Namibia's second mobile telecommunications company, Cell One, will invest over $139 million (NA$1 billion) during the next 18 months to build and roll-out its network. This is according to newly-appointed CEO Lars-Christian Iuel.
The Namibian Communications Commission awarded the second GSM operator licence to telecommunications company Powercom in August. The company launched operations in the capital, Windhoek, last month, under the brand name Cell One, explains Iuel.
It is rolling out operations in the north of the country and should be operational by the end of the month. Coastal areas are expected to be covered by the second quarter of 2007.
The mobile telecoms company aims to reach all of the Namibian population by the end of 2007, physically covering 80%-90% of the country, says Iuel. "Cell One hopes to capture 50% of the market within five years."
Namibia is a vast country, with a relatively small, yet concentrated population, explains Iuel. "Reaching our targets within a short period of time is a realistic venture," he says.
The company had an understated launch, explains Iuel. "We are focusing on building up our subscriber base by fine-tuning our network quality and capabilities before we start building on subscriber numbers."
Cell One is rolling out a new network and not taking over old technology, he says. "This gives the company vast scope in expanding the network at a speedy rate, with the flexibility to keep abreast with any new technological advancements."
Increasing mobile penetration
The lack of services in the telecoms market is affecting the extent to which business people can contribute, he says. Cell One will provide technological advancements in the Namibian market, catering for the corporate, public and SME sector, he says.
Through better technological choice, Namibians have a chance to spur economic development in the market, he notes.
"Through more competition in the market, we believe Namibia could reach a mobile penetration rate on par with SA, which currently stands at 70%." Namibia's mobile penetration rate is fairly low at around 30%, explains Iuel.
Services available to customers include voice, SMS, interconnection with MTC and Telecom Namibia, international voice and voicemail, according to the Cell One Web site. The company charges on a per-second billing rate, as well as a flat rate for all calls, regardless of the network or time of call.
Iuel was appointed as CEO of Cell One last month, replacing Mac Allman. He joins the company after working 10 years in top management with Norwegian telecom operator Telenor.
Telenor owns 39% of Powercom.
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