General News of Wednesday, 2 August 2000

Source: ITWeb (Johannesburg)

Ghana ISPs closed down

Johannesburg - Ghana's telecoms regulator, the National Communications Authority, has shut down Internet service provider (ISP) InterCom Data Network (IDN) for its operation of voice over IP (VOIP). It is the third ISP to be closed down for deploying the technology.

The closure of IDN has highlighted the VOIP debate in Ghana.

Under the laws governing the operation of voice service in Ghana, the two fixed telephony operators, Ghana Telecom and Westel, have exclusivity over the country's international voice communication gateway. This means that all incoming and outgoing international calls must be routed through their networks.

The government claims the exclusivity is in place to cushion the two operators from the initial huge investments they made.

The exclusivity enjoyed by the two fixed operators ends in 2002. Despite mounting pressure from data communication operators, it remains to be seen whether the government will review the law.

Critics say VOIP technology is widely available today at a much cheaper rate and in the end it is Ghanaians who are being given a bad deal.

IDN is the largest ISP yet to be shut down for VOIP operation. Two other smaller ISPs were closed down in June and their equipment confiscated.

IDN, which started commercial operation in the last quarter of last year, commands a considerable number of Internet subscribers in the Accra-Tema metropolis. Its closure sent a wave of annoyance among many subscribers as companies and cybercafes on the IDN network were left without Internet connection.

In the week following the closure, the case was sent to the country's Serious Fraud Office and legal proceedings are expected to begin soon.

In a statement to the press, Ghana's minister of communications stated that the country has lost $9 million since the beginning of the year as a result of VOIP operation by ISPs.