Telecoms liberalisation ‘essential’

A SENIOR Namibian researcher has called on Government to seriously consider liberalising the telecommunications sector, saying competition would allow for improved service delivery.

Christoph Stork, of the Namibian Economic Policy and Research Unit (Nepru), says liberalisation of the telecommunication sector would allow more players to wrestle it out for market leadership, allowing for efficiency and more affordable prices to consumers. Further: “Liberalisation of the telecommunication sector is essential for Namibian people.To date monopolies, MTC and Telecom, are not in a hurry to reduce tariffs for instance.”By opening up the sector to other players, the industry will certainly undergo immense positive change that will stimulate economic growth.”However, industry sources, while echoing Stork’s sentiments, said the process was likely to take long as it was not a priority for Government at the moment.The Ministry of Information and Broadcasting is under pressure to announce the winner of the second mobile operating licence.The bid, tendered and closed months ago, is still lying on Government’s table.Investigations to date have shown that Government has not been under pressure to award the licence, as it has emerged that the issue had apparently been put on hold.But Stork said there was a need to put the necessary regulatory framework in place before rushing to open up the telecommunication sector.The process includes passing the Telecommunications Bill that will, among others, allow for the formation of a single body regulating the operations of industry players.”Liberalising Namibia’s telecommunication sector, establishing a single competent regulator for the converging telecommunications, broadcasting and Information Technology (IT) sector and actively managing the radio spectrum, will open new business opportunities and generate growth and employment,” explained the Nepru researcher.The need for a strong regulatory framework was deemed necessary to effectively monitor the work and conduct of industry players to rid the public of unfair competition and collusion.Stork dismissed a notion doing the rounds that liberalisation would benefit large corporates.Rather, he said, it entitled small players to operate telecommunication entities that could offer efficient services, especially in the rural communities.The outlying areas, he said, were the most affected as lack of adequate and access to telecommunication facilities was hampering development.In addition, poor families still found such services unaffordable.Despite boosting local investment, the liberalisation process was set to attract much-needed Foreign Direct Investment (FDI) thus bringing in foreign currency.Employment creation was yet another positive element coming in line with liberalisation.Interestingly, Stork expressed another perspective.”Access to information today is seen as a human right by many,” he said.”The clear link between effective regulation and competition on the one hand and access to information, economic growth and employment on the other, makes it imperative to act sooner rather than later,” the researcher added.Further: “Liberalisation of the telecommunication sector is essential for Namibian people.To date monopolies, MTC and Telecom, are not in a hurry to reduce tariffs for instance.”By opening up the sector to other players, the industry will certainly undergo immense positive change that will stimulate economic growth.”However, industry sources, while echoing Stork’s sentiments, said the process was likely to take long as it was not a priority for Government at the moment.The Ministry of Information and Broadcasting is under pressure to announce the winner of the second mobile operating licence.The bid, tendered and closed months ago, is still lying on Government’s table.Investigations to date have shown that Government has not been under pressure to award the licence, as it has emerged that the issue had apparently been put on hold.But Stork said there was a need to put the necessary regulatory framework in place before rushing to open up the telecommunication sector.The process includes passing the Telecommunications Bill that will, among others, allow for the formation of a single body regulating the operations of industry players.”Liberalising Namibia’s telecommunication sector, establishing a single competent regulator for the converging telecommunications, broadcasting and Information Technology (IT) sector and actively managing the radio spectrum, will open new business opportunities and generate growth and employment,” explained the Nepru researcher.The need for a strong regulatory framework was deemed necessary to effectively monitor the work and conduct of industry players to rid the public of unfair competition and collusion.Stork dismissed a notion doing the rounds that liberalisation would benefit large corporates.Rather, he said, it entitled small players to operate telecommunication entities that could offer efficient services, especially in the rural communities.The outlying areas, he said, were the most affected as lack of adequate and access to telecommunication facilities was hampering development.In addition, poor families still found such services unaffordable.Despite boosting local investment, the liberalisation process was set to attract much-needed Foreign Direct Investment (FDI) thus bringing in foreign currency.Employment creation was yet another positive element coming in line with liberalisation.Interestingly, Stork expressed another perspective.”Access to information today is seen as a human right by many,” he said.”The clear link between effective regulation and competition on the one hand and access to information, economic growth and employment on the other, makes it imperative to act sooner rather than later,” the researcher added.