Foreigners responsible for expensive telecom services
The Zambia Information and Communications Technology Authority (ZICTA) has stated that telecom costs in the country continue to be the highest in the region and this was partly because most of the players in the industry were foreigners.
“ZICTA acknowledges that the cost of using ICT services in the country has continued to be high and needs to be regulated. The tariffs being implemented are still unreasonable”, told Richard Mwanza, acting executive director for ZITCA, to the parliamentary committee on communications, transport, works and supply.
He proposed that a cost service survey is needed in order to address the issue, which would cost around US $1 million.
He also specified that the dominance of foreign players in Zambia’s telecom sector, due to sound financial support from their countries of origin, is affecting the telecoms industry, resulting in high telecom costs and less prospects for local players.
Mwanza added that local telecom and Internet providers lack financial support from the Government and should be given incentives to support them and benefit consumers.
Member of Zambian parliament, Ng’andu Magande, who chaired the meeting, confirmed that the high number of foreign telecom companies in the country was an issue that must be addressed.
“The problem is that in this area, we have too many foreigners and there is a likelihood that money is not staying in the country. There is need to monitor just how much of the money being made is circulating within our economy,” he said, adding that local players need strong capital to compete with foreigners.
Unfortunately, not many Zambian companies are interested in investing in ICT sector, even being given incentives, he concluded.
Loading ...
Great analusis kaumb. why should Zambia have higher charges than other countries. It is the cost of doing business and not the ownerss of the firms. I would have expected someone sharp like magande to challenge Mwanza
total dullness if you ask me. these comedians have forgotten that we were exploited for so long by our state owned monopoly Zamtel which we are now selling to foreigners. instead of looking at cost structures and identifying the problem we just go out and blame foreigners. i wonder who they blame for high fuel prices, high electricity, high interest rates, high cement prices, etc. communication costs have actually been downward due to these same firms, they even provide much needed innovation, i’m browsing on my phone right now. lets be serious when trying to solve problems and not hide behind foreigners
A typically elementary and silly comment. Blaming foreigners will not solve our issues. The reason for the high price level in Zambia is a structural one. It will not be solved by populism or common sense. It will require strong leadership and the current alternatives sadly do not provide this. Foreigners indeed……!!
It is not just telcoms cost which are higher that those in theneighbouring Countries, there is also the issue of fuel. zambia’s fuel is among the highest in africa. Not only that, Zambia is a top sugar producer, but Zambia Sugar Company sells the locally produced sugar cheaply in Rwanda, Burundi and Congo, but sells it expensive here in Zambia were it produced, what maths is that???
We have all these cost centres that do nothing for the consumers eg the ERB for energy, the same ZICTA for telecoms, the RATSA and NRTA for roads, and for all these, the Zambian consumer pays some commissions which endup making the consumed item expensive. Its strange that Magande can now say what he is saying because in one of the few analytical works by the PF in the runup to the 2006 elections, the where able to show that 60% of the fuel costs were due to these unecessary taxes and levies, Magande vehemently to the PF off saying they didnt know what they were talking about.
The PF were correct then, and Magande must ownup, apologise to the Zambias for having inflicted unnecessary costs on them and with a clear conciuos convince his party to do away with some of these high paying, self serving entities.
NOt eveident that it is because of foreugn players the cost of communication is so expensive in Zambia. Governement should look at the system itself how it is operating, compared to what is done in other countries in the region. MTN and Zain are not operating exclusively in Zambia, but in more than ten countries, how are they cheaper there than in Zambia? Competition is the key, let Vodacom come, let Kavindele bring another company, reduce the dependence of telecom operators from Zamtel. The same Zain Sim card can be used by a traveller in all the countries where Zain operates, except Zambia. I dont Zain decided not to let Zambia benefit of this interconnection: Zambia Government refused to be connected to this link,scared to lose substancial revenues from tax paid by Zain. Calling Zambia from DRC , using Zain , it will cost same like a local call, around 28 cents, but calling DRC from Zambia wil cost as high as dollars 1.60 per min. But calling Any of the other eleven countries neighboring DRC , is charged as local, same from those countries to DRC , except from Zambia????? Zain cant have same billing everywhere they operate, excpet Zambia. This means ti is not Zain’s problem, but the problem is the Zambian Government.
It true these aliens are making our lives difficult. That is why we need Sata to clean up the country
That is since by GRZ estimation, we can afford very expensive telecom services.
Thanks to GRZ for not getting the opinion of Zambia Information and Communications Technology Authority (ZICTA)on the sale of ZAMTEL.
sale zamtel to fred,not foreigners.
Kavindele wanted to bring the fouth tele company but people snabbed it. We could have atleast enjoyed more competiton . Happy with Mtn and Zamtel though. Zain NAAAAAAAAA