For a handful of dollars and some more control, the HAT is sacrificing the telecommunication sector

But this is merely an excuse, isn´t it? The imposed control is everything but a substantial boost for potential investors in Madagascar. The real issue is the VOiP, the voice transmission through the IP Protocole and its confusing rules in Madagascar. Should consumers or companies pay for it? In between, the sector has been developing with call centers and reduced costs for international communications.

The Telecom Operators´ Group (GOTICOM) recalled that any form of control is actually counterproductive for being a pledge for heavier costs, and emphasized that private groups are in need of data processing confidentiality. Any challenge to this confidentiality principal by a potential watchdog would scare call and data centers investments away.

The anti confidentiality decision and the appointment of a watchdog company did not take more than a couple of weeks without any bid for offers. According to GOTICOM, the concerned investor would be VOCAL PAD, a firm confined in a tax heaven, making its money from the VoIP trade. This firm is intending to collect 5 to 15 cents per minute online. Companies exploiting international channels would have to pay some 480 millions of ariary a year for their access to the controlled gateway.

“Investors are defending their interests, so does the State, the controlled gateway is inevitable” vociferated the HAT prime minister. The State is meant to collect 35 millions $US from the expected 100 millions high returns in 5 years from the gateway. The company appointed as a watchdog may count on substantial tax reductions, as its investments are running no risks since the state has to pay for all of its equipment if its contract is failing from being renewed.

Operating companies and Malagasy consumers will have to bear cost increases on data transfer in order to provide the “State” with 7 millions US$ more. The collecting process was de facto granted to a company led by Arabian CEOs, some of the ruling power´s favorite partners in this world with virtual borders. The HAT minister in charge of telecommunications is hereby driving his sector back to the middle ages, although the country has long been famed for having the world´s highest internet costs