Switch is just fine: Nepru

THE Switch mobile telephone service offered by Telecom Namibia is a welcome relief, is legal and introduces lower fees to Namibians.

This is the conclusion of a study conducted by the Namibian Economic Policy Research Unit (Nepru), while compiling its latest policy brief entitled ‘Switch to competition – Regulatory challenges for Namibia’s telecommunication sector’. Entering the telecommunications market in November, Switch threw the sector into disarray with questions posed about its legality and the Namibian Communications Commission (NCC) confusing issues by threatening to revoke the frequency licence it had issued to Telecom.The two – Telecom and the NCC – have been at loggerheads over the latest service offered by the country’s sole fixed-line operator, Telecom Namibia.The country’s two mobile phone operators, Mobile Telecommunications Limited (MTC) and PowerCom (Cell One), have also questioned the Switch service, accusing Telecom of flouting regulations.The NCC entered into the dispute with Telecom over the legality of Switch after MTC and PowerCom pressurised the NCC to limit the frequency of Switch, so that it does not operate as a mobile phone service.Launching the policy brief in Windhoek on Friday, Nepru’s Senior Researcher Dr Christoph Stork said according to the Posts and Telecommunications Act of 1992, there was nothing wrong with Switch.”Nothing makes Switch illegal at the moment … For years we have been longing for competition in the telecom sector that will lead to lower prices and increased economic growth.”Now that the first signs of competition are on the horizon, should we really try and prevent operators from choosing the most cost-effective technical solution to provide telephony?” Nepru’s research confirmed consumers’ suspicions that MTC’s charges are very high (especially compared to other service providers in the region), adding that the entry of PowerCom would not change things much, but with Switch also in the playing field, the situation has changed.Switch, compared to mobile contracts locally, in Botswana and South Africa, proved to be the cheapest.Stork, however, called for implementation of a new Telecommunications Act to bring about the long-awaited sector reform.”The best way would be to issue service and technologically neutral licences to all three operators, Telecom Namibia, MTC and Cell One, to allow them to embrace global trends in a converging world,” he said.The introduction of Switch seems to have pulled the carpet from underneath PowerCom, as the second mobile licence holder was expected to launch its product by December last year, but consumers are still waiting to see what the company will offer.PowerCom chief Mac Allman has since said that his company would enter the market with a quality product during the first quarter of this year.Stork said the policy brief aimed at providing facts on discussions taking place between policymakers and various stakeholders concerning the regulatory issues reading Switch’s launch.”The whole picture needs to be considered when making policy decisions.The telecom sector is too important for the development of Namibia,” he said.Switch does not use Global System for Mobile Communications (GSM) but is rolled out on Telecom’s fixed-wireless service on the Code Division Multiple Access (CDMA) platform, which refers to mobile technology that does not allow roaming between cellphones.As a result of the telecom industry dispute, Cabinet intervened and a meeting chaired by Prime Minister Nahas Angula late last year appointed a technical committee to look into the legality of the Switch service.The committee was expected to hold its first meeting this month.Entering the telecommunications market in November, Switch threw the sector into disarray with questions posed about its legality and the Namibian Communications Commission (NCC) confusing issues by threatening to revoke the frequency licence it had issued to Telecom.The two – Telecom and the NCC – have been at loggerheads over the latest service offered by the country’s sole fixed-line operator, Telecom Namibia.The country’s two mobile phone operators, Mobile Telecommunications Limited (MTC) and PowerCom (Cell One), have also questioned the Switch service, accusing Telecom of flouting regulations.The NCC entered into the dispute with Telecom over the legality of Switch after MTC and PowerCom pressurised the NCC to limit the frequency of Switch, so that it does not operate as a mobile phone service.Launching the policy brief in Windhoek on Friday, Nepru’s Senior Researcher Dr Christoph Stork said according to the Posts and Telecommunications Act of 1992, there was nothing wrong with Switch.”Nothing makes Switch illegal at the moment … For years we have been longing for competition in the telecom sector that will lead to lower prices and increased economic growth.”Now that the first signs of competition are on the horizon, should we really try and prevent operators from choosing the most cost-effective technical solution to provide telephony?” Nepru’s research confirmed consumers’ suspicions that MTC’s charges are very high (especially compared to other service providers in the region), adding that the entry of PowerCom would not change things much, but with Switch also in the playing field, the situation has changed.Switch, compared to mobile contracts locally, in Botswana and South Africa, proved to be the cheapest.Stork, however, called for implementation of a new Telecommunications Act to bring about the long-awaited sector reform.”The best way would be to issue service and technologically neutral licences to all three operators, Telecom Namibia, MTC and Cell One, to allow them to embrace global trends in a converging world,” he said.The introduction of Switch seems to have pulled the carpet from underneath PowerCom, as the second mobile licence holder was expected to launch its product by December last year, but consumers are still waiting to see what the company will offer.PowerCom chief Mac Allman has since said that his company would enter the market with a quality product during the first quarter of this year.Stork said the policy brief aimed at providing facts on discussions taking place between policymakers and various stakeholders concerning the regulatory issues reading Switch’s launch. “The whole picture needs to be considered when making policy decisions.The telecom sector is too important for the development of Namibia,” he said.Switch does not use Global System for Mobile Communications (GSM) but is rolled out on Telecom’s fixed-wireless service on the Code Division Multiple Access (CDMA) platform, which refers to mobile technology that does not allow roaming between cellphones.As a result of the telecom industry dispute, Cabinet intervened and a meeting chaired by Prime Minister Nahas Angula late last year appointed a technical committee to look into the legality of the Switch service.The committee was expected to hold its first meeting this month.