Companies are always looking for ways to make their businesses more efficient and productive, while at the same time cutting costs where possible. One technology that has made this possible is Voice over IP (VoIP). This allows phone calls over the Internet and it eliminates the need for having separate lines for your Internet connection and dedicated voice transfer lines.
This is definitely a cost saver that allows smaller companies and startups to keep in contact with remote staff, partners and clients. So why is it that earlier this month Egypt blocked all VoIP applications, such as Skype (News - Alert), WhatsApp and Viber?
Social media was all a twitter with news that on October 5, 2015, users were receiving messages much like the message that Twitter (News - Alert) user Amr Khalifa received saying that Skype had been blocked until further notice. Anyone using the other VoIP apps received similar messages with no explanation as to why.
The National Telecommunication Regulatory Authority (NTRA) issued a statement to state-owned news agency MENA saying that the information being bantered about on social media sites were just rumors. The rumors refer to the fact that the reason was nothing more than financial loss.
It seems that the telecommunication companies were either losing money or worried that they would lose their revenue as people and companies shift from traditional calling methods to the more scalable, flexible and affordable VoIP applications.
While companies in Egypt may not be using Skype, WhatsApp, or any other VoIP app on a daily basis, it has become a critical way for them to stay in touch with their partners and clients normally located abroad. Con O'Donnell, co-founder and business development lead of the annual RiseUp event, said cutting VoIP applications “will limit entrepreneurs’ ability to communicate with customers and partners.”
Unlike large enterprises, startups have limited funds and resources with which to make a name for their company in the business world. VoIP is a very effective method for them to compete, at least on some level, with the larger firms, as well as give them the ability to hold video conference calls.
One such company that will definitely be affected in a negative way is UserTalk. In describing how the startup would be affected, business development manager Ramy El-Husseini said “We are an online call center which provides communications services through VoIP applications. After this rumor started many of our clients, such as Buffalo Burger and Shawerma Elreem, were concerned about how we will go about our business with them.”
There is the feeling that in Egypt, as pretty much anywhere else in the world, the blocking of VoIP services is only a minor setback. O’Donnell suggests that as with anything else, a workaround will be devised and used. The question to ask is, how will this affect VoIP users in the meantime?
To date, there has been no response from the Ministry of Communication and Information Technology as to what course of action will be taken. The ban is still in effect and it has become a major concern for business of all sizes in Egypt.