Zambia: crack down on illegal connections
Zambia: crack down on illegal connections
The Zambia Information and Communication Technology Authority (ZICTA) has forced power utility company Zesco to disconnect unlicensed international data transit operators for reportedly using the utility's infrastructure to offer digital communication services to local unregistered ISPs.
The Zambia Electricity Supply Corporation (Zesco) runs a subsidiary company called FibreCom that provides broadband internet services across the country and is connected to international undersea cables through Namibia, Botswana and Tanzania.
According to ZICTA, international transit operators leveraged connectivity with this infrastructure to provide internet services to unregistered ISPs.
Businesses across the country faced turmoil with slow internet speeds hampering some payment transactions and affecting email communication following the ZICTA directive.
According to a statement issued by ZICTA's public relations officer Hansford Chaaba, the regulator has already issued fines against Zesco and the five International Transit Operators.
"It is important to note that companies engaging in such conducts deprive (the) government of the much-needed revenue as they do not pay tax since they are not registered entities in Zambia," said the statement.
Adding, "Tax avoidance is illegal, and we therefore, urge companies operating in the ICT sector to legalise and normalise their operations and follow laid down procedures as stipulated by law governing the sector".
Paratus Telecom Zambia, one of Zambia's largest ISPs with points of presence in Botswana, Namibia and South Africa, has welcomed the crackdown.
Country manager Marius Van Vuuren said, "Unregulated International internet service providers are operating below the radar, not paying taxes and putting local providers at the disadvantage."
"We welcome ZICTA's bold move to stop this practice and urge organisations that they only entrust internet connections that are so vital to their businesses to licensed and regulated providers," he added.
He estimated that the outage resulted in tens of millions of Zambian Kwacha worth of lost business to firms who were unable to make reliable connections.