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September 22, 2006

Five Men Arrested for Selling VoIP Without a License

By Susan J. Campbell, TMCnet Contributing Editor


The technology offering of voice over Internet Protocol, or VoIP, promises better quality communications connections at a fraction of the cost of traditional telephone communications. For those already running an Internet connection, deploying VoIP in their environment is many times considered a no-brainer. But, what happens when VoIP is provided without a license? A conviction and possible jail time.

Five men have been arrested by Namibian Police for operating illegal VoIP services at Walvis Bay. Shen Yuefei and Qipin Huange, co-owners of the James and Rose shop, and Tsan-Jung Wu and Yaming /Xu of the Ganen Lushen Shop appeared in the Walvis Bay Magistrate Court on Monday along with Xinlan /Gan of the China Shop. All retail outlets mentioned are situated in the harbour town’s Sam Nujoma Drive.

The five were arrested on Saturday by Telecom Namibia’s Fraud Monitoring Unit, assisted by the Namibian Police, for violations of the Postal and Telecommunication Act of 1992. The Act prohibits the provision of any telecommunications service by any person without a license. The men were caught trying to sell VoIP services to a member of the public.

Oiva Angula, acting head of public relations at Telecom, acknowledged that they seized the equipment used to bypass Telecom Nambia’s switching facilities in order to offer cheap international calls via an Internet connection. Among the equipment were IPstars, devices that enable Internet phone calls without using a computer.

A Public Relations spokesperson for Telecom Namibia said that, “It is evident for these illegal operations, the provision of VoIP to the public is an opportunity for ill-gotten income rather than an opportunity for better service.”

Magistrate Petrus Nangula set bail at N$3 000 each, which was then paid by the five men. The case against the men was postponed for further investigation, but they must return to court on October 30.

Such an incident raises the eyebrows of those watching and reading from the sidelines wondering if the telecoms really are looking out for the protection of the public or their dwindling profits. Sure, the men did violate a national Act and thus, broke the law. But, for the monitoring to come from the national telecom, it almost sounds like tattling.

And, how will the Namibian public view this move? Is this an act of justice or is this an act of ensuring the public does not receive services outside of what the national telecom can offer – for a price? The legal issue is pretty cut and dry if these men indeed were operating without a license. The public, however, should make note of which interests are really being protected in such a case – theirs or the telecom?

What’s the number one VoIP conference in terms of attendance? What’s the leading VoIP expo for exhibitors in terms of lead generation? And which VoIP industry event will feature special attractions for service providers, resellers, and the enterprise and SMB market as well as an overview on the Future of IP Telephony? Answer: INTERNET TELEPHONY Conference & Expo, WEST, which runs October 10-13, 2006. See you in San Diego!

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Susan J. Campbell is a contributing editor for TMC and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.