CUASA NEWSLETTER
December, 2003
New technologies make telecomms restrictions redundant?
 

Voice over the Internet and connecting wirelessly to your neighbour's house may be illegal, but a raft of new technologies break legislative and regulatory barriers anyway

New wireless networking and Voice over IP (VoIP) technologies are seriously challenging restrictive South African communications legislation, possibly calling whole sections of the Telecommunications Act and associated regulations into question, says spokesman for the Communications Users Association of South Africa, Ray Webber.

"According to South African telecommunications legislation and regulation, only a few licensed providers such as Telkom are permitted to run VoIP over public networks. But that hasn't stopped thousands of South Africans from using instant messaging applications like MSN Messenger, InternetPhone (as far back as 1996), and more recently, VoIP application Skype," says Webber.

The MSN Messenger application is more commonly used in its primary role as an instant messaging utility to communicate via text to anyone, anywhere in the world. However, MSN Messenger includes the ability to communicate via microphone, speakers and even a webcam. Those who have tested the service often find that while MSN may work well as an instant text messenger, having a conversation with a friend in their London office over the internet could often be described as "shaky". This could largely be due to continuously increasing internet usage and South Africa's questionable international bandwidth.

With well over three million downloads world-wide, peer to peer phone service Skype may well represent a serious threat to conventional telcos. The service is offered by the same developers who brought instant headaches to software and music publishers with the KazaA peer to peer application.

According to the site www.skype.com, the technology directly connects users - not to share files this time - but to talk and chat with friends. The developers claim that their free download is extremely advanced, but super simple to use and that users will be "making free phone calls to . . . friends in no time".

The developers further claim that they offer unlimited worldwide phone calls to other Skype users and that the service offers "superior sound quality - better than your regular phone". Testing such claims would involve downloading the application and inviting another user to do the same - communicating directly over IP (more or less for free). Such an action would, of course, be illegal in South Africa.
"Regardless, one can statistically assume that thousands of South Africans are using such services anyway, even though there appear to be various data security and privacy risks associated with such services. The download is freely available online and we would all be naïve to believe that South Africans are not utilising such services," says Webber.

In an article published in AustralianIT, Skype's founders, Niklas Zennstrom and Janus Friis are reported as saying that their service will "challenge the outdated business models and rip-off tactics of legacy telcos". The article further quotes a future technologies expert, Bill Koff, as saying that Skype may "completely disrupt" the traditional telephony market and that such "disruptive technologies . . . pose an enormous threat to telcos".

Peer to peer technologies such as KaZaA and Napster ran into legal problems because users were exchanging material which is copyright protected. The same cannot be said for two people having a telephone conversation using IP over the Internet.

"With such rapid growth in the development and use of VoIP technologies, we question the relevance of restrictive South African legislation," says Webber. "The use of applications such as Skype are almost impossible to police. We even suspect that Telkom's own internet service (Telkom Internet) is being used to carry such services. Does this render our legislation defunct?" he questions.

Another technology which could be graying the hairs of both legislators and Telkom executives is the proliferation of wireless networking solutions. In terms of the Telecommunications Act, only specified providers are legally entitled to run connectivity solutions over public roads or between buildings which are owned by two separate parties. So installing a wireless network and inviting your neighbour to a networked bout of Warcraft III is deemed illegal. Or worse - utilising the same network with VoiP to invite him for a spot of tea and koeksusters. Of course, the ultimate crime would be to install an ADSL solution provided by Telkom and wirelessly network your entire street to the net.

"On one hand, some South African legislation and regulation is unequivocal with regard to these matters," says Webber. "On the other, this kind of legislation is surely past its sell-by date," he says.
"The real difficulty is in identifying just how far such legislation should be relaxed. At what point does a wireless network become a widespread broadcasting solution akin to an ISP, radio or television station? Regardless, we expect to see serious legislative challenges on the horizon. In the meantime, many South Africans are likely to ignore this kind of legislation anyway - taking the risks as they see fit," he says.


Telkom's puzzling pricing
Telkom's proposed average tariff increase of 2.7% for 2004 may initially look reasonable - but puzzling claims and possible omissions from the monopoly's proposed tariff adjustment could cost business and consumers millions next year, according to the Communications Users Association of South Africa (CUASA).

Cellular LCR – What it really means to users
The widely publicised recent legal victory by Cellular Least Cost Routing (LCR) suppliers means that companies can now officially use ”Premicell” type devices to carry their fixed to mobile calls.

New findings, judgements and announcements
New proceedings
Pending proceedings - submissions due
Pending Proceedings - outcome awaited
 
Disclaimer and copyright notice
Although every attempt is made to ensure that the information contained in newsletter is accurate, CUASA disclaims all liability for the accuracy and comprehensiveness of the information provided. It accepts no responsibility for any loss occasioned as a direct or indirect result of the use of or reliance on the information contained herein, which information in no way constitutes legal advice.

Some of the information provided in this newsletter is provided courtesy of Lisa Thornton Inc. The content of this newsletter is subject to copyright protection. Reproduction or distribution of the content, or any part of it, other than for educational purposes or personal use, is prohibited without prior written consent from CUASA and/or Lisa Thornton Inc.

Copyright © CUASA 2003. All rights reserved.



Unsubscribe to this newsletter