MTC Namibia has learned with a sense of trepidation of the decision taken by the Cabinet of the Republic of Namibia on Telecom Namibia's Switch product.
The decision reads, in part: "The Switch product be limited geographically per town or settlement area, with no roaming or handing over of calls between towns until the information and communication Bills are enacted."
Jose Ferreira, Managing Director of MTC, explains: "The decision does not address the fundamental objection not to allow roaming or handover between cells even if it is in the same town. Handing over between cells is the licensed domain of the two mobile operators in Namibia for which we have paid licence fees."
Secondly, the decision sends mixed messages to potential international investors in the Namibian telecommunications sector. Allowing Telecom Namibia to infringe on the licensed rights of mobile operators means there are now three operators in the market while it was clear that there would only be two when Portugal Telecom bought the 34% stake in MTC Namibia.
It jeopardises MTC's value and what Portugal Telecom paid for. This is clearly a breach of trust and confidence in the local market.
Share
MTC (Mobile Telecommunications Limited) was established in 1995 as a joint venture between Namibia Post and Telecommunications Holdings (NPTH), Telia and Swedfund. During May 2004, NPTH concluded a deal that saw it hold 100% of the shares in MTC by acquiring the 49% held by Telia Overseas AB and Swedfund International AB. NPTH is 100% owned by the Government of the Republic of Namibia. On 1 September 2006, the sale of 34% of MTC shares to a strategic/technical partner was concluded with Portugal Telecom which also holds the management contract.
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