Telecom

Namibia: CRAN reduces termination rates by 50%

Namibia: CRAN reduces termination rates by 50%
Tuesday, 13 September 2022 19:04

Namibia's incumbent telecom operator controls 90 percent of the national market, according to figures from the regulator. As a result, the state-owned company earns much more money than other operators for calls originating from other networks.

The Communications Regulatory Authority of Namibia (CRAN) recently announced the reduction of local mobile and fixed-line termination rates by 50 percent. With this measure, which will come into effect on October 1, the regulator wants to reduce the operational costs of Namibian telecommunications operators. The new termination rates will be NAD0.05  (0.0 034 USD)/minute, against NAD0.10  previously.

According to the regulator, this decision is supported by a study conducted in 2021 to determine the impact of lower termination rates on the telecommunications industry. The study found that "one of the largest cost components for operators (providing voice services) is that of interconnection.” 

Of the 2.9 million subscribers in Namibia, 90 percent are Mobile Telecommunications Company (MTC) subscribers, while the remaining 10 percent are subscribers of Telecom Namibia, Paratus Telecommunications Ltd., or MTN Business Namibia. This means that the other operators pay MTC more for calls made to its network than for calls made from MTC to other networks, as its network carries most of the outgoing traffic (calls and SMS).

Once implemented, this initiative will help 'other operators' reduce their operational costs and be more competitive. However, it does not mean that telecom rates are reduced for subscribers. Instead, the subscribers will indirectly benefit from increased competition, which will translate into enhanced services and diversified products in the market.  

CRAN is [...] investigating other possibilities to reduce voice call rates to give consumers relief over the medium-term, and a decision will be communicated in due course,” said Emilia Nghikembua, CRAN Chief executive officer.  

Isaac K. Kassouwi

On the same topic
Rwanda signed a memorandum of understanding with U.S. technology firm Oracle to launch a nationwide digital skills development initiative. Oracle will...
Eutelsat, Unconnected.org launch satellite community Wi-Fi in Tanzania Service targets underserved areas beyond terrestrial...
MTN Group has no official presence in the Democratic Republic of Congo, where the mobile market is dominated by Airtel, Orange, Vodacom and Africell. The...
Paratus launches 2,000 km Mombasa-Goma fiber link Corridor connects landlocked markets to submarine cables Project supports rising East...
Most Read
01

Deposits grow 2.7%, supporting lending recovery Average loan sizes small, credit risk persists ...

Togo Microfinance: Deposits and Loans Rise Simultaneously in Q3 2025
02

Oil majors expand offshore exploration from Senegal to Angola Gulf of Guinea accounts for about 1...

Gulf of Guinea regains appeal as a key exploration hub for oil majors
03

Rwanda, partners break ground on $2 billion Kigali Innovation City Smart city targets ...

Rwanda Mobilises Global, Local Finance for $2Bln Innovation City Targeting Africa’s Digital Economy
04

MTN is considering buying back telecom towers it sold years ago, signalling that control of infras...

MTN’s Talks to Buyout IHS: A Strategic Reversal That Could Reshape African Telecoms
05

The government is asking SOTEL and Airtel to amend a 2025 agreement The N’Djamena–Mberé route...

Chad Reopens Talks with Telecom Operators Over Strategic Fiber Link
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.