Wednesday, 13 November 2024

Namibia's Digital Transformation Journey Continues Unabated

Namibia, with its vast landscapes and scattered population, presents unique challenges for mobile operators. As of 2024, the mobile sector in Namibia has continued to grow steadily, with increasing investment in infrastructure, wider network coverage, and improved service offerings.

According to GSMA Intelligence, Namibia had 2.91 million mobile connections at the beginning of 2024. However, it's important to note that many people globally use multiple mobile connections—one for personal use and another for work, for instance—so it's common for the number of connections to surpass the total population. GSMA Intelligence data shows that, as of January 2024, mobile connections in Namibia equalled 110.8% of the population. This represents a decrease of 18,000 connections (or -0.6%) from the start of 2023 to the start of 2024.

The major players in Namibia's mobile telecommunications sector are Mobile Telecommunications Limited (MTC) and Telecom Namibia, with other operators like Paratus offering specialized services. MTC’s market share in subscriber terms was 82% at the end of 2023 and Telecom Namibia at 17%. Paratus does not yet have a significant number of wireless subscribers, only 0.3%.

Mobile network coverage continues to increase across the country, with the regulator having urged the MNOs to focus investment in rural areas and thus support the government’s broadband coverage targets. The government in late 2023 lifted its moratorium against 5G deployments and the regulator followed by completing an auction of 5G-suitable spectrum in the 700MHz range. MTC began trialling 5G at the end of the year, while the regulator launched a campaign to educate the public about the benefits of 5G while dispelling the misinformation about the technology which had stalled its adoption earlier.

MTC is the first mobile phone provider with the most customers in Namibia and a pretty good coverage. It's the recommended network for travellers.  

MTC has retained its dominant position in Namibia's mobile telecom market, holding an estimated 84% market share, covering 98% of the population, and serving a customer base of 2.17 million, according to managing director Licky Erastus. The company has also aggressively expanded into the internet and fixed-line broadband market, achieving a 115% increase in revenue growth.

MTC's network now consists of 1,014 active sites, with 70% of these sites 4G-enabled, handling 50% of the company’s mobile data traffic.

Erastus noted that MTC initiatives continue to ensure that rural Namibians have access to the same mobile broadband experience as those in urban areas. In 2023, MTC upgraded 97 rural sites, 67 of which were equipped with refarmed spectrum to support 4G/LTE technology.

MTC and Huawei Technologies have held the country's first 5G technology demonstration in Windhoek after the government lifted a moratorium on 5G and allocated spectrum to telecom providers.

Minister of ICT, Emma Theofelus, hailed the event as a milestone for Namibia, emphasizing the importance of adopting advanced technology for national development. "This trial marks Namibia's commitment to leveraging technology for progress," she said, highlighting 5G's role in enabling e-governance, e-commerce, and e-health through faster connectivity. Huawei has previously partnered with MTC to bring 3G, 4G, and 4.5G technologies to Namibia.

Telecom Namibia Limited is the national telecommunications operator, established in August 1992 and wholly owned by the Government of the Republic of Namibia. Telecom Namibia is serving more than 619,000 (fixed and mobile) customers and annual revenue of more than N$ 1,4 Billion. Telecom Namibia runs the largest Digital Telecommunication Network in Namibia. The company is a leading supplier of voice, text, data and video solutions.

Telecom Namibia has entered into a five-year partnership with Huawei Technologies Namibia, aiming to enhance its mobile network capabilities and coverage nationwide. This collaboration is part of Telecom Namibia's Integrated Strategic Business Plan (ISBP) 2027, which outlines plans to invest in modernizing and expanding the TN mobile network. The initiative includes the deployment of new mobile base stations and upgrading existing ones across the country. Under the agreement, Telecom Namibia will acquire advanced mobile radio access equipment from Huawei to boost network capacity and coverage, particularly in underserved areas. This partnership will support the rollout of cutting-edge mobile technologies such as 4G, 4.5G, and 5G, providing consumers with faster, more reliable mobile broadband services.

Paratus Telecom holds licenses for 4G/LTE on band 3 (1800 MHz) in Windhoek and refarms its old WIMAX customers to 2600 TD-LTE (Band 38). It boast with the lowest prices for data in the country, but its network is limited to 4G/LTE.

Paratus is currently serving over 700 commercial and business customers across Namibia and quickly expanding into the residential and small business markets.  Additionally, Paratus is also now peering with four national and eight international interconnect operators to provide global calling plans.

The mobile telecommunications sector in Namibia is at an exciting phase, with major operators like MTC and Telecom Namibia leading the charge toward a more connected and digital future. However, significant challenges remain in terms of affordability, rural access, and staying competitive in the rapidly changing technological landscape. Despite these hurdles, the future looks bright, with a clear focus on innovation and expanding services to meet the needs of the entire population.

Namibia's journey to becoming a fully connected society will depend on sustained investment, collaboration between private and public sectors, and the continual evolution of mobile technology.

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