Portugal Telecom's merger with Brazil's Oi to deliver benefits to MTC
This annual report provides a comprehensive overview of trends and developments in Namibia's telecommunications market.
Subjects covered include:
Market and industry overviews;
Market estimates to end-2014;
The impact of the global economic crisis;
Government policies affecting the telecoms industry;
Market liberalisation and regulatory issues;
Telecoms operators privatisation, IPOs, acquisitions, new licences;
Major players (fixed, mobile and broadband);
Mobile voice and data markets;
Internet and broadband development;
Convergence (voice/data, fixed/wireless/mobile);
3G and 4G (LTE) mobile broadband services and pricing;
Average revenue per user (ARPU).
Namibia was one of the last countries in Africa to introduce competition in the mobile communications sector when a second network finally launched in 2007. Despite this, the country has achieved a market penetration rate well above the regional average. However, the average revenue per user has more than halved since then. Both GSM operators MTC (managed by Portugal Telecom) and TN Mobile (formerly Cell One and Leo, now owned by Telecom Namibia) have entered the internet and broadband market with 3G mobile broadband services in a bid to create new revenue streams. MTC introduced fourth generation (4G) technology in May 2012 when it launched an LTE network in the capital, Windhoek. In addition, Telecom Namibia (TN) offers 3G mobile broadband services using EV-DO technology, and in 2013 contracted ZTE to roll out a network to provide converged fixed and mobile services, including LTE.
Fixed-line services are still a monopoly of TN, but as a member of the WTO the government plans to open the telecom sector to full competition. TN entered the lucrative mobile market as the third player with a CDMA network but was put on hold by the industry regulator, the Namibian Communications Commission, until a new communications law was enacted which, among other issues, addresses fixed-mobile convergence. Since then, however, the absence of effective regulation during the transition to a new regulatory authority, the Communications Regulatory Authority of Namibia, has led to further delays in market liberalisation.
Despite being reasonably competitive with six ISPs, development of Namibia's internet and broadband sector was long held back by high prices for international bandwidth, caused by the lack of a direct connection to international submarine fibre optic cables until 2011 when the WACS cable landed in the country. International cable services were launched in May 2012. In parallel, Namibia is working to diversify its transit access routes via neighbouring countries, but broadband price reductions on the retail level have remained moderate.
The country's boom in broadband services has been helped by developments with 3G and 4G mobile services, as well as by investments in national fibre backbone infrastructure. Several WiMAX and other wireless broadband services offer additional access options and are standing by to bring additional competition to the voice market as well, once internet telephony is deregulated.
LTE fourth generation (4G) mobile services launched;
WACS international submarine fibre optic cable brings more internet bandwidth;
3G mobile broadband prices remain stable following 4G launch;
Market analysis to October 2013;
Estimates for mobile, fixed-line and internet market to end-2013;
Profiles of major players in all market sectors.
Migration from analogue to digital broadcasting making progress.
Portugal Telecom's merger with Brazil's main telco Oi, initiated in October 2013, will have implications for the former's partner in Namibia MTC, in delivering the operator benefits of scale as well as access to technologies.
Leo rebranded as TN Mobile and the operator invests in LTE infrastructure.
Estimated market penetration rates in Namibia's telecoms sector end-2013
Market | Penetration rate
Mobile | 113%
Fixed | 7%
Internet | 13%
(Source: BuddeComm based on various sources)
Companies covered in this report:
Mobile Telecommunications Ltd (MTC);
Cell One (Leo, Orascom);
MTN Business Namibia;
Africa Online Namibia;
Internet Technologies Namibia;