Wednesday, December 06, 2006

In spite of increase Telecom business, Telecom Ministry announces a planned revenue loss for 2007

Wednesday, December 6, 2006
$7 Million Revenue Drop Expected at Telecom Ministry

By Kay Kimsong
THE CAMBODIA DAILY


The 2007 draft budget currently under debate at the National Assembly predicts that revenue at the Ministry of Posts and Telecommunications will drop next year by some $7 million to a total of around $22.5 million, a revelation that has prompted criticism and concern.

Government officials said Tuesday that transfer of the 023 fixed land line business from the Ministry of Telecommunications to a state-owned enterprise, Telecom Cambodia, is one factor in the loss of revenue to the government. Also singled out was the proliferation of voice-over-Internet calling, which is depriving the government of revenue previously garnered from its 001 international telephone gateway.

Koy Pum, cabinet chief at the MPTC, said that since Telecom Cambodia was created in January, revenue from fixed phone lines has decreased.

"Before 100 percent of the income of TC went to the ministry, now TC revenue belongs to the public enterprise itself," Koy Pum said, adding he did not know exactly how much revenue had been lost in the restructuring to a state-owned enterprise.

Tep Buntha, director of finance at MPTC, declined comment.

MPTC Inspection Department Director Chiem Sangva said the loss of revenue in the 001 international gateway is tied to VOIP use in Internet cafes and garment factories.

"We are facing a huge loss," he said. "We can’t even fine and sanction the thief if we catch them," he added.

Chiem Sangva said that in 2003, Supreme Court Director Dith Monty handed down a decision which said the MPTC cannot punish Internet cafes for offering VOIP since there is no telecommunications law yet passed in the National Assembly banning the technology.

The government has recently licensed Thai-owned Camshin to operate an 005 VOIP-based gateway accessible from mobile phones. The CPP-aligned AZ company also operates a 008 VOIP gateway offering discounted calling tariffs. These rates do not match those available over the Internet at cafes or on home computers using programs like Skype.

Chiem Sangva said that in past years, the MPTC could collect up to $5,000 from each of Cambodia's approximately 300 garment factories—a total of about $15 million a year.

"Now we can't because Chinese investors installed systems for overseas calls in their factories," Chiem Sangva said.

Garment Manufacturers Association of Cambodia Chairman Van Sou Ieng said that he was unaware of what types of communication systems are being used in the hundreds of garment factories here.

Lam Pou An, a Funcincpec lawmaker and former MPTC secretary of state, said that financial mismanagement may be one reason for the loss of revenue.

"I don’t agree that revenue from post and telecom should be declining because today there are more phone operators and the number of subscribers is increased," he said.

Finance Minister Keat Chhon said that some ministries have not paid their 023 phone bills to the MPTC. Finance Ministry Secretary of State Ouk Rabun told the Assembly that ministries owe the government between $12 million and $20 million per year in telephone, electricity and water supply bills.

(Additional reporting by Erik Wasson)

1 comment:

Anonymous said...

I told you! This is what happen when the Vietcong military ISP doing business in Cambodia! ahahah!