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(c)
Postal Services
ZAMPOST is the major player in this category. However, a number of private
sector competitors have entered the market especially in the courier business. Due
to the introduction of technologies such as Internet on the market, the letter-based
system has registered a downward trend over time. However, given the potential
of E-Commerce in the country due to increased Internet use; there is great potential
for the postal system to contribute significantly to E-Commerce penetration in the
country. Therefore, re- engineering of the sub-sector is required to fit the new
business environment.
(d)
Broadcasting Services
Radio and TV form the key components of the sub-sector. The traditional approach
to broadcasting has changed significantly over the years. Satellite and Internet
technologies have created new opportunities and challenges for policy makers,
broadcasters and regulators. This requires a lot of ingenuity given the not-so-clear
separation of Radio/TV and Telecommunications services in the current
scenario where technology and market convergence are driving diverse
industries to merge. Currently, electronic content can be carried irrespective
of the technology whether it is radio/TV or telecommunications transmission
networks. Therefore, this situation is changing the legal and regulatory framework
required to administer the sub-sector.
Consumers
The consumers of products and services form an important component of the sector. These
include end users, dealers in consumer electronics, consumer associations and corporate
customers.
A number of factors have been identified as inhibiting the growth of the local ICT industry.
Among the key factors affecting the growth of a vibrant private sector-driven ICT sector
are:
(a)
Many industry players consider the current investment regime (incentives and
taxes) to be unattractive for recapitalisation and new investments in
telecommunications, broadcasting and Information Technology subs-sectors;
(b)
Lack of access to affordable capital among Zambian entrepreneurs in the
ICT industry; especially start-up capital for SMEs in the sector;
(c)
High import tariffs and taxes imposed on ICT products and services are
regarded as having a negative impact on the expansion of the ICT sector, this is
despite the reduction of duty on computers from 15 to 5% in the 2004 budget;
(d)
Inadequate supporting infrastructure development such as roads,
telecommunications, and electric power to increase the demand for ICT services;
(e)
Poor coordination of the ICT sector resulting in the inability to attract adequate
domestic and foreign direct investment;
(f)
Lack of a coordinated industry voice on business matters affecting the sector; and
(g)
Limited regulatory powers amidst convergence of services.
Information
Technology is not regulated despite forming a key component of the ICT sector.
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