Africa only stands to gain through the legalisation of voice over IP (VoIP) technology, as it can allow developing nations to 'leapfrog` to the forefront of the telecommunications market.
This is the view of Dan Powdermaker, senior VP for worldwide sales at iBasis, a VOIP provider, addressing delegates at the ITU Telecom Africa 2004 conference in Cairo.
He said there are numerous myths surrounding the concept of VOIP, such as that it is an idea that does not work, it is a technology that can be blocked and it is designed to aid new entrants into the telecoms market, while hurting incumbent operators.
"The reality is actually very different. Countries that enable this technology can only benefit from it, as can incumbents, because it does work well if it is done right," he said.
"VOIP offers Africa the opportunity to increase traffic volumes and foster economic growth, reduce prices for consumers, accelerate time to market and facilitate new value-added services development."
Powdermaker said that in terms of global trends, the regulatory environment is being relaxed and more regulators are enabling the technology.
"This move reflects the fact that VOIP is here to stay, it is a technology that works and it is growing."
Fosters competition
According to Dr Yaw Osei-Amoako, sales director for Africa at telecoms services provider ITXC, VOIP is an essential component for the ICT roadmap for the continent.
"It is something that will benefit both incumbents and new operators, since it offers different opportunities for growth."
He said incumbents can use VOIP to meet their regulatory obligations in terms of network roll-out, improve on network efficiency, maintain their competitiveness and complement or augment existing carrier agreements.
At the same time, it offers new operators instant access to the global market, it is efficient and scalable, therefore a good starting point for new players, and it can be used to differentiate them from their competitors.
"If the question is: should African providers adopt VOIP? I would reply that it is a well known and well established technology, so why are we even asking the question?" said John Stowe, MD for Africa at Net2Phone.
He said VOIP fosters competition, as it is the easiest and cheapest way to enter the market. It also prevents inflated retail pricing, as it keeps termination costs down, while competition of any kind also sparks further innovation.
"Packet-based technology is the only way to ensure affordable telecommunications for all Africans and is the best way to spark economic growth," concludes Stowe.
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