The Communications Regulatory Authority of Namibia (CRAN) has revoked the Spectrum Licences of UCOM Mobile Namibia (Pty) formerly MTN Business Namibia due to its failure to settle over N$19.3 million license fees arrears.
CRAN CEO, Emilia Nghikembua, said that UCOM Mobile Namibia had failed to honor a payment arrangement entered with the regulatory body and further failed to efficiently utilize the awarded spectrum, resulting in spectrum hoarding.
“The Communications Regulatory Authority of Namibia (CRAN) herewith informs stakeholders and consumers that it has canceled the Spectrum Licences awarded to UCOM Mobile Namibia (Pty) Ltd (formerly known as Mobile Telephone Networks Business Solutions Namibia (Pty) Ltd (MTN)), issued between November 2014 and April 2020,” she said.
This comes after unsuccessful mediation processes and the High Court granting a default judgment against UCOM Mobile Namibia (Pty) Ltd on November 16, 2023.
“The nonpayment of spectrum fees and hoarding of spectrum constitute a material breach of the license conditions and are classified as grounds for license cancellation. Notably, CRAN held extensive consultations with UCOM Mobile Namibia (Pty) Ltd to find a lasting solution to the compliance matters, over a period of time, but such engagements did not yield any corrective outcomes,” the CRAN CEO said.
UCOM Mobile has been given six months to facilitate the migration of its approximately 1,000 customers and to conduct an orderly wind-up of its operations.
“In consideration of the impact of this decision on consumers and UCOM Mobile Namibia (Pty) Ltd, CRAN has granted UCOM Mobile Namibia (Pty) Ltd a period of six (6) months until June 2024, to facilitate the migration of their (approximately 1,000) customers and to conduct an orderly wind-up of their operations. After this stipulated period, all services will be terminated,” CRAN said.
“The Authority remains committed to ensuring a viable telecommunications market that generates consumer benefits through the promotion of competition. This commitment will, amongst others, be executed through ensuring regulatory compliance to license conditions and operating parameters, which is the backbone of consumer protection.”
This comes after in 2022 South African multinational mobile telecommunications company MTN Group announced its disinvestment from Namibia and subsequently approved the transfer of shares to its local shareholder Profile Technologies (Pty) Ltd, with no impact on the license and its conditions.
The shareholders then rebranded to UCOM Mobile , without any impact on plans the business might have.
The MTN Group operated in the country for over 20 years through MTN Business Namibia, which was partly owned by Profile Investment Holdings after it acquired a 30% stake in a 2017 deal.
The MTN Group announced plans to launch a mobile service in Namibia five years ago, but the project failed to take off the ground until the company exited the country.
MTN Business Namibia at the time of the disinvestment mainly provided internet services to individual customers, financial institutions, and wholesale customers.
