemoth realised the importance of having a highly skilled workforce and therefore created a robust training policy for their manpower ranging from medical personnel, accountants, engineers, and even cooks, to name but a few. ZCCM built world-class schools and colleges where those selected were taken thru' their paces and given the highest quality training.

    The Zedian is proud to say that he is one such product of ZCCM! I went to Mpelembe Sec School (the 'Eaton College' of Zambia at the time) and later Manchester University.

    But with the collapse of ZCCM came the end of quality manpower in the country, particularly engineers.

    While the need for quality engineering personnel has never been higher, what with the current economic boom, the private companies in the ICT, energy, mining, agric, and other sectors are just NOT investing in training. If they want quality workforce, they must train that workforce and also invest in students and relevant schools at the two State universities. The School of Natural Sciences at UNZA is struggling.

    I have always spoken highly of companies in Zambia that offer internships to university students during their study breaks (and those notorious closures), giving them valuable practical experience and skills for when they complete. I used to work for one such IT company in Zambia. This practice is very common in the West where the BTs, IBMs and Microsofts of this world take on interns and give these students valuable experiense, while the companies also gain by having students as extra staff who can be used for short projects, etc. It's a win-win situation for both sides.

    The country's leadership must make up its mind whether they want to play a leading role in ICT, as the Asians and Brazilians have done, or just use ICT to elevate literacy and development. Either way, robust policies and clear direction are needed.

    On the VOIP issue, CAZ policy is two pages long, while Ofcoms policy is so comprehensive. Have a look at the links I posted previously. CAZ should not be struggling with this because they're not the first ones to implement such. They just have to investigate what wonders VOIP is doing in other countries. In the UK, currently, 12% of all calls are now on VOIP, see this report. And it's growing.

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