Smart technology can help regulate the telecommunications sector, eradicate the possibility of fraud and bolster revenue, Global Voice Group (GVG) says.

The group implemented its Telecom Traffic Monitoring System (TTMS) project in Tanzania, with much success seen in the Tanzania Communications Regulatory Authority’s (TCRA’s) collection of over TSh93-billion in revenue over the five years from 2013 to 2018.

GVG officially transferred ownership of the TTMS and infrastructure to TCRA in January, with the platform continuing to strengthen the role of the authority and government as regulators, policymakers and promoters of information and communication technology growth and development in the country.

“The mismanagement of funds in the telecommunications industry had got out of control and, with the help of the TTMS project, Tanzania managed to eradicate almost all instances of fraud in external telecommunications, bringing the figure down from over 65% to just 10%,” says Tanzania President John Magufuli.

In Tanzania, where an estimated 42-million people use cellphones, 23-million of which are smartphones, the telecommunications sector should form the backbone of a dynamic and inclusive digital economy.

However, an alarmingly high prevalence of fraud has resulted in the Tanzanian telecommunications sector haemorrhaging billions of dollars in the past.

“It is no secret that we have lost a lot of money as a result of fraud and embezzlement in this sector,” says Magufuli.

The loss of revenue had been exacerbated by the progressive reduction in the level of funding offered to African governments by institutions such as the International Monetary Fund and the World Bank over the past few years.

“[Consquently], finding ways to clamp down on the mismanagement of funds in order to reach financial independence from these global regulatory bodies has been prioritised in recent years,” he adds.

The TTMS regulates the exact number of telecommunications users and debtors, enables authorities to regulate, monitor and track regulatory compliance, security, reliability and the quality of fast-growing services, including mobile money transactions, and allows for economic inclusivity of unbanked citizens.

The system has helped government to understand and control many electronic financial transactions, like M-pesa and related transactions.

TCRA director-general James Kilaba explains that this has already made a significant impact on tracking mobile money transactions.

“We have seen an increase in mobile money transactions from TSh8.5-trillion a month in 2007 to TSh11.60-trillion in 2017.

“Overall, the TTMS provides enhanced oversight capacities that benefit Tanzania and all Tanzanians by enabling the TCRA and government to see, in real time, what is really going on in the telecommunications sector in terms of quality, security, performance and compliance, thus significantly improving the governance of a sector that plays a major role in the socioeconomic development of the country,” says GVG CEO James Claude.

The traffic measurement and antifraud component makes networks more secure for Tanzanian consumers by effectively tracking and eliminating fraudulent traffic.

“This also improves the quality of . . . international calls, since calls going through illegal routes are of poor quality, owing to the Voice-over-Internet Protocol compression methods used by fraudsters,” he says.

“I would like to inform everybody that since this TTMS was installed, we now know the exact number of telecommunications users, debtors, telecommunications fraudsters, and all the information that we did not know before,” Magufuli says.

“Without this system, a large portion of this revenue would have gone into private pockets instead of being used by government for the greater good of the country.”

He adds that, based on the “impressive level of satisfaction”, it is possible that the platform can be duplicated in other countries to unlock economic prosperity for all.