CRAN unveils 2023 ICT sector report
The report covers financial stability, pricing dynamics, competition and key trends shaping the sector.
The Communications Regulatory Authority of Namibia (CRAN) released its 2023 ICT Sector Market Report, providing a comprehensive overview of Namibia’s telecommunications and broadcasting sectors.The ICT sector saw an increase in asset values due to significant investments, reflecting confidence in its future, despite stagnant revenues and profits. From 2018 to 2023, the telecommunications sector experienced 17% revenue growth. State-owned licensees control 82% of the sector’s assets and 80% of the revenue, while the private sector’s revenue share grew from 16% to 20%. In 2023, the private sector contributed 37% of new investments in property, plant and equipment.
Broadband development is transitioning towards fibre-based solutions, with Fibre-to-the-Home (FTTH) adoption rising to 27% of fixed broadband users by the end of 2023, more than double the 2018 share. Despite a 6% decrease in total active SIM cards, the share of mobile broadband SIM cards grew from 61% to 67% between 2018 and 2023.
Data revenue has increased significantly, now representing 70% of total mobile service revenue, up from 46% in 2018. Mobile data has emerged as the leading driver of data revenue, accounting for 76% of total data revenue.
Additionally, mobile voice and SMS revenues continue to decline, while mobile data usage and outgoing mobile minutes have surged by 60%. Traditional landline services and SMS are being replaced by Over-the-Top (OTT) applications like WhatsApp.
Broadcast services
The 2023 Namibian Census indicates that 45% of the population relies on radio as their main source of information, compared to 36% who prefer television. However, in urban areas, this trend reverses, with 55% of residents favouring television, although radio still retains a significant presence at 49%. In rural regions, the reliance on radio is even more pronounced, with 41% of households turning to it over television, which stands at just 16%.
Over the past four years, the Namibia Broadcasting Corporation (NBC) has faced a 23% decline in overall revenue, impacted by downturns in all major revenue streams, including TV licence fees, advertising income, rental revenue, and other miscellaneous sources.
While NBC generates nearly 50% of its revenue from advertising, MultiChoice has also experienced a decline in overall revenues during the same period; however, MultiChoice stands out as it achieved a notable 32% increase in profitability.
Namibia’s telecommunications sector has improved in affordability, ranking 8th in Africa for 1GB monthly usage costs. However, the country’s internet speed ranking has declined, indicating a need for infrastructure upgrades. The broadcasting sector remains small, with radio still being the primary medium for information.
The full report is available at www.cran.na.