The country’s mobile data revenue soared from N$1.01 billion in 2018 to N$1.7 billion in 2023, marking a 71% increase over five years, according to the Communications Regulatory Authority of Namibia (CRAN).
Data services now contribute 70% of total mobile service revenue, up from 46% in 2018, as voice and SMS revenues continue to decline amid growing consumer demand for internet connectivity and digital applications.
“Revenues from mobile voice and SMS services continue to decline, while data revenue continues to grow, leading to an overall increase in service revenues. The share of total mobile service revenue derived from data increased significantly, rising by 24%, from 46% in 2018 to 70% in 2023,” CRAN said in its ICT Market Sector Report for 2023.
The Authority says that this shift highlights the growing importance of data services as consumer demand for Internet connectivity and digital applications expands.
Overall, mobile service revenues increased by 11% over the period, though when measured in USD, this growth was more modest, registering a 2% increase.
In 2023, overall data revenue has demonstrated substantial growth, increasing by 53% over the past five years, largely due to increased mobile and fibre data consumption.
“Mobile data revenue dominated the data market, accounting for 76% of all data revenues, underscoring the growing reliance on mobile connectivity. Asymmetric Digital Subscriber Line (ADSL)’s share of total data revenue fell sharply, from 18% recorded in 2018 to 9%,” said CRAN.
Conversely, fibre to the home (FTTH) revenue doubled its share, rising from 5% in 2018 to 10% in 2023, driven by rising demand for faster, more reliable broadband solutions among households and businesses.
CRAN, Chief Executive Officer, Emilia Nghikembua, said the transformation of Namibia’s broadband landscape indicates a steady transition towards high-speed, fibre-based solutions as the market matures.
“The adoption of Fibre-to-the-Home has consistently increased, mirroring broader trends in the development of digital infrastructure. By the end of 2023, FTTH represented 27% of fixed broadband subscribers, more than doubling its share since 2018,” she said.
Meanwhile, the share of mobile broadband SIM cards rose from 61% in 2018 to 67% in 2023. Nonetheless, this represents a decline compared to 2022, primarily due to the overall reduction in active SIM cards.
Additionally, the total number of active SIM cards experienced a 6% decrease.
Nghikembua further expressed that outgoing mobile minutes surged by 60%, while SMS usage and traditional landline services saw a decline.
“These trends indicate a waning relevance of landlines for consumers and the gradual replacement of SMS by Over-The-Top (OTT) applications like WhatsApp and other messaging platforms,” she said.
This comes as the telecommunications sector in Namibia has made significant strides, particularly in affordability, with the country rising from 46th to 8th in the African affordability ranking for 1GB monthly usage between Q1 2022 and Q1 2023.
The CEO said that this positive change is attributed to lower retail prices following a public consultation on broadband prices by CRAN.
“4G coverage has also improved, reaching 88.4% of the population, and 69% of mobile SIM cards are used for Internet access. However, Namibia’s ranking for Internet speeds declined, indicating a need for infrastructure upgrades to enhance service quality,” she noted.
The sector noted an increase in asset values as a result of investments and, as such, a vote of confidence in the prospects of the ICT sector, despite the stagnant revenues and profits.
