Business Reporter

THE telecommunications sector has reported a rise in asset values attributable to investments, signaling confidence within the prospects of the ICT sector regardless of stagnant revenues and earnings.

Between 2018 and 2023, the telecommunications sector skilled a income progress of 17%.

This is in keeping with the ICT sector report launched by the Communications Regulatory Authority of Namibia (CRAN).

Emilia Nghikembua, Chief Executive Officer: “The state owns the licensees responsible for 82% of telecommunication assets and 80% of the sector’s revenue. The revenue share of the private sector has grown from 16% in 2018 to 20% in 2023. Encouragingly, 37% of additions to property, plant, and equipment (PPE) were undertaken by the private sector in 2023 compared to 63% by the public sector.”

The transformation of Namibia’s broadband panorama signifies a gradual transition towards high-speed, fiber-based options because the market matures. The adoption of Fibre-to-the-Home (FTTH) has constantly elevated, mirroring broader tendencies within the improvement of digital infrastructure. By the tip of 2023, FTTH represented 27% of fastened broadband subscribers, greater than doubling its share since 2018.

Additionally, the entire variety of lively SIM playing cards skilled a 6% lower. Meanwhile, the share of cell broadband SIM playing cards rose from 61% in 2018 to 67% in 2023. However, this represents a decline in comparison with 2022, primarily as a result of general discount in lively SIM playing cards.

While revenues from cell voice and SMS companies proceed to say no, knowledge income is on the rise, contributing to a internet enhance in general service revenues. The proportion of whole cell service income generated from knowledge has seen substantial progress, growing by 24%, from 46% in 2018 to 70% in 2023. This pattern underscores the rising significance of information companies as client demand for web connectivity and digital functions continues to increase.

One of Namibia’s largest gamers, MTC, reported income surging to N$3.23 billion, with N$540 million coming from knowledge companies.

Nghikembua additional defined: “Data revenue has experienced significant growth, rising by 53% over the past five years, primarily driven by increased consumption of mobile and fiber data. Mobile data revenue has emerged as the leader in the data market, representing 76% of total data revenues, highlighting the growing dependence on mobile connectivity.”

Moreover, outgoing cell minutes surged by a formidable 60%, whereas SMS utilization and conventional landline companies declined. These tendencies point out the waning relevance of landlines for shoppers and the gradual alternative of SMS by Over-The-Top (OTT) functions like WhatsApp and different messaging platforms.

The telecommunications sector in Namibia has made vital strides, notably in affordability, with the nation rising from forty sixth to eighth within the African affordability rating for 1GB of month-to-month utilization between Q1 2022 and Q1 2023. This constructive change is attributed to decrease retail costs following a public session on broadband costs by CRAN.

“4G coverage has also improved, reaching 88.4% of the population, and 69% of mobile SIM cards are used for Internet access. However, Namibia’s ranking for Internet speeds declined, indicating a need for infrastructure upgrades to enhance service quality. Meanwhile, the broadcasting sector remains small despite an increase in national advertisement revenues, with radio still being the primary source of information in the country,” concluded Nghikembua.“4G coverage has also improved, reaching 88.4% of the population, and 69% of mobile SIM cards are used for Internet access. However, Namibia’s ranking for Internet speeds declined, indicating a need for infrastructure upgrades to enhance service quality. Meanwhile, the broadcasting sector remains small despite an increase in national advertisement revenues, with radio still being the primary source of information in the country,” concluded Nghikembua.