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
Workshop defines standards, integration flows and middleware solutions Reform aims to improve data quality, ease workload, support...
Mauritius launches national AI strategy and ethical FAIR guidelines Plan targets infrastructure, skills, governance, and sector...
Uganda plans two satellites for security, monitoring and broadcasting Builds on 2022 PearlAfricaSat-1 launch with partners Move aligns with...
Algeria to boost fixed internet speeds nationwide from April 13 ADSL upgraded to 20 Mbps; fiber speeds rise to 100 Mbps Plan supports fiber...
Most Read
01

EBID aims to allocate nearly 41% of its commitments to environmentally and socially impactful projec...

EBID Charts Green Shift to Finance West Africa’s Growth
02

Flutterwave secures Nigerian banking license to offer credit and savings License enables direct d...

Flutterwave Secures Banking License in Nigeria, Joining Push by Fintechs Like Revolut, Wise
03

M-PESA evolves into major financial platform with 35 million users Telecoms, fintechs expan...

In Africa, Banks Face a New Rival: Telecom Operators
04

Algeria launches bid for two NGSO satellite telecom licenses Move aims to expand broadband ac...

Algeria Opens Satellite Market to Competition, Inviting Global Operators
05

Coca-Cola unit trains 260+ SMEs in Namibia business skills Program targets women, youth, disabled...

Over 260 Namibian SME Owners Trained as Sector Faces Mounting Losses
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.