Cabinet restricts Telecom’s Switch

THOUSANDS of users of Telecom Namibia’s recently introduced mobile phone service will not be able to use it to roam from town to town from next week, as the communication radius will be reduced to 60 kilometres.

The country’s major cellphone operator, MTC, objected to the decision, saying that it does not address the fundamental issue of not allowing roaming, or handover between cells, even if it is in the same town. “Handing over between cells is the licensed domain of the two mobile operators in Namibia, for which we have paid licence fees,” MTC in reaction to the development.MTC says “allowing Telecom Namibia to infringe on the licensed right of mobile operators means that there are now three operators in the market while it was clear that there would only be two when Portugal Telecom bought the 34 per cent state in MTC Namibia”.According to MTC, the latest Cabinet decision would send mixed messages to potential international investors in the Namibian telecommunications industry.”It jeopardises MTC’s value and what Portugal Telecom paid for.This is clearly a breach of trust and confidence in the local market,” MTC says.Cabinet on Tuesday resolved to restrict the new service until new legislation on communication will be tabled later this year.”The decision was taken after a recommendation made by the ad hoc Cabinet Committee on this matter,” acting Information Minister Nangolo Mbumba told reporters Thursday afternoon.The new product uses digital transmission of radio signals for data and voice calls.Telecom Namibia last December acquired an IP/MPLS data backbone network for N$120 million.The new network is based on the Internet Protocol (IP) and Multiprotocol Label Switching (MPLS).Telecom wants to become a single communications service provider for all different telecommunications services using a single platform.MTC and newcomer Cell One cried foul and called the new service unfair competition on the mobile telecommunication market.According to the Cabinet briefing paper, the Office of the Prime Minister, supported by the Ministers of Information and Broadcasting and Works, Transport and Communication, tabled the report of the Cabinet Ad-hoc Committee on the Switch service.”The Namibia Communication Commission (NCC) argued that Telecom had infringed on mobile communications technology, whereas they were not licensed to do so,” Mbumba said.”In the joint report to Cabinet, the Office of the Prime Minister recommended that the Switch product be limited geographically per town or settlement area, with no roaming between towns until the envisaged information and communications bills are enacted,” the Minister added.The range permitted would only be up to 60 kilometres.”The Namibia Communication Commission was instructed to enforce these restrictions,” Minister Mbumba added.Cabinet, in line with the report, approved that the draft Information and Communications Bill be subjected to another round of consultations with stakeholders.This process is to be driven by a task force, chaired by the Justice Ministry.The task force will comprise officials from the Ministry of Works, Transport and Communications and the Ministry of Information and Broadcasting, with the assistance of an international expert sourced through the International Telecommunications Union or the NCC.The process should be completed within three months from the date of the Cabinet Action Letter and the bill is to be tabled in Parliament within 30 calendar days thereafter.Cabinet also instructed the NCC to honour its commitments in terms of frequency assignment to communication companies.Cabinet also resolved on Tuesday that Namibia Post and Telecommunications Holdings Company (NPTH) should “sort out governance matters within the Group.”NPTH was also advised to engage expertise to advise on its telecommunication sector participation.NPTC is the holdings company for NamPost, Telecom Namibia and MTC.”At the moment, MTC and Telecom are practically competing against each other, but both are part of the same Group,” Minister Mbumba pointed out at the media briefing.”Handing over between cells is the licensed domain of the two mobile operators in Namibia, for which we have paid licence fees,” MTC in reaction to the development.MTC says “allowing Telecom Namibia to infringe on the licensed right of mobile operators means that there are now three operators in the market while it was clear that there would only be two when Portugal Telecom bought the 34 per cent state in MTC Namibia”.According to MTC, the latest Cabinet decision would send mixed messages to potential international investors in the Namibian telecommunications industry.”It jeopardises MTC’s value and what Portugal Telecom paid for.This is clearly a breach of trust and confidence in the local market,” MTC says.Cabinet on Tuesday resolved to restrict the new service until new legislation on communication will be tabled later this year.”The decision was taken after a recommendation made by the ad hoc Cabinet Committee on this matter,” acting Information Minister Nangolo Mbumba told reporters Thursday afternoon.The new product uses digital transmission of radio signals for data and voice calls.Telecom Namibia last December acquired an IP/MPLS data backbone network for N$120 million.The new network is based on the Internet Protocol (IP) and Multiprotocol Label Switching (MPLS).Telecom wants to become a single communications service provider for all different telecommunications services using a single platform.MTC and newcomer Cell One cried foul and called the new service unfair competition on the mobile telecommunication market.According to the Cabinet briefing paper, the Office of the Prime Minister, supported by the Ministers of Information and Broadcasting and Works, Transport and Communication, tabled the report of the Cabinet Ad-hoc Committee on the Switch service.”The Namibia Communication Commission (NCC) argued that Telecom had infringed on mobile communications technology, whereas they were not licensed to do so,” Mbumba said.”In the joint report to Cabinet, the Office of the Prime Minister recommended that the Switch product be limited geographically per town or settlement area, with no roaming between towns until the envisaged information and communications bills are enacted,” the Minister added.The range permitted would only be up to 60 kilometres.”The Namibia Communication Commission was instructed to enforce these restrictions,” Minister Mbumba added.Cabinet, in line with the report, approved that the draft Information and Communications Bill be subjected to another round of consultations with stakeholders.This process is to be driven by a task force, chaired by the Justice Ministry.The task force will comprise officials from the Ministry of Works, Transport and Communications and the Ministry of Information and Broadcasting, with the assistance of an international expert sourced through the International Telecommunications Union or the NCC.The process should be completed within three months from the date of the Cabinet Action Letter and the bill is to be tabled in Parliament within 30 calendar days thereafter.Cabinet also instructed the NCC to honour its commitments in terms of frequency assignment to communication companies.Cabinet also resolved on Tuesday that Namibia Post and Telecommunications Holdings Company (NPTH) should “sort out governance matters within the Group.”NPTH was also advised to engage expertise to advise on its telecommunication sector participation.NPTC is the holdings company for NamPost, Telecom Namibia and MTC.”At the moment, MTC and Telecom are practically competing against each other, but both are part of the same Group,” Minister Mbumba pointed out at the media briefing.