Industry Trend Analysis - Competition In The Hands Of New MVNOs - APR 2018

BMI View: As both mobile operators are owned by the Namibian government, the entrance of MVNOs is a welcomed development to provide some much needed competition. Given the saturated nature of the market, we believe MVNOs will focus on attracting subscribers from the established operators by offering differentiated services.

The Namibian government, through holding company Namibia Post and Telecommunications Holdings (NPTH), has increased its ownership in MTC by acquiring the remaining 34% stake from Luxembourg-based Samba, which is facing immediate liquidation in Europe and other markets, for more than NAD3bn (USD235mn). MTC and TN-Mobile, which is also fully owned by the government, have virtual monopolies over the mobile and wireline markets. While Namibia's telecoms market is relatively well developed, with a mobile penetration rate above 107% and with both mobile operators offering 4G services, government ownership has resulted in little service innovation and slow deployment of next-generation wireline broadband networks, which is further hindered by the country's low population density.

Namibia scores very poorly in terms of Industry Risks, receiving a score of 40, below the regional average of 50.4. The low score is due to the government's high level of involvement in the telecoms market, and not directly due to regulator CRAN's performance, which remains a proactive regulator that undertakes a variety of publications and consultations on the telecoms market.

Namibia Held Back By Government Involvement
Namibia vs SSA and Southern Africa Industry Risk Scores (Q218)
Note: Scores out of 100, with higher scores indicating lower risks. Source: BMI

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