Telecoms Sector Records Revolution in IT

Zambian telecommunication sector has recorded a revolution in the last decade with the full liberalisation of the sector and introduction of various innovations in the Information Communication Research.

He said in his paper 'understanding the dynamics of competition in telecommunications services in Zambia, that the growth was facilitated by the realisation that the state owned entity, Zambia Telecommunications Company Limited, could not fully cater for changing global scenario.

Zamtel, which owned all the backbone infrastructure and essential facilities, was not able to keep Zambia abreast with the high-tech developments that had at that time already taken place in the global telecommunications market.

The auspices of the World Bank

Following structural adjustment reforms pursuant to this agreement the auspices of the World Bank and the International Monetary Fund, the Government enacted the Telecommunications Act in 1994.

Within the year the Competition and Fair Trading Act was legislated leading to the constitution of the at the time Communications Authority of Zambia and the ZCC.

The period two major telecommunication players

Over the period two major telecommunication players, the precursors of MTN and Airtel Zambia respectively entered the sector following the opening up of the industry thereby introducting the much-needed competition.

On the other hand the last few years has recorded unique expansion and installation of the optic fibre networks, the long awaited liberalisation of the international gateway and the expansion of internet as so then as mobile telephone services.

The mobile telephone service has grown

The mobile telephone service has grown by more than 300 per cent from 949,558 to more than 4,000, 000 subscribers while the period.

The internet service grew by over 65 per cent from 10,882 to more than 18,000 subscribers which translated into a marginal increase in internet subscriber penetration from 0.1 to 0.2 per 100 people.

The country's telecommunications market is dominated

According to Paul Budde Communication report of June 2010 the country's telecommunications market is dominated by Airtel which by 2009 had a market share of more than 70 per cent during the runner-up, MTN recorded the fastest subscriber growth.

The report on Zambia - telecoms, mobile, broadband and forecasts states that the third competitor in the mobile market, Cell Z a subsidiary of Zamtel was performing poorly so was its sister wing for the fixed-line sector, in spite of monopoly rights including the international gateway.

The internet

That limited growth in the internet and broadband sector resulted in high prices in Zambia with some of the highest for international bandwidth on the continent.

The monopoly on the international gateway and restrictions on VoIP (Voice over Internet Protocol) Internet telephony have fallen in accordance with the new ICT Act, which has made international calls and borderless international roaming much more attractive.

Bid to open up the sector to private investments

In a bid to open up the sector to private investments and even the playing field the Government last year sold its majority stake in Zamtel to LAP Green Network of Libya.

One of Zamtel's key assets is the national fibre network in other words currently being rolled out, including connections to neighbouring countries which will provide transit links to international submarine fibre optic cables off the African east and west coasts.

Mr Kaira said lack of private sector entry into the field of business arguably led to high international call tariffs as so then as, notably, lack of investment in contemporary and more efficient high-tech in the international gateway system.

The systems

This led to higher costs of managing the systems and relatively higher tariffs. He said it appears clear from what is obtaining in the mobile telephony and internet product markets that allowance of private entry has spurred competition through innovative technological systems as so then as higher consumer welfare gains in terms service delivery and pricing over the years.