Politics, red tape hamper MTC tower roll-out

ADMINISTRATIVE delays and political clashes are affecting the government’s plan to spend N$1,1 billion in improving the country’s cellular and internet connectivity over the next three years.

The government intends spending N$1,1 billion to construct over 520 towers across the country to expand the cellphone network, especially in rural areas.

However, the billion-dollar project, to be funded by MTC, has already caused divisions in powerful circles, including arousing claims that the contract was inflated and not approved by the MTC board before being rolled out.

Documents and people briefed on this matter say Chinese mobile technology firm Huawei won the contract to supply MTC with the telecommunications equipment for the towers, with around 18 Namibian companies either involved in constructing the towers, or supplying materials.

Efforts to get comment from MTC chairperson Elvis Nashilongo were unsuccessful, but understands that even though roll-out has started, the project has already been affected by several delays.

The delays include getting environmental clearance certificates from the environment ministry, which is delaying the construction of the towers.

The target for this year is to construct around 300 towers (272 in rural areas), but only about 80 towers have received environmental clearance for this year.

“The process is slow,” an MTC director, who is not allowed to speak on this matter, said.

Two sides appear to have emerged in this saga. One group believes the project should go ahead since MTC has for years catered for towns, and not rural areas.

Another group in government believes that MTC should not splash billions into network expansion because it would affect the value of the company, which is set to be listed this year.

The Namibian understands that MTC board members are worried that the dual reporting of MTC to two ministers has put them in a dilemma as to whose instructions to follow.

The communications ministry has over recent months been on a publicity campaign to promote the ‘MTC 081 Every1’ project.

While the communications ministry is happy about this project, senior officials at the public enterprises ministry are said to be against the structure of that project, and could play it down later.

A person involved in this matter said the commitment to provide 100% network coverage should not be left to MTC alone whereas other telecoms companies would also enjoy the benefits later.

For instance, the French communications regulator forced mobile network operators to spend over N$50 billion (US$3,7 billion) to roll out faster internet connectivity (4G) by 2020, a government minister said.

The cracking of the whip by the French regulator is contrary to what Namibia’s regulator, the Communications Regulatory Authority of Namibia (Cran), has been doing in ensuring improved national network coverage.

Meanwhile, plans are underway to appoint a new MTC board, a few months before the current board’s term ends. There is suspicion that the new board could abandon the 520-tower project in order to make MTC a lucrative company, instead of focusing on internet and mobile connectivity.

Communications minister Stanley Simataa insisted yesterday that there were no ulterior motives in appointing a new board.

A presentation made to the board in October 2017 said Chinese tech giant Huawei – the same company that gave Namibian lawmakers free Huawei MediaPad M3 Lite tablets – had a supply agreement with MTC for around 370 towers until 2021.

It is unclear what the exact terms of that agreement are, but that submission stated that the company has been providing sub-standard telecommunications services.

“Currently, MTC only covers the urban areas, and most rural areas are not covered. Current network is more of a 2G one. The 3G and 4G are only in urban areas,” the report said.

The abbreviation 3G stands for “third generation”, and is wireless technology which allows users to connect to the internet via their mobile phones or computers.

The document states that MTC wanted to spend N$1,1 billion to cover 115 000 subscribers (5%) of Namibia’s unconnected population.

However, critics say it would cost MTC N$10 000 per new customer, who is likely to contribute just N$40 per month.

Simataa insisted that the project is good for the country, and should be applauded.

According to him, there is an agreement for MTC to withhold the profits it was supposed to pay government as dividends.

Simataa said MTC should continue to improve their services in order to remain competitive.

“I am comfortable that they [MTC] are not going to do damage to their business,” he said, adding that key to this project was taking internet connectivity to rural areas which have been starved of the service for years.

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