Observer Money had a sit-down with Communications Regulatory Authority of Namibia (Cran) chief executive officer Emilia Nghikembua about issues in the telecommunications sector.
Observer money (OM): Paratus has announced plans to launch its mobile phone offering. What does this mean for the mobile phone market from the Cran’s perspective?
Emilia Nghikembua (EN): Paratus Telecommunications launching a mobile phone service signifies increased market competition, which can benefit consumers through better prices, improved quality of service and customer experience. It encourages innovation, expands network options, and stimulates industry growth. Overall, Paratus’ entry is viewed as a positive development for a more competitive and diverse mobile market.
OM: What kind of mobile phone licence has been granted to Paratus by Cran?
EN: Namibia follows a service technology-neutral service licensing regime as set out in the Communications Act. Paratus has been awarded a Class Comprehensive Telecommunications Service Licence (ECS & ECNS) since March 2012. This licence is a combination of Electronic Communications Network Service (ECNS) and Electronic Communications Service (ECS) and therefore allows the licensee to provide any telecommunications services (including mobile) to its customers and own and operate a network.
OM: Is there room for another mobile operator given we already have TN Mobile and MTC?
EN: The telecommunications market is hugely concentrated in one entity; hence, yes, there is still room for another mobile operator to foster competition, improve service quality, and offer innovative solutions.
OM: Can you give us statistics on the mobile phone market in Namibia and levels of its penetration?
EN: According to CRAN’s statistics newsletter for 2024, mobile phone penetration in Namibia has seen significant growth, with approximately 85% to 90% of the population owning a mobile device. The market is dominated by major providers like MTC and Telecom Namibia, offering widespread 3G and 4G services.
Mobile broadband adoption has increased, driven by affordable smartphones and expanding network coverage, especially in urban areas. Despite high penetration rates, rural regions still face connectivity and affordability challenges. Overall, Namibia’s mobile market remains vital for communication, financial inclusion, and digital services, reflecting strong growth potential as infrastructure continues to improve.
Moreover, between 2018 and 2023, the Namibian ICT sector’s revenues grew 17%, but in US dollar terms, they declined 16% due to inflation, with net profits falling 28%. Assets and shareholders’ equity increased slightly, signalling investor confidence despite stagnant profits.
OM: Can you provide us with an update on the application by Starlink to enter the Namibian market? When will Starlink start operating in Namibia?
EN: Starlink submitted a telecommunications service licence application in June 2024. One of the criteria is that an applicant must be 51% Namibian owned and controlled. The Communications Act (No. 8 of 2009) further provides that if an applicant does not meet this criterion, they must apply for exemption from the minister of ICT. Since Starlink is 100% foreign owned and controlled, Starlink applied for exemption to the minister of ICT. To this end, the Authority cannot finalise the licence consideration until the Minister of ICT pronounces herself on the ownership exemption application.
The licence application is handled by Cran, and the ownership exemption is handled by the Minister of Information and Communications Technology. However, the licence application can only be finalised once the ownership exemption application has been duly considered.
In this instance, the application may take longer considering that CRAN must first wait for the ownership exemption application to be finalised by the minister of ICT.
