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Namibian telco profits from 3G HSDPA

By Vanessa Haarhoff, ITWeb African correspondent
Johannesburg, 26 Jan 2007

Telecommunications group MTC Namibia has seen profit growth since the inception of 3G high-speed downlink packet access (HSDPA) services in mid-December.

Albertus Aochamub, head of corporate services at MTC Namibia, attributes 15% of postpaid sales since mid-December to the introduction of 3G HSDPA.

The time to introduce the was right, says Aochamub. "Since the introduction of our GPRS and EDGE services a couple of years ago, the uptake has proven there was definite appetite for improved data speeds and capacity.

"In response to that obvious market demand, we opted to roll-out a 3G HSDPA ."

In a statement, MTC Namibia MD Jos'e Ferreira notes the uptake of GPRS and EDGE capabilities was actually most notable in less developed areas of Namibia, making the case for 3G services much clearer.

MTC Namibia launched this service in a market characterised by a large geographical area with a relatively small population. Namibia has a population density of 2.5 persons per square kilometre.

Competitive pricing

Aochamub notes the effective pricing strategies of the 3G HSDPA service have encouraged consumers to use the service. "The impact upon consumers has been strong."

The company's 3G HSDPA pricing offers data bundles with extras such as a PCMCIA card device for 40c per megabyte. Subscription rates for 500MB bundles, with an HP laptop and a PCMCIA card, cost R649 per month.

Competition is high, with the forthcoming inception of second mobile operator Powercom, in March, says Aochamub.

MTC Namibia is the fourth network in Africa to offer HSDPA services.

SA's MTN and Vodacom have rolled out 3G HSDPA capabilities and Celtel Nigeria started the service in late 2006. Mauritius offers a 3G network without the HSDPA component.

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