This is the conclusion of a study conducted by the Namibian Economic Policy Research Unit (Nepru) entitled “Switch to competition - Regulatory challenges for Namibia's telecommunication sector”.

Switch service debuted in November 2006. Competitors questioned its legality and the Namibian Communications Commission (NCC) threatened to revoke the frequency license it had issued to Telecom. The country's two mobile operators, Mobile Telecommunications Limited (MTC) and PowerCom (Cell One) accused Telecom of flouting regulations. The NCC entered into the dispute with Telecom over the legality of Switch after MTC and PowerCom pressured the NCC to limit the frequency of Switch, so that it does not operate as a mobile service. Switch uses Telecom's fixed-wireless CDMA platform.

Nepru's Senior Researcher Dr. Christoph Stork said that according to the Posts and Telecommunications Act of 1992, there was nothing wrong with Switch.

"Now that the first signs of competition are on the horizon, should we really try and prevent operators from choosing the most cost-effective technical solution to provide telephony?" Stork said.

Nepru's research confirmed that MTC's charges are high (especially compared to other service providers in the region), adding that the entry of PowerCom would not change things much, but with Switch in the mix, the situation has changed. Switch proved to be the cheapest compared to mobile contracts in Namibia, Botswana and South Africa.

Stork called for implementation of a new Telecommunications Act to bring about sector reform.

"The best way would be to issue service and technologically neutral licenses to all three operators, Telecom Namibia, MTC and Cell One, to allow them to embrace global trends in a converging world," he said.

PowerCom, the second mobile licensee, was expected to launch service by December 2006. PowerCom chief Mac Allman says that his company would enter the market during the first quarter of 2007.

Source: The Namibian - WDR/Intelecon Regulatory News