Zambia may open up international gateways

Zambian telecommunication regulations do not prohibit interested mobile service providers from operating international gateways that compete with the government-run Zambia Telecommunication, according to a commission promoting consumer interests in the African nation.

Mobile service operators in Zambia are allowed by the country's telecom laws to directly interconnect their mobile networks with international networks in order to promote competition that would lower the cost of communications, said Zambia Competition Commission (ZCC) acting Executive Director Thula Kaira. ZCC supports consumer interests in Zambia by promoting competition among service providers.

The restriction of the operation of the international gateway to Zamtel has not benefited Zambians and was illegal, Kaira said. However, US$12 million licensing fees and protection of Zamtel from competition appear to be the remaining issues, Kaira said.

The international gateways for Zambia have remained closed since liberalization policies were introduced by the Zambian government almost 20 years ago. But mobile phone service providers including Celtel and Mobile Telecommunication are pushing the government to open up the gateways so they can buy licenses to operate their own international gateways and bring competition to the telecom sector.

Zambian President Levy Mwanawasa insists that giving international gateways to private operators would compromise the country's security. The incumbent operator, Zamtel, would lose out if private operators are given their own international gateways, Mwanawasa contends.

Kaira said, however, that although state security is of paramount importance and should not be compromised in any way, it is possible to find balance between national security and private investment needs in the telecom sector.

"As the situation stands today, there is no law or regulation prohibiting interested private operators from operating a competing international gateway. The fee appears to be the contention," Kaira said in an interview.

There is no need for the government to overly protect Zamtel, an unprofitable monopoly not at all inspired to innovate, adapt and work in tandem with global high-technology developments in the telecom sector.

Pan-African mobile telecommunication company Celtel Zambia Managing Director David Venn petitioned the Zambian parliament to break the deadlock over international gateway license fees that has been dragging on for more than two years. Parliament has yet to compile a report that will be submitted to both government and mobile service providers in the country to guide them on the way forward. The government is under increasing pressure from various companies around the country to reduce the fees.

Before 2002, the Zambian government had pegged the international gateway fees at $18 million but that was later reduced to $12 million.

Zamtel provides fixed and mobile-phone services, has exclusive rights to the Mwembeshi Earth Station and collects revenue from private operators using the satellite's facilities, including international gateways.