More liberalization in telecom sector |20 October 2005

The department said on Wednesday that it has issued the first Voice Over Internet Protocol (VOIP) licence to the cable television entertainment service provider Intelvision, bringing to three the number of internet service providers in that industry in Seychelles.

Consequently, Intelvision will, by means of its cable television network, be able to provide internet and telephone services, the department said, adding that the company has also been issued with an Internet Service Provider licence.

The department also noted that other applications for the VOIP license are also being considered.

“Now that there are more providers of telecommunications services in Seychelles, it is expected that prices will be even more competitive and that both consumers and businesses will enjoy more choices,” the department said. 

The VOIP technology, meaning the transmission of voice using the internet, can be used to provide a variety of market offerings which can be categorized into three groupings: a product (such as a software program run on a personal computer) with no ongoing provision of a service; corporate private networks, used for internal communication within large companies, for the sole use of that corporation; and publicly available VOIP services which are subjected to remuneration.

The department noted that with the partial or full liberalization of some or all of the sectors of the telecommunications industry of many countries, consumers and businesses not only enjoy more choices of service providers and a wide range of innovative services at competitive prices, but lower rates as well.

Noting that Seychelles, with a duopoly market structure until recently in providing telephone, mobile and internet access services, has made considerable progress in the liberalization of telecommunications, the department said however the telecommunications market indicators over the last few years are depicting slow growth in some services, hence the need to restructure the market by enhancing and strengthening competition, thus allowing market forces to drive rates lower.

The department explained that with the technological advancements, primarily with the development of new services which uses VOIP technology, it was imperative that the appropriate regulatory framework be put in place before further liberalization took place.

“Cognisant of the benefits, such as increased competition, stimulation of new and innovative services for the citizens and also the challenges, such as potentially lower levels of consumer protection, the Department of Information Technology and Communications decided to promulgate the Broadcasting and Telecommunication (VOIP services) Regulations 2005 and the Licences (Broadcasting and Telecommunication) (Amendment) Regulation, 2005,” the department said, noting that the new regulations are concerned with market offering which falls under the publicly available VOIP services in the third category.

“In doing so, the department has recognized that a balance needs to be struck between creating the right conditions for deployment of VOIP services and ensuring that consumers are properly informed and protected,” the department said.

Noting that traditional Public Switched Telephone Network (PSTN) voice services have readily been available to deliver certain features/facilities – such as public emergency call services, directory information and operator assisted services, publication of directory information in printed form, among others  – the department said that consumers have come to expect many of these features/facilities to be standard in voice services and with VOIP services these expectations will be no different.

“Consequently, in its assiduous efforts to strike the balance, provisions have been made for the regulation to allow for different flavours in publicly available VOIP services. This is in view of the fact that classification of these different flavours is unlikely to be stable, given the pace of technological; and market-driven changes.

Accordingly, the regulatory treatment depends on the nature of the service being offered and the regulations encapsulate this principle,” the department said.