VoIP Has changed the Telecoms landscape in South Africa

Friday, November 6, 2020

Although telecom is one of least competitive business service globally, VoIP is rising to be one of the most fiercely aggressive.


VoIP has certainly been replacing the telecoms landscape in South African in recent years. For a long time, the industry was held back by the country’s serving fixed line operate Telkom, which kept a strong grip on its monopoly due to deficiency of competition. Since it was government owned, the regulation was forever in its favour and operate was capable to keep prices top, to the disadvantage of the consumer and the country’s telecommunications industry as a whole.

On 1 February 2005, ICASA opened regulation, allowing a provider with a network license to inter-link with other carrier network and exchange voice traffic by using the internet as their medium to link subscribers, Mitchell Barber, WhichVoIP CEO, a site that lists various hosted and VoIP private branch exchange operators, permitting consumers one perfect place to match offerings and prices.

Reason for the rise

These days, there are over five hundred companies licensed and registered by ICASA that are followed to give substitute voice services to South Africans.”This does contain the various voice partners, affiliates, resellers, consultants and partners whom sometime trade under their own branding”

The reason for this rise, Barker says, is because providers are realising that there is a frantic need for cost-friendly substitute telecoms in South Africa. From their side, businesses and consumers are realising that VoIP offers them cost effective VoIP service for making both international and local phone calls.

Most expensive costs are internet

Just as the cost of software and PCs has been driven down due to huge international competition, millions of users and economies of scale, so has the market for VoIP software, hardware and services. The most costly part of owing a personal computer over 3 years is the internet costs. And the same is real for VoIP South Africa. By piggybacking VoIP on top of an existing online connection, full communications costs can be managed much better.

There are other benefits which may not be apparent at first. In any organisations, changes and moves of staff can play disaster with administrative costs. Just moving a worker from one branch to another, or even just to different desk can be costly and time wasting exercise with traditional telephony. With VoIP, by contrast, it is easy because the logic of who a system user is depends on the application, not where the person sits,” Barker concludes.

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