The Communications Regulatory Authority of Namibia (CRAN) says it intends to utilise the Universal Access Service and Regulatory Levy to subsidise telecommunication services in remote areas.
CRAN CEO Emillia Nghikembua said this follows a successful conclusion to a nearly 12-year legal battle where some operators challenged the levy system.
Nghikembua expressed her satisfaction with the court’s decision, paving the way for improved connectivity in underserved regions.
The Universal Service Levy is a fee charged to all telecommunications service providers in Namibia by the Authority.
“The funds raised through this levy are used to subsidise the provision of telecommunication services in remote and underserved areas. By levying a fee on all operators, CRAN can ensure that rural and isolated communities have access to basic telecommunication services,” Nghikembua said.
“The Levy also helps to bridge the digital divide in Namibia. In a country where many people live in remote areas with limited infrastructure, access to telecommunication services is essential for economic development and social inclusion.”
Nghikembua made these remarks during a Public Hearing on the Draft Dominance Determination in terms of Section 78 of the Communications Act (No. 8 of 2009) and a Consultative Meeting with the telecommunications licensees.
“At the heart of this meeting is the issue of market dominance, a concept that has far-reaching implications for competition, innovation, and consumer choice. Section 78 of the Act empowers the Authority to make determinations on market dominance and act appropriately to promote competition and protect consumers,” Nghikembua said.
In that regard, she said it is essential for the Authority to intervene in such cases to level the playing field and ensure that all market participants have equal opportunities to compete and thrive.
“Moreover, competition in any market economy drives innovation, efficiency, and consumer welfare. When one player dominates the market, it can stifle competition, limit choices for consumers, and lead to higher prices and lower quality of service,” she reiterated.
The draft dominance determination aims to identify players in the telecommunications market who have significant market power.
Nghikembua described this as a complex and nuanced issue that requires careful analysis and consideration of all relevant factors.
