News update Telecoms and ICT in Africa – Issue No 122 on 9 August 2002

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AFRICA’S GREY MARKET - TECHNOLOGY AND MARKETS GO ROUND REGULATION

9 August 2002

The grey market is where Africa’s comparatively recent regulatory regime meets the realities of the market and new technologies. There is a grey market in every African country and it will grow larger unless the regulators get to grips with why it occurs. It makes the international accounting rate system largely meaningless. Some grey market services operate in the margins of legality, whilst others are currently illegal. The smarter incumbent telcos are beginning to understand how to fight back but the regulators seem largely clueless. Tim Parsonson of Storm describes how the grey market operates in South Africa and how…