Namibia - Telecoms, Mobile and Broadband

Namibia - Telecoms, Mobile and Broadband

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:

Key statistics;
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);
Infrastructure development;
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.

Market highlights:

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;
MTC launched MTC Money payment service;
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;
Government launches project to broadband-enable regional schools using white-space spectrum;
Government transfers its exclusive capacity in the WACS cable to Telecom Namibia;
Telecom Namibia launches LTE services;
MultiChoice expands DStv mobile TV service beyond Windhoek.
Windhoek Internet Exchange Point (WIXP) opens, ending depending on international connections for domestic access.
MTC reports a 13.8% growth in revenue in 2013.

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:

Telecom Namibia;
Mobile Telecommunications Ltd (MTC);
Cell One (Leo, Orascom);
MTN Business Namibia;
MWEB Namibia;
Africa Online Namibia;
Internet Technologies Namibia;

1. Executive summary
2. Key statistics
2.1 Country overview
3. Telecommunications market
3.1 Market analysis
3.2 Regional comparison
4. Regulatory environment
4.1 Ministerial Communications Division
4.2 Regulatory authority
4.2.1 CRAN (formerly NCC)
4.3 Post and Telecommunications Bill 1999
4.4 Draft Communications Bill 2002
4.5 Communications Act 2009
4.6 Telecom sector liberalisation in Namibia
4.7 International gateways
4.8 Interconnection
4.9 Value-added Tax (VAT)
4.10 Number Portability (NP)
5. Fixed-network operator in Namibia
5.1 Telecom Namibia
5.1.1 Fixed-line statistics
5.1.2 Network infrastructure
5.1.3 Wireless local loop (WLL)
5.1.4 Switch fixed or mobile?
5.1.5 VSAT
5.1.6 Data services
5.1.7 Next-generation network (NGN)
6. International infrastructure
7. Internet market
7.1 Overview
7.1.1 Internet statistics
7.2 Internet connectivity
7.3 Namibia's ISP market
7.3.1 MTN Business (formerly Verizon Business, UUNet Namibia)
7.3.2 Africa Online Namibia
7.3.3 Internet Technologies Namibia (ITN)
7.3.4 iWay
7.4 SchoolNet Namibia
8. Broadband market
8.1 ADSL
8.2 FttX
8.3 Wireless broadband
8.4 WiMAX
8.5 WiFi
9. Voice over internet protocol (VoIP) telephony
9.1 Digital Terrestrial TV (DTTV)
10. Digital economy
10.1 E-commerce
10.2 E-government
11. Mobile communications
11.1 Overview of Namibia's mobile market
11.1.1 The long road to Namibia's second mobile licence
11.1.2 Mobile statistics
11.2 Major mobile operators
11.2.1 MTC
11.2.2 TN Mobile (Cell One, Leo)
11.3 Mobile data services
11.3.1 SMS and MMS
11.3.2 GPRS/EDGE
11.3.3 3G/HSPA
11.3.4 Long-term Evolution (LTE)
11.3.5 EV-DO
11.4 Mobile content and applications
11.4.1 Mobile TV
11.4.2 Mobile banking
11.5 Satellite mobile
12. Related reports
Table 1 Country statistics Namibia 2013 (e)
Table 2 Fixed-line network statistics 2013 (e)
Table 3 Internet provider statistics 2013
Table 4 Internet and social media user statistics 2013 (e)
Table 5 Mobile statistics 2013 (e)
Table 6 National telecommunications authority
Table 7 Internal bandwidth 2003 - 2012
Table 8 Telecom Namibia financial data 2007 - 2012
Table 9 Historic - Fixed lines in service and teledensity 1995 - 2004
Table 10 Fixed lines in service and teledensity 2005 - 2014
Table 11 Historic - Internet users and penetration rate 1996 - 2004
Table 12 Internet users and penetration rate 2005 - 2014
Table 13 Historic - Mobile subscribers and penetration rate 2010 - 2013
Table 14 Historic - Mobile subscribers and penetration rate 1995 - 2004
Table 15 Mobile subscribers and penetration rate 2005 - 2014
Table 16 MTC mobile subscribers 2005 - 2013
Table 17 MTC mobile financial data 2005 - 2013
Table 18 MTC mobile revenue share by sector 2012 - 2013
Table 19 MTC ARPU ($) 2004 - 2010
Table 20 Netman 3G mobile broadband pricing May 2012
Chart 1 Fixed lines in service and teledensity 2005 2014
Chart 2 Internet users and penetration rate 1996 2014
Chart 3 Mobile subscribers and penetration rate 2005 - 2014
Exhibit 1 Map of Namibia

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