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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."

4 of 172 comments (clear)

  1. 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.
  2. I was there.. by Anonymous Coward · · Score: 5, Informative

    I was in Ghana a few months ago for twelve weeks.

    VOIP is illegal, aside from strictly personal use as it represents potential for competition with the phone company. Ghana Telecom only wants to implement VOIP such that it may save them more money to increase their bottom line.

    In fact, as I understand it, they have implemented it to a rather large degree, and have yet to pass any savings to their extremely poor customer base. Internet cafes outside of the capital, Accra, often pay somewhere in the vacinity of $1000 per month[1] simply in long distance charges, as no ISPs exist outside of the two major cities. Despite the fact that the infrastructure exists to extend leased lines and add pops in many locations throughout the country, Ghana Telecom has no interest.

    USAID, in an ill-advised attempt to help has set up and fully funded telco charges for some remote internet cafes but left behind no administration, allowing the established companies to severely undercut their competition.

    [1]: 8,400 Ghanaian cedis equal one US dollar. Many people outside of the two major cities (Accra, Kumasi) often make under 100,000 per month. While this is often sufficient for housing and food, twenty cents per minute long distance charges are simply outrageous.

  3. open source VOIP is still not very well known ! by dominic.laporte · · Score: 5, Informative

    Its amazing how open source voip is unknown. Unfortunately not many people know this even exists. What a shame !

  4. Wohoo by loconet · · Score: 5, Funny

    Now it should be easier for me to contact the Nigerian Prince who needs me to transfer his money.

    --
    [alk]