Executive summary
WACS international fibre optic cable sets the stage for a broadband boom
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-2012;
- 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 mobile broadband services and pricing;
- Average revenue per user.
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 Cell One (renamed Leo by its new owner, Orascom) – have entered the internet and broadband market with mobile data services in a bid to create new revenue streams.
Fixed-line services are still a monopoly of Telecom Namibia, but as a member of the WTO the government plans to open the telecom sector to full competition. Telecom Namibia has entered the lucrative mobile market as the third player with a CDMA network but was put on hold by the industry regulator, 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, 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 has been held back by high prices for international bandwidth, caused by the lack of a direct connection to international submarine fibre optic cables. This changed in early 2011 when the WACS cable landed in the country. In parallel, Namibia is working to diversify its transit access routes via neighbouring countries, but broadband price reductions on the retail level have only been moderate so far.
The country is well prepared for a broadband boom, with 3G mobile services and a national fibre backbone infrastructure in place. 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:
- New regulatory authority becomes operational;
- First international submarine fibre optic cable lands in the country;
- Market analysis 2011;
- Estimates for mobile, fixed-line and internet market to end-2012;
- Profiles of major players in all market sectors;
- Update on national fibre rollout;
- Mobile ARPU trends 2004-2010.
Estimated market penetration rates in Namibia’s telecoms sector – end 2011
Market
| Penetration rate
|
|---|
Mobile
| 109%
|
Fixed
| 7%
|
Internet
| 8%
|
(Source: BuddeComm based on various sources)
Data in this report is the latest available at the time of preparation and may not be for the current year.
Peter Lange
June 2011
