Friday, April 19, 2024

World Bank urges Zambia to review telecom issues

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As Zambia’s international gateway issues continue, the World Bank said a review is needed of the problems relating to infrastructure, regulatory and institutional requirements of the telecom industry in order to solve troubles affecting the sector.

The challenges in the telecom sector that Zambia is facing go beyond the issue of the international gateway, according to the World Bank country manager for Zambia, Kapil Kapoor.

“It is unfair to place the blame solely on the international gateway fees as the only hindrance to telecom sector development but to also look at other factors related to infrastructure development, regulatory and institutional requirements,” Kapoor said.

The Zambian government has refused to deregulate the country’s international gateway, claiming that doing so would put the security of the country at risk.

Private mobile operators Zain Zambia and MTN have been protesting the Zambian government’s regulation of the international gateway and the high cost of acquiring a gateway license.

The Ministry of Communications and Transport increased the international gateway fee two months ago from US$12 million to more than $18 million, making Zambia the most expensive country in Eastern and Southern African for private telecom investors to do business.

Meanwhile Private operators in Zambia must route their international calls through the government-owned Zambia Telecommunication Company (Zamtel), which owns and operate the international gateway. However, Zain Zambia and MTN issued a joint statement recently claiming that Zamtel’s gateway is experiencing increased failures on international calls.

Both operators have sent letters of complaint regarding the international call failures to Zamtel and the Communications Authority of Zambia.

IDG news

72 COMMENTS

  1. I cannot understand, this is the only country in southern African that does not allow VOIP through it’s ancient regulations, change them indeed ,it’s pathetic in this digital age.What do you expect when some leaders do not even understand IT, Rupiah & his Sata do they know what digage mean.

  2. Its a nightmare ringing Zambia from abroad.You have to try at least 10 times to get through at times. I don’t even know if smses reach.My fiancee thinks I don’t care meanwhile its Zamtels crap archaic infrastructure. Hope you read this sweetie I’m innocent!

  3. A lot of our problems are caused by the regulatory framework. We need to change with the times and the rules should reflect this. Or is that we need to send a delegation to Namibia to study their telecom laws?

  4. What has this World Bank got to do with this? This is entirely a Zambian problem which has to be solved by Zambians. Hey guyz, don’t just talk talk. Do something.

  5. IT IS REALLY DISHEARTENING TO MAKE A CALL TO ZAMBIA. I LEAVE IN THE MIDDLE EAST. MAKING A CALL TO EITHER A MOBILE PHONE OR LANDLINE FROM HERE IS NEXT TO IMPOSSIBLE. I CAN ONLY GET THROUGH IF I USE VIOP TO ONLY A LANDLINE. PLEASE ZAMTEL I THINK AM NOT THE ONLY ZAMBIAN OUTSIDE ZAMBIA EXPERINCING THIS PROBLEM CAN SOMEONE IN ZAMTEL DO SOMETHING ABOUT THIS PROBLEM

  6. Much as the infrastrucure is old, this is a Zambian problem and the World Bank owned by a few rich individuals from the west, has no business shoving its buttocks in our domestic affairs. Since when does a bank direct a government on how to handle its affairs. This is bullsh!t Kapil KaPOOR. You are a poor chap and you want our government to come running to you for loans with impossible rates you thieves. The international gateway issues will be regulated by the Zambian government as they see it fit. Kapoor and his commrades gat no business shoving your @sses in it.

  7. The only problem is that we are the ones who pay for this. Cellphones are too expensive to maintain. International calls are expensive. VOIP is impossible. Fire the director of Zamtel.

  8. If the Optic fiber will be as poorly managed as this then we probably need younger people to run these things. The older generation is just not in touch with the modern world. DOn’t know him but I think the director of Zamtel is old. The minister of communication is….well I won’t say much about her.

  9. A well developed communication system is one of the key factors to development especially in that Zambia a a member of the global community. It is really a nightmare to make phone calls to Zambia from overseas. The World bank is in the business of making money and development. It affects them just as much as anybody that depends on modern communication systems to do business. It is imperative that the Zambian government develop and implement sustainable communication infrastructural policies that will promote development. This requires well educated and technically informed managers to attain the desired and sustainable IT industry. Without this Zambia will continue lagging behind.

  10. Osama Bin Laden has not been caught because he does not use the internet or mobile phones. It is true that the security of a nation can be compromised if information technology is not handled correctly. There are clever people out there who could easily wipe out the Zambian bank customers savings with a tap of the key board. There must be a balance as to how exacly we can regulate while moving forward with the times. An IT industry in the hands of pikinins straight from college is not safe. Let the young IT professionals gain some experience first and then we take it from there.

  11. Calling Zambia from Outside is a nuisance.You have to keep on trying.

    Please lets improve our infrastructure in communication.

  12. Yeah ..calling home is a problem sometimes but then the government should not just deregulate because of pressure from the world bank. The bank is known to be dishonest, they might create loopholes for foreign companies to benefit at the expense of Zamtel.

  13. Awe mwandi it’s too much.what do we have to say it’s risky?
    Useless leaders!!!I can’t send sms 2 zed.people from home send me sms but i don’t get them but it shows msgs have been sent.
    What kind of a country is Zed without IT?I’m even worried to go back home because i don’t know which company can employ me.we really lack something zambia.Leaders seem not to care oabout IT that’s why we can’t even watch ZNBC online(internet).I don’t know what MMD is trying to protect because we are very behind in IT.we don’t have IT companies in zed therefore problems!!

  14. Does it mean the risk of privitising the International gateway applies to Zambia only? Common guys wake up. All the Countrie sorrounding Zambia have private and are more secure than us.

  15. KCM is sinking. The new owners have ground operations. Key positions are now in the hands of Indian boys from Mumbai. Suppliers not paid for months, Contracts and orders cancelled.
    Where is the Government? Bring back Anglo before the nation is brought to its knees or Nationalize the company.

  16. #17. russia- moscow
    We are behind in thinking sometimes. Equipment we may have but they don’t want people who know how to to use it.

    About Jobs, most russkie are doing just fine in Zed. What r u studying?

  17. One problem is the mismanagement of ZAMTEL. I dont see why the MDs position has to be political. This causes a lack of professionalisw. The last frontier in their defence against lean and mean private companies is the international gatewamy.

  18. A GREAT disappointment it is indeed for sweetZED to have been caught in this web of coms issues and yet we were the most reliable communications hub and router of the Southern African region. We should have been way ahead of everyone, including South Africa, as we had been for some time then when we were the only country having the Earth Station (Mwembeshi); a target of all freedom fighters in those good olden days! Kaya!!!

  19. @ MK #7 & NO WAY #9…..

    You may not know this, but one of the roles of the World Bank and IMF is to act as guarantor to western multinational investment,

    meaning before these companies invest in a 3rd world country they(WB and IMF) first must pave the way for these firms by leveraging these govts to open up and deregulate their markets and industries,

    in this case i think this beast called the WB is simply protecting it’s investment in Celtel/Zain which it acquired through its investment arm the IFC,…i think its 5% of Celtel/Zain or there abouts.

    regards

  20. We have to be realistic here. The issue of the gateway has to be handled in a nationalist way! We need to liberalize the gateway but am against a wholesome free for all issuance of the gateway license. Security concerns are genuine and as a way forward we need to advertise tenders for the two gateway licenses for operators to compete with zamtel. However no existing operator should be allowed to bid. Zamtel gateway should also be commercialized to compete with the new entrants and ran as an independent carrier. So issues of unbundling zamtel should not arise at all if we only take out carrier services from zamtel. We now in a converged telecom environment so we don’t necessarily need to unbundle zamtel. Account separation will be a headache.
    Communications authority is and will always be toothless as long as it remains a fully government run institution. There is no way caz can regulate zamtel! In a competetive market that should not be the case. Zamtel MD and caz CEO are both political appointees from the same pen!

  21. We need not rush to blame the Bretton Woods institutions for inteference. Why should we fail to manage our own affairs? They forgave our debt a few years ago and GRZ has already managed to double our sovereign debt within two years. They are protecting their interests but why blame them when we are not taking care of business?

  22. Here are the facts:

    1. Zain is a global mobile telecom company that hails from Kuwait where the International gateway is in the hands of the Govt.

    2. MTN is from South Africa where Telkom SA owns the gateway license.

  23. Don’t be cheated by these greedy business men who come to Africa to preach what they don’t practice. BT in UK, Telkom in SA and Safaricom in Kenya are all government owned or the goverment has the lions share. Let government sort the problem out. It can be easily fixed: give the ailiing parastal Zamtel a professional MD and not a cadre.

  24. Zain has been lying about who is to blame for the International calls and the dwanzy, dull and slow Zamtel has been taking the blame lying down. Everytime you ask Zain or MTN why your sms can’t get through to international destination, their call centres have been instructed to blame Zamtel.

  25. Zain will do anything to increase their profit margins. They will lie, cheat and corrupt to get the “cash cow” of the telecom industry.

  26. The IMF and World Bank would not be dictating terms and making all these recommendations if all was well and we didnt need their help. The problem is that our government does not allow the utility companies to operate as commercially viable independent institutions. Keep the international gateway but be professional. Even the report says the gateway is not the main problem.

  27. Zamtel should be part privatised with the goverment still maintaining the lions share. Vadafone UK has made some good successful corporations in Africa so far. Vodacom in SA and Safaricom in Kenya are good examples where the goverments there worked with Vadafone UK and still retained control.

  28. Zain is not telling the truth. They have serious technical problems to do with congestion. They are also the most expensive. That is why i resigned as MD of Celtel.

  29. Most of the big auditing firms in Zambia do not want to audit ZAMTEL and yet they could charge large fees. Reason: they do not want their integrity to be compromised.

  30. #35.True. A while ago Zamtel used a well known auditing firm to find an MD, the Govt intervene and cancelled the job search. A few days later, an MMD cadre was appointed as MD.

  31. #26 Kanshi walikwata amano nangu wachilanda amarabishi on the other blog about swimming pools
    i agree with in every way. but if gov cant run the Gate way and zamtel cant run who take over?? coz in zed we think foreiners are the only pipo who can run things

  32. that gate way has been a problem from early this year, they say there is increased traffic but i doubt it. some times they just dont pay for space on the transponder. they can learn from some SA Telkom, BT and and other state Ran, you know for internt Zamtel has the best Link followed UUnet. yet small ISPs like microlink seem to do better than zamtel. they pipo in charge are to blame. zamtel is so fast but the most expensive and poorly managed service. Mweb wanted to come to zed they turned them down. they went to Nigeria and they are happy, vodacom same story.

  33. If Zamtel has issues, its the governments fault. They have consistently been givin it bad MDs. But the World Bank has nothing but greedy interest in this matter. They have interest in Zain. They should remind of that before opening their mouths.

  34. Right now is not the best time for World bank or IMF to dispense economic wisdom. Let them go to figure out what is wrong with America where they come from before they can instruct us in economics. We want to hear from China not America at this point.

  35. Lets try first to answer the following questions may be they will help us .
    (1)How many subscribers does MTN have and
    how many subscribers does ZAIN ZAMBIA have/
    (2)Whats the capacity of MTN switch and
    what is the capacity of ZAIN ZAMBIA switch?
    (3)How many lines into ZAMTEL does MTN have and
    how many lines into ZAMTEL does ZAIN ZAMBIA have?
    (4)Is International gateway (MWEMBESHI) a transmission section or a
    switching section/

  36. (5)On making a call to ZAMBIA .Does ZAMTEL have a direct link with
    the country your calling from ?
    (6)Have ever visited ZAMTEL ( international gateway) and confirmed
    that they have old outdated equipment?
    TKS for now

  37. #45 questions! We can blame Zamtel for outgoing traffic! ie out of Zambia calls but not the following;
    1. Incoming calls – because we have multiple carriers of traffic into Zambia there can not be a direct blame on zamtel. Try calling ZAIN and you fail, 80% chance is that if you try a Zamtel landline you will get through from outside.
    2. International sms – as far as am concerned all service providers, mobile, ISP and zamtel (whose license we cant define yet) have direct data services internationally and sms services hosted international companies like Sybase etc. ZAIN and MTN have VSAT’s specifically for GPRS gateway and sms gateway so how does that fall on Zamtel

  38. vodacom and mtn are battling with SA regulates to get a chunk of the gateway we need to move ahead as a country the world is now faced with the challenges of the digital divide why should we always as Africans lag behind.

  39. Ba Serial Husband ba Pule, you misunderstood my arguments in the other post. However, needless to say we have serious issues in telecom sector in Zambia. Zamtel has acting MD for months and they have been digging (literally digging) trenches for a nationwide fiber project. ZESCO is also installing fiber and one wonders why these parastals cant share infrastructure and use Zesco powerlines to carry fiber.
    CAZ also has had an acting MD for months. Interviews have been done twice and Minister rejected candidates in first round and she is seriously considering a “good” candidate after second round of interviews.
    So where can we go with such a circus.

  40. So it is unlikely that both zamtel and CAZ will have CEO’s before election and should we have a new minister after elections. The search will start again. What we need is commercialization of Zamtel and professionalization (if there is such a word in Zedlish) of CAZ

  41. coming to Pule’s question of who can run the gateway besides Zamtel and goverment! Sell off part of the gateway to a SEP (without an interest in existing network). Companies like VSNL, Huawei, ZTE, Harris Stratex, Ericsson or even BT with experience in running gateways can be courted. List part of it on Luse and let it run commercially.
    After a while invite bids for TWO additional gateway licenses! Again existing operators should not apply. therefore ZAIN and MTN will never own the gateway directly. THAT IS ALSO GOOD FOR RISK MANAGEMENT

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  43. # 52. Child of the Soil… spare us from your Afro Fusion site. You are now becoming a menace man. Stay out of my face for Pete’s sake!

  44. Wow…it would seem i achieved my purpose in such a short space of time,

    the fact that you took your time to read and respond to my each and every post, is great feed back for me

    for that i can only be thankful,

    i shall now redouble my efforts

    stay blessed

  45. Bashimweshimwe muletontokanyako in detail panono. Ninshi teti uyo wine uulefwaya gateway apangila iyakwe? Mulefwaya mulelyobwali na Adamson Mushala? Bakalamicindisha sinjonjo bamwisa ngamuleangala. Tusheni

  46. Really, calling, smsing chimozi mozi…one cant sms to any foreign country mwe bantu….yiliko bad, then ba CAZ nabo, no teeth to bite…bwafya…can Dora Siliya please do something, this is really becoming stoneage mwe….

  47. If GRZ opens up the international gateway to the mobile companies – may the last person please turn off the lights at Zamtel. Its their only source of income to keep them going. Zain already expressed that they could make the cost of the call a fraction of what we are currently paying (believe an Arab if you may) and of better quality. smses and call are currently impossible to make from Zambia to the rest of the world.

    will there be changes…nada!!!

  48. ZAMTEL just installed a state of the art Ericsson soft switch and unless you are a telecoms expert, the story of outdated equipment requires a fact check. For those looking for the real facts about telecoms infrastructure and ZAMTEL visit the CIA fact book and get an education.

    ZAMTEL needs a strategic investor not only for finances but also for technical expertise. ZAMTEL is a local company competing with multinationals and needs all the help it can get.

    Most of the problems at ZAMTEL and ZESCO come from the Chiluba in which they politicized the entire company and siphoned funds. ZAMTEL has only made significant investments in infrastructure in the last 3 years.

  49. Zambian regulations are a joke! VOIP is illegal but the useless CAZ has no way of monitoring those having fun with VOIP. I use it everyday, come and get me if you cain. Don’t waste your time tracking the data packets of this posting because am using one of the public proxies!

  50. I think it is OK for ZAMTEL to handle the international gateway. we cannot compromise on security. but the problem i have is lack of forsight on the part of ZAMTEL management. These guys are still backward in technology and they think they can survive in this age and time. technology is evolving every minute and ZAMTEL should employ people to research on such issues and keep up to date with the new developments. the govt should also release the controlling power on ZAMTEL so that they operate as a separate organisation with a vision for change. ZAMTEL makes money and has the capacity to efficiently provide the services. BUT govt and so called TENDER BOARD??!!

  51. Ba No way mulimbushi sana, do you know how hard it is to get through to Zambia? GRZ is a hindrance to development in the telecom sector. They are blinded by the $18M instead of looking at how many people will be hired and yes theu can make more than $18M. thats why we dont need expired politicians like Sata no mukote munankwe RB.

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  53. ZAMTEL COULD HAVE PROBLEMS BUT THE GATEWAY IS THE ISSUE OF ZAMBIANS. THEN, WB HAS A SAY BUT THEY SHUD NOT FORCE IT ON US. THEY TALKED OF PRIVATISATION NOW THEY ARE IN FINANCIAL CRISIS. LET THEM GO UKO. SITIBAFUNA. LET THEM BE QUITE. EVERY COMPANY HAS PROBLEMS EVEN ZAIN NETWORK IS PATHETIC, WHAT GUARANTEE DO THEY HAVE THAT GATEWAY HAS ANYTHING TO DO WITH ZAIN OR MTN PROBLEM. LET THEM SELL TELKOM GATEWAY AND KUWAIT GATEWAY AND LET THEM COME BACK TO US AND ADVICE US HOW THEY SOLD THEIR’S

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