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VoIP Booming in Africa

securitas writes "The NY Times reports on the rapid growth of voice-over-IP telephony (VoIP) in sub-Saharan Africa and the battles it is waging with the government monopolies/ILECs. VoIP upstarts are taking market share from the government telcos, making it vastly more affordable to make a phone call since they don't charge the usual exorbitant tariffs and excessive user fees. Governments have responded by shutting down these operations, seizing equipment and cutting off service to lines they suspect of using Internet telephony. Part of the boom is related to the wait times for getting a phone line (Ghana Telecom has a backlog of 300,000 line requests), poor quality of service (50% of time you get a busy signal instead of a dial-tone) plus the willingness to trade voice quality for basic service. Foreign companies are now setting up VoIP call centers and multinationals like gold giant Newmont Mining plan to use VoIP for communications in and out of Africa. Some observers call Accra the next Bangalore, predicting a boom for the region that may make sub-Saharan Africa a major technology hub. This fits nicely with Kofi Annan's drive to use the Internet and wireless networks to change the lives of the poor."

3 of 172 comments (clear)

  1. Your mileage may vary by Snake_Plisken · · Score: 4, Insightful

    Our offshore call center uses VoIP. Quality is shakey, it is difficult to hear, and calls get dropped or crossed with other service providers out of that facility. If Ghana has no other option (the 300,000 waiting list makes it sound like they don't) then I guess anything is beter than nothing, but as a professional business tool I don't think VoIP is there yet for rock solid stability and clear communciation.

    --

    Eat recycled food - it's good for the environment, and OK for you.
  2. With a bit of luck... by rjch · · Score: 5, Insightful

    ...this will be the start of the demise of telephone networks - at least over in Africa, anyway. VoIP is getting more and more refined, along with more and more applications, such as the GPL'd Asterisk software PABX system. Most of the larger PABX systems I've seen around give the capability for VoIP links to other offices and if suitable gateways become more widely available, the move to VoIP will slowly but surely become more widespread as the larger companies that deal with the countries that have widespread VoIP penetration start to use those links to reduce the cost of making phone calls.

    Can't come soon enough for my liking.
  3. Re:Irony? by jc42 · · Score: 4, Insightful

    How ironic is it that third world nations could end up leading the way in voip adoption?

    Not at all; that's exactly where you'd expect it to happen first. In more advanced countries, you'd expect the established phone companies to have the clout to block it.

    But it's not even true that third-world nations were first. There have already been a lot of stories about how most of the new phone service in Japan is now VoIP. And Japan isn't exactly a third-world nation.

    The real puzzle is why Nippon Tel didn't manage to block it.

    Here in the US, we've been reading about how the phone system has gone to IP for essentially all long-distance traffic. But the phone companies have done a good job of blocking VoIP at the retail level, because this would destroy their main source of income.

    --
    Those who do study history are doomed to stand helplessly by while everyone else repeats it.