The Communications Regulatory Authority of Namibia (CRAN), CEO Emilia Nghikembua talks about investments in the communication sector, Starlink submitting an application for licences, the Universal Service Fund and CRAN’s position on streaming services.
Observer Money (OM): It was reported by CRAN that investments in the Namibian telecommunications sector reached N$267 million during the first quarter of 2024, marking a substantial increase from the N$137 million recorded in the fourth quarter of 2023. What do you expect for the rest of the year?
Emilia Nghikembua (EN): The Authority expects continuous growth in ICT investment throughout the remainder of the year. This is driven by ongoing projects aimed at increasing universal access to telecommunications services. This will be achieved through the implementation of imposed roll-out obligations on licensees as part of the bidding process for the 700MHz and 800MHz spectrum bands which was completed in 2023. The growth will be further attributed to commercial roll out plans of operators as part of their business cases. As a result, we do anticipate that investments will continue to increase for the rest of the year.
OM: We have seen Starlink investing in countries like Zambia and Zimbabwe, do we have foreign companies including Starlink planning to invest in Namibia?
EN: Starlink has submitted an application for licences to the Authority, and the application is being processed and considered in terms of the provisions of the Communications Act (No.8 of 2009) and relevant regulations.
OM: What are some of the major planned programmes that CRAN expects to carry out in the telecommunications industry in 2024?
EN: 2024 will be the second year of our three-year integrated strategic business plan. We intend to successfully implement initiatives around improving affordability of ICT services and products for consumers. This will include initiatives aimed at ascertaining the reasonability of tariffs for data and voice and taxation of ICT products and services. Improving quality of service to enhance customer experience. This will include initiatives aimed at improving quality of service, and to primarily ensure that consumers receive the minimum quality of services that they signed up for.
Improving access to universal telecommunications services. This will be achieved through the launch of the Universal Service Fund to ensure that all citizens have meaningful connectivity. The anticipated operationalization of the Universal Service Fund, in 2024 thus remains a key enabler for digital transformation in Namibia. The launch is complemented by governments commitment to make over N$100 million available for deployment of ICT infrastructure.
OM: How did SIM card registration impact the industry both in positive and negative terms?
EN: The SIM registration process impacted the industry positively in that operators now know their consumers. Therefore, the benefits of SIM card registration include aiding crime investigations involving mobile devices and providing consumers with a digital identity. Additionally, it enables increased access to digital and online services, supporting virtual education, mobile banking, and online shopping.
OM: What is your comment on the expected takeover of Multichoice by Chanel+, what role will CRAN play on this deal in Namibia?
EN: We are yet to understand the full context of the envisaged transaction to ascertain compliance with the regulatory framework, if any. In general terms however, the Communications Act empowers CRAN to review mergers and acquisitions to ensure compliance with local Namibian ownership requirements and safeguard the interests of consumers and competition in the market.
OM: Traditional broadcasting is facing competition from streamlining services like Netflix and others, do we have plans to licence streaming services like Netflix in Namibia?
EN: The current legislative framework does not empower CRAN to regulate streaming services. We are however working on a research paper to determine the impact of streaming services on traditional broadcasting. The outcome of the research will be used as a basis to inform policy and legislative reforms.
OM: What is CRAN’s position on streaming services?
EN: Our innate mandate is to promote technological innovation and hence we are generally supportive of any services that emanate from innovation. We are however concerned about other ancillary considerations that emanate from innovation such as copyright infringement, data privacy, and the impact of streaming services on traditional media industries. This is why there is a need for policy and legislative reforms in Namibia to ensure consumer protection and fair and competitive market practices.
OM: How do telecommunications services charges in Namibia compare to the rest in SADC?
EN: Telecommunications services charges in Namibia reduced significantly in 2023 due to some interventions from CRAN in the last quarter of 2022. Namibia was ranked 46th in Africa at the end of 2022 but improved the ranking to 12th in 2023 for a 1 GB basket per month. There is however still room for improvement and the Authority is working hard to ensure interventions on price reductions, primarily around the cost of data.
