Telecom urged to lower tariffs

TELECOM Namibia should consider cutting its tariffs in order to attract foreign and local investment, President Hifikepunye Pohamba advised the country’s sole fixed-line telephone service provider yesterday.

He made this strong plea during an extended visit to the premises of the parastatal, which has an operating turnover of N$1 billion annually and employs 1 300 people. Telecom Board Member Harold Pupkewitz said that information and telecommunication technology (ICT) was developing economies at a very fast rate and Namibia could attract more foreign direct investment if Telecom would slash its rather high tariffs.”Today ICT changes so fast, we must keep abreast and one can do business from anywhere in the world, but if ICT is too expensive (to use), investors will avoid Namibia,” Pupkewitz cautioned.President Pohamba asked Pupkewitz, who is also a member of the Presidential Economic Advisory Council (PEAC), to take the issue of possible tariff reductions to the Council.”The Council can then advise me if we should lower Telecom’s tariffs,” Pohamba told the board members and managers who were present.This would not only be confined to telephone charges, but also Internet and wireless connections.Telecom Boss Frans Ndoroma gave a presentation on the activities of the company, which has paid dividends of N$182,7 million to Government since its inception in 1992.Both Ndoroma and Board Chairman Titus Haimbili admitted that Telecom would have to adjust its operations, since conventional fixed-line customers were turning to mobile technology and wireless connectivity.”We are concentrating on this sector,” he added.Ndoroma pointed out, however, that Telecom was the provider of the “digital backbone” network for the whole country and to an extent for its mobile telecommunications competitors too.This required constant upgrading and N$2 billion in investments until 2010.Board Chairman Haimbili emphasised that the industry was eagerly awaiting the new ICT Bill, which is expected to be tabled in Parliament this year still.Pohamba lauded Telecom for its “good work” and the fact that it was one of few parastatals not requiring Government subsidies and bailouts.The Head of State was then taken on a tour of the various departments of the company and he was visibly impressed when shown the state-of-the-art wireless technologies at the Customer Centre on Independence Avenue by the Senior Manager for Product Research and Development, Armando Perny.Telecom Board Member Harold Pupkewitz said that information and telecommunication technology (ICT) was developing economies at a very fast rate and Namibia could attract more foreign direct investment if Telecom would slash its rather high tariffs.”Today ICT changes so fast, we must keep abreast and one can do business from anywhere in the world, but if ICT is too expensive (to use), investors will avoid Namibia,” Pupkewitz cautioned.President Pohamba asked Pupkewitz, who is also a member of the Presidential Economic Advisory Council (PEAC), to take the issue of possible tariff reductions to the Council.”The Council can then advise me if we should lower Telecom’s tariffs,” Pohamba told the board members and managers who were present.This would not only be confined to telephone charges, but also Internet and wireless connections.Telecom Boss Frans Ndoroma gave a presentation on the activities of the company, which has paid dividends of N$182,7 million to Government since its inception in 1992.Both Ndoroma and Board Chairman Titus Haimbili admitted that Telecom would have to adjust its operations, since conventional fixed-line customers were turning to mobile technology and wireless connectivity.”We are concentrating on this sector,” he added.Ndoroma pointed out, however, that Telecom was the provider of the “digital backbone” network for the whole country and to an extent for its mobile telecommunications competitors too.This required constant upgrading and N$2 billion in investments until 2010.Board Chairman Haimbili emphasised that the industry was eagerly awaiting the new ICT Bill, which is expected to be tabled in Parliament this year still.Pohamba lauded Telecom for its “good work” and the fact that it was one of few parastatals not requiring Government subsidies and bailouts.The Head of State was then taken on a tour of the various departments of the company and he was visibly impressed when shown the state-of-the-art wireless technologies at the Customer Centre on Independence Avenue by the Senior Manager for Product Research and Development, Armando Perny.