Is Namibia’s telecommunications sector robust?

IN Namibia’s 17th year of statehood, many a commentator has taken a critical look at the achievements to date and the challenges that lie ahead for Namibia.

This opinion piece will examine the telecommunications landscape from the perspective of one who believes that we have much to celebrate and share with the rest of the world unashamedly. I will not be shouting from the hinterlands of cloud cuckoo land when I proudly pronounce that Namibia has made good progress since the start of the commercialisation of the telecommunications sector in 1992.We have achieved what many an African country is still battling with, thanks to the remarkable foresight of the founding fathers and mothers of this land.It is a proven fact that all sectors of any economy rely heavily on good telecommunications infrastructure.In some instances communications costs can account for up to some 20 to 30 per cent of total operating expenditure for many a business.It is, therefore, no exaggeration to argue that is one of the key considerations to take into account when investors conduct a due diligence on a nation’s competitiveness and suitability for investment.Given the undisputed role that the sector plays economically, where are we as a nation state in terms of telecommunications readiness? Alternatively put, what can comprise a Top 10 list of achievements and how rocky is the road ahead for Namibia? TOP 10 ACHIEVEMENTS 1.Namibia is one of the few countries in the world that boast a telecommunications sector without a single analogue switch.The entire country is digitalised, in other words, barring a few analogue lines in a few rural settings, all switching is digital.That is no minor feat in one of the world’s most sparsely populated countries with a very challenging terrain.2.The entire country boasts an extensive fibre-optic backbone to carry all voice and data traffic from all geographic corners of this vast land.Again, even some of the most developed countries of the world cannot boast such an achievement.A definite cause to celebrate in this day and age when data revenue is likely to increase significantly in lieu of voice for most operators.Thanks to Telecom Namibia and its shareholder in leapfrogging many technological advances on this score.3.Equally admirable mobile penetration rates of at least 27% rank Namibia amongst the leading countries of the world.We love to talk on the move and that’s good economically.These rates should see further improvements as CellOne rolls its network out to achieve the same number of base stations and related coverage as MTC in five years’ time.4.Geographic or surface coverage of mobile services currently stands at some 65% in a country where a third of the landscape is desert.Again, that ranks Namibia amongst the top five countries in Africa.That took prophetic foresight from MTC and its shareholders to propel the country forward into the future by sometimes covering some of the least economically viable localities in the process.5.All Namibian arterial roads enjoy mobile coverage, which positively impacts farming communities, emergency services, road users and tourist traffic.No real business case exists for doing this except that it provides for good social investment capital while making the country even more attractive from an investment perspective.6.Ninety-six per cent of the population is now covered with a mobile signal and with the entry of the second mobile operator we should see that figure rise even further to compete against the best in the world.It should not be uncommon for us to start talking about population coverage figures in excess of 100% in a few months.7.We are only the second country in Africa (after South Africa) to boast a 3G/HSDPA network giving high bandwidth users on mobile a real choice.MTC is only the third network to have offered such a service on the continent as at December 2006.Email and access to the Web on the move is a reality and Namibia ranks high on the continent and in the world.8.Broadband is here and pricing will improve in time for all citizens to have access.I make the point elsewhere on this issue as one of the remaining blemishes on the telecommunications landscape.The fact that broadband is available is an achievement in itself but we all recognise that much work needs to be done by all stakeholders involved to move us to higher heights.9.We offer robust GSM and CDMA networks (albeit in the midst of an ocean of legislative confusion).Consumers have a choice between “real” and “fixed or limited” mobility.10.The cost of access to telephony is on a downward spiral, albeit at a much slower pace than many would have expected.The reality is that prices have not been rising for both fixed and mobile access in Namibia, as would typically be the case in markets where operators are not very market oriented.Having enumerated what I think are some of the key achievements, what are the challenges the country must confront as a matter of priority and with a sense of urgency, in the short and medium terms.CHALLENGES AHEAD 1.ICT and education: ETSIP and related efforts of the Ministry of Education and other players are commendable and noteworthy with regard to deploying ICT solutions in educational settings if our future generations are to do well.All players in the telecommunications sector should, as a matter of policy or licence requirements, be compelled to make some contribution to this effort.While a case can be made for all other forms of social investment, a nation that cannot participate fully in the knowledge society of the present and that of the future is doomed.The focus should not simply be on providing a number of desktops in schools but to offer appropriate and meaningful access and tuition to both educators and students alike.If education and therefore schools are the centres that lead us all out of darkness in classical terms, then robust and relevant ICT deployment cannot be ignored.2.ICT in community centres: Similar to schools and ICT, a case needs to be made for carefully resourced and managed community centres.What use is it when we have a country that boasts all these world-class achievements when all our people are not positively impacted in the quest to reduce the glaring disparities along numerous divides? Simple access to everyday concerns such as sending emails, photocopying, word processing, access to the Web add tremendous value to people’s lives.Again, the emphasis is on relevant, meaningful and value-adding access for communities.In the not-so-distant future, one can consider other sophisticated uses such as video conferencing but a start needs to be made at a very basic level before we leap forward.3.Improved international bandwidth: All players in the telecommunications sector are agreed that voice is a declining business as a source of future revenues and that data revenues are on the rise globally.That is not to argue that voice will die but it is true that all evidence points to a rapid increase in data traffic globally.And if data is the future, Namibia has a serious challenge on this score because we are a nation that is bandwidth starved! One can launch all the timely 3G/HSDPA or broadband solutions, but with no significant increase in the amount of bandwidth the country has access to, we will never enjoy the true pleasures that those services promise.Namibia remains starved of critical access to good quality international bandwidth.Monopoly in this area has held Namibia ransom to the dark ages and proven supremely counterproductive for players aspiring to provide solutions in the data market at competitive prices.4.Close the legislative vacuum: The events surrounding Telecom Namibia’s Switch product or MWeb’s broadband offering debacles now in the hands of legal people have brought to the fore many of the issues that were simmering in the foxholes of the Namibian telecommunications landscape.Without rehashing the debates around these and related issues, there seems to be a consensus on key considerations as far as the legislation that governs the sector is concerned: * Issue service and technology-neutr
al licences for all.In the age of convergence of technologies, players are forced to consider customer-centric solutions that integrate more technologies than might be the case at the moment.Customers are interested in what is being offered as opposed to with which technology.If this was the case, the MTC/CellOne vs Telecom Namibia and the Switch debacle would have never played itself out in the manner it did recently.* Establish a fully empowered and well-resourced telecommunications sector regulator.What is the point of having a regulator when it is handicapped legally and resource-wise to independently manage the governance issues in the industry effectively? * If all else fails, pass the present draft bill into law.The continued ineffective governance of the sector sends mixed messages about the future of the sector and can impact future investments as was proven in the Switch debate.The present draft bill attempts to move us closer to the ideal legislative framework required for a future-proof telecommunications sector.Passing that into law would clarify roles and obligations of all players while the debates on other equally substantive issues rage on.CONCLUSION This piece has argued that much has been achieved since 1992 as far as liberalisation of the Namibian telecommunications sector is concerned.Much work lies ahead and it will require brave and decisive men and women to shape the future.The present state of inertia as far as the passing of the draft bill on the sector into law is concerned will unfortunately sell the country short of establishing a robust and future-proof telecommunications sector.It is a responsibility we cannot shy away from lest we be blamed by future generations of not having been bold enough when we had the opportunity to do the right thing.* Albertus Aochamub works for MTC Namibia as the GM: Corporate Services.The opinions expressed herein are not necessarily those of his employer and are solely accredited to the author.I will not be shouting from the hinterlands of cloud cuckoo land when I proudly pronounce that Namibia has made good progress since the start of the commercialisation of the telecommunications sector in 1992.We have achieved what many an African country is still battling with, thanks to the remarkable foresight of the founding fathers and mothers of this land. It is a proven fact that all sectors of any economy rely heavily on good telecommunications infrastructure.In some instances communications costs can account for up to some 20 to 30 per cent of total operating expenditure for many a business.It is, therefore, no exaggeration to argue that is one of the key considerations to take into account when investors conduct a due diligence on a nation’s competitiveness and suitability for investment. Given the undisputed role that the sector plays economically, where are we as a nation state in terms of telecommunications readiness? Alternatively put, what can comprise a Top 10 list of achievements and how rocky is the road ahead for Namibia? TOP 10 ACHIEVEMENTS 1.Namibia is one of the few countries in the world that boast a telecommunications sector without a single analogue switch.The entire country is digitalised, in other words, barring a few analogue lines in a few rural settings, all switching is digital.That is no minor feat in one of the world’s most sparsely populated countries with a very challenging terrain.2.The entire country boasts an extensive fibre-optic backbone to carry all voice and data traffic from all geographic corners of this vast land.Again, even some of the most developed countries of the world cannot boast such an achievement.A definite cause to celebrate in this day and age when data revenue is likely to increase significantly in lieu of voice for most operators.Thanks to Telecom Namibia and its shareholder in leapfrogging many technological advances on this score.3.Equally admirable mobile penetration rates of at least 27% rank Namibia amongst the leading countries of the world.We love to talk on the move and that’s good economically.These rates should see further improvements as CellOne rolls its network out to achieve the same number of base stations and related coverage as MTC in five years’ time. 4.Geographic or surface coverage of mobile services currently stands at some 65% in a country where a third of the landscape is desert.Again, that ranks Namibia amongst the top five countries in Africa.That took prophetic foresight from MTC and its shareholders to propel the country forward into the future by sometimes covering some of the least economically viable localities in the process.5.All Namibian arterial roads enjoy mobile coverage, which positively impacts farming communities, emergency services, road users and tourist traffic.No real business case exists for doing this except that it provides for good social investment capital while making the country even more attractive from an investment perspective.6.Ninety-six per cent of the population is now covered with a mobile signal and with the entry of the second mobile operator we should see that figure rise even further to compete against the best in the world.It should not be uncommon for us to start talking about population coverage figures in excess of 100% in a few months.7.We are only the second country in Africa (after South Africa) to boast a 3G/HSDPA network giving high bandwidth users on mobile a real choice.MTC is only the third network to have offered such a service on the continent as at December 2006.Email and access to the Web on the move is a reality and Namibia ranks high on the continent and in the world.8.Broadband is here and pricing will improve in time for all citizens to have access.I make the point elsewhere on this issue as one of the remaining blemishes on the telecommunications landscape.The fact that broadband is available is an achievement in itself but we all recognise that much work needs to be done by all stakeholders involved to move us to higher heights.9.We offer robust GSM and CDMA networks (albeit in the midst of an ocean of legislative confusion).Consumers have a choice between “real” and “fixed or limited” mobility.10.The cost of access to telephony is on a downward spiral, albeit at a much slower pace than many would have expected.The reality is that prices have not been rising for both fixed and mobile access in Namibia, as would typically be the case in markets where operators are not very market oriented.Having enumerated what I think are some of the key achievements, what are the challenges the country must confront as a matter of priority and with a sense of urgency, in the short and medium terms. CHALLENGES AHEAD 1.ICT and education: ETSIP and related efforts of the Ministry of Education and other players are commendable and noteworthy with regard to deploying ICT solutions in educational settings if our future generations are to do well.All players in the telecommunications sector should, as a matter of policy or licence requirements, be compelled to make some contribution to this effort.While a case can be made for all other forms of social investment, a nation that cannot participate fully in the knowledge society of the present and that of the future is doomed.The focus should not simply be on providing a number of desktops in schools but to offer appropriate and meaningful access and tuition to both educators and students alike.If education and therefore schools are the centres that lead us all out of darkness in classical terms, then robust and relevant ICT deployment cannot be ignored. 2.ICT in community centres: Similar to schools and ICT, a case needs to be made for carefully resourced and managed community centres.What use is it when we have a country that boasts all these world-class achievements when all our people are not positively impacted in the quest to reduce the glaring disparities along numerous divides? Simple access to everyday concerns such as sending emails, photocopying, word processing, access to the Web add tremendous value to people’s lives.Again, the emphasis is on relevant, meaningful and value-adding access for communities.In the n
ot-so-distant future, one can consider other sophisticated uses such as video conferencing but a start needs to be made at a very basic level before we leap forward. 3.Improved international bandwidth: All players in the telecommunications sector are agreed that voice is a declining business as a source of future revenues and that data revenues are on the rise globally.That is not to argue that voice will die but it is true that all evidence points to a rapid increase in data traffic globally.And if data is the future, Namibia has a serious challenge on this score because we are a nation that is bandwidth starved! One can launch all the timely 3G/HSDPA or broadband solutions, but with no significant increase in the amount of bandwidth the country has access to, we will never enjoy the true pleasures that those services promise.Namibia remains starved of critical access to good quality international bandwidth.Monopoly in this area has held Namibia ransom to the dark ages and proven supremely counterproductive for players aspiring to provide solutions in the data market at competitive prices.4.Close the legislative vacuum: The events surrounding Telecom Namibia’s Switch product or MWeb’s broadband offering debacles now in the hands of legal people have brought to the fore many of the issues that were simmering in the foxholes of the Namibian telecommunications landscape.Without rehashing the debates around these and related issues, there seems to be a consensus on key considerations as far as the legislation that governs the sector is concerned: * Issue service and technology-neutral licences for all.In the age of convergence of technologies, players are forced to consider customer-centric solutions that integrate more technologies than might be the case at the moment.Customers are interested in what is being offered as opposed to with which technology.If this was the case, the MTC/CellOne vs Telecom Namibia and the Switch debacle would have never played itself out in the manner it did recently.* Establish a fully empowered and well-resourced telecommunications sector regulator.What is the point of having a regulator when it is handicapped legally and resource-wise to independently manage the governance issues in the industry effectively? * If all else fails, pass the present draft bill into law.The continued ineffective governance of the sector sends mixed messages about the future of the sector and can impact future investments as was proven in the Switch debate.The present draft bill attempts to move us closer to the ideal legislative framework required for a future-proof telecommunications sector.Passing that into law would clarify roles and obligations of all players while the debates on other equally substantive issues rage on.CONCLUSION This piece has argued that much has been achieved since 1992 as far as liberalisation of the Namibian telecommunications sector is concerned.Much work lies ahead and it will require brave and decisive men and women to shape the future.The present state of inertia as far as the passing of the draft bill on the sector into law is concerned will unfortunately sell the country short of establishing a robust and future-proof telecommunications sector.It is a responsibility we cannot shy away from lest we be blamed by future generations of not having been bold enough when we had the opportunity to do the right thing.* Albertus Aochamub works for MTC Namibia as the GM: Corporate Services.The opinions expressed herein are not necessarily those of his employer and are solely accredited to the author.