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VOIP: Challenges and Regulation

VOIP: Challenges and Regulation. Presented by: Hiba Abbas , Sudatel Telecom Group. Outline. VOIP Stakeholders Effects on Market Regulation Challenges Regulation Trends Regulation Real Cases Conclusion. VOIP Stakeholders.

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VOIP: Challenges and Regulation

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  1. VOIP: Challenges and Regulation Presented by: Hiba Abbas, Sudatel Telecom Group

  2. Outline • VOIP Stakeholders • Effects on Market • Regulation Challenges • Regulation Trends • Regulation Real Cases • Conclusion

  3. VOIP Stakeholders key stakeholders of VOIP technology and application can roughly be grouped into five categories : • Consumers • Enterprises • Operators • Carriers • VOIP Providers • Government

  4. Operators • better resources utilization • flexibility in connectivity • loss in TDM revenue • high level of competition • lower OPEX-CAPEX • customer satisfaction & loyalty • bigger market share • loss in international call revenue • additional competition Enterprises • lower OPEX-CAPEX • better efficiency & ROI Carriers • lower cost • better quality • ease of access • lower market entry barrier • high revenue Vs low investment • global competition Consumers VOIP Stakeholders VOIP Providers VOIP Stakeholders • competitive market • unlicensed exploitation of market • national security issues • reduced income from taxes Government

  5. Effects on Market

  6. Effects on Market Ghana Telecom’s revenues from international calls dropped from USD 42 million in 1998 to USD 14.4 million in 2002 . (ITU news, September 2009, “VOIP comes of age”) A call to US dropped from 120Ksh in 2006 to 5Ksh in 2012 in Kenya. In 2006Kenya’s SAFARICOM uses VOIP to halve international call rates. (Balancing act, 2006, Issue no. 311) In June 2012, REVECTOR reported that mobile telcos and governments were losing $150m from the illegal termination of minutes. This involves rogue SIM-box operators terminating VoIP originated international calls on a local SIM card so as to mask its origin. (Emeka Obiodu, September 2012, “International call revenue "cash cow" coming to an end”)

  7. Regulation Challenges • Quality • Numbering • Emergency calls • Security and Lawful Interception • Standardization • Categorization

  8. Regulation Trends • Encourage spread of data services by deregulation. • Support free market through special licenses for VOIP. • Authorization per specific geographic areas. • Allowed but no VOIP gateway within country. • Prohibited. • No regulation.

  9. Regulation Real-case SUDAN • Licensed carriers are allowed to use VOIP in interconnections only. • retail VOIP has no regulation. MAURITIUS • IP Telephony Service. • Two licenses types based on termination; international and Internet. ALGERIA • Licensed voice operators allowed. • Other operators need authorization. • Encouragement towards rural areas. NIGERIA • VOIP is technology not service. • Operators are allowed based on their license type. • Equipments need type-approval.

  10. Conclusion • Regulation will provide the proper framework to evaluate VOIP implementation. • The global trend towards ALL-IP can’t be overlooked. • AFRICA has a lot of potential and IP-based services might be the solution.

  11. Source: www.flickr.com, “Steve Song Photo stream”

  12. Source: www.flickr.com, “Steve Song Photo stream”

  13. References • ITU news, September 2009, “VOIP comes of age”,http://www.itu.int/net/itunews/issues/2009/07/21.aspx • Balancing act, Issue no. 311, http://www.balancingact-africa.com/news/en/issue-no-311/telecoms/kenya-s-safaricom-us/en • Emeka Obiodu, September 2012, “International call revenue "cash cow" coming to an end”, http://ovum.com/2012/09/06/international-call-revenue-cash-cow-coming-to-an-end/ • Tracy Cohen, Russell Southwood, 2004, “AN OVERVIEW OF VoIP REGULATION IN AFRICA:POLICY RESPONSES AND PROPOSALS”, http://www.cto.int/Portals/0/docs/research/VoIP_Report_REVISED.pdf • Opal Lawton, July 2007, “REPORT ON VoIP”, http://www.canto.org/document_center/canto_reports/report-on-voip • Telegeography Report, 2011, http://www.telegeography.com/page_attachments/products/website/research-services/telegeography-report-database/0002/6653/TG_executive_summary.pdf • Kenya SAFARICOM,http://www.safaricom.co.ke • www.wikepedia.org

  14. Thanks!!!

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