Zambia to cut international telecom gateway fees

Zambian President Rupiah Banda has announced the country will cut its international gateway license fees in order to bring them down to regional averages, but the union of communication workers said the move will further weaken the financial position of the incumbent operator Zamtel.

Private mobile telecom service providers including Mobile Telecommunication Network (MTN) have been pushing the Zambian government to reduce the cost of international gateway license fees, claiming that it would lower the high cost of communications in the country.

Zambia's international gateway fee of US$12 million is currently the highest in the eastern and southern Africa region and has been cited as a barrier to entry in the telecom sector. International gateway fees are $214,000 in Kenya and $50,000 in Uganda.

Banda said last week that the Zambian government is committed to the development of the telecom sector through the reduction of the international gateway license fees. Banda has not said how much the gateway license will cost, as the government is still putting the new regulatory framework into place.

"The government will improve regulatory framework and promote competition in the sector as it is one of the potential sector for job creation," Banda said.

However, National Union of Communication Workers General Secretary Clement Kasonde said the government needs to move on the gateway fees because a reduction would deprive Zamtel of financial resources. Zamtel is a government-run communications utility company providing Internet, mobile and fixed services across the country, and has exclusive rights to Mwembeshi Earth Station. It collects revenue from private service operators using the company's satellite facilities.

The gateway fee is paid to Zamtel through the Zambian government by service providers.