MTC NAMIBIA: Connecting a Nation

Leading Namibian communications business, MTC Namibia, is showing the competition, and other operators around sub-Saharan Africa, how to maintain business in extraordinarily tough macro-economic conditions.

In a relatively small country, with a relatively small population, against a backdrop of high inflation, high interest rates, global economic uncertainty, and the lingering Covid-19 impact, MTC Namibia posted results for the 2023 financial year showing growth in existing and new revenue, increase in EBITDA, improved profits, and increased capital expenditure to ensure ongoing future growth.

MTC Namibia was established in 1995 and was the only cellular provider in the country. Ownership was split between the Namibian government and two Swedish shareholders, Telia and Swedfund. The company grew quickly, showing a strong ambition for growth and an innovative nature, alongside the global digital revolution. By 2004, the Swedish shareholders sold to Namibia Post Telecom Holdings (NPTH), bringing full control back to Windhoek. In 2006, Portugal Telecom acquired a 34% stake and since then the company has boomed. Initially focused on cellular operations for mobile connectivity, the service portfolio has expanded dramatically to include fixed-line, broadband, ecommerce, internet, mobile applications, cloud services, and much more. By 2020, MTC was the most admired brand in the country and became laser focused on its mission to provide 100% coverage across Namibia, even in remote and rural regions, through delivery of innovative digital solutions. Today, MTC’s mobile network covers 97% of Namibia’s population and 87.4% of Namibians have access to mobile broadband.

The local economy grew at 4.6% in 2022 but slowed to just under 3% in 2023. Growth potential has been hampered by numerous factors, but delivery for clients – whether individual in the Ohangwena region, or multinational business in Windhoek’s Southern Industrial Area – is the priority at MTC. Chairperson Theofelus Mberirua made this clear, saying: “High inflation and rising interest rates increased the costs of essential items, further eroding consumers’ disposable income and compounding the hardship experienced by the most vulnerable in our society. Impacted by cost inflation and intense competition, MTC maintained its empathy for customers by keeping prices constant and focusing instead on new value-adding products, services, and solutions.”

FASTEST OPERATORS

Displaying the company’s desire to continue rolling out for clients, in May 2023 MTC Namibia was named as the Fastest Mobile Network Operator in the country by global speed test company Ookla®.

Comparing a major data sample from across the country, Ookla® found MTC Namibia to be the fastest provider for mobile and fixed network speed across a half year period. With the highest download speeds of 73.96mbps and upload speeds of 53.67mbps in Windhoek during the period under review, the team was happy that the strategy is working.

“Our aspiration as MTC Namibia,” said MD Licky Erastus, “is to ensure that every person across Namibia has access and enjoys the benefits of a modern connected world and therefore we continue to invest in our network with the latest technologies to ensure that we provide these services to our customers at a quality experience, MTC Namibia since 2017 has invested N$1.2 billion with the hope to expand its geographical network coverage to at least 90% countrywide.”

With 1014 network towers, 1187km of fibre, and a large data hub in Windhoek (and further investment planned for 2024), the gap between MTC Namibia and competitors looks set to widen.

“This award amplifies the ethos of MTC and speaks to our route to creating sustainable value for all our stakeholders through innovative digital solutions and a high-performance culture,” furthered Chief Technical and Information Officer, Monica Nehemia. “If anything, it only says that we are on the right path and our work here continues to be recognised. We are dedicated to ensuring that our network is constantly meeting the expectations of our customers, to provide them with an exceptional experience when they choose MTC as their service provider.

“Our network is designed to deliver unparalleled speed and reliability. Whether you’re streaming or browsing, you can expect fast speeds and crystal-clear connections. We’re proud to offer this service to our customers and are confident that it will meet or exceed their expectations,” she said.

PARTNERSHIP POWER

To deliver beyond then normal, MTC Namibia must embrace strong, mutually-beneficial partnerships. Even with around 850 employees, delivery of modern, word-class standards requires outside input. Whether it’s technology, legal, data, infrastructure, thought-leadership, marketing, or any other area of expertise, MTC Namibia boasts a robust supply chain and a partnership network that reflects its own vision.

In early 2023, this network was expanded further as the company partnered with Ondangwa Town Council in the country’s north. The working arrangement sees both parties collaborating on the potential for smart city technology to help advance the area. Utilising MTC technology could help Ondangwa to embrace sustainable development and become increasingly digital.

“We are extremely happy that Ondangwa Town Council have taken the time to engage us, and we stand ready to listen and where possible put synergies in place aimed towards collaborative efforts to reach some of its goals, there is definitely areas of interest and interrogation between our two institutions for further engagement,” said Erastus, adding that all organisations require effective partnership if they are to achieve their vision. Currently, the country is busy working towards its Vision 2030, which aims for an industrialised nation, based on peace, with strong HR capabilities.

In 2020, MTC Namibia partnered with CSG to assist with technology transformation. An overhaul of the customer journey was the goal, and CSG delivered innovative upgrades to the experience including customer management, billing, product catalogue, order management, inventory, resource management, enterprise service bus (ESB), activation, roaming and document management. Importantly, MTC now has the ability to respond to queries quicker, deliver services faster, and monetise activations more efficiently.

However, business in Namibia is not easy. The company has faced micro-economic challenges, some that have been extremely damaging from an infrastructural technology point of view. The leadership team has framed the problems around destruction of company property as part of a wider issue with lacking economic opportunity in some areas, and is taking steps to protect infrastructure in the future.

In November, vandalism to a comms mast in the Omusati Kunene region was lamented by Communications Manager, John Ekongo.

“Connectivity is one of the key drivers of economic activities, and when infrastructure is wickedly vandalised, and equipment is stolen, it disrupts economic activities. On this specific crime incident, the perpetrators threw rocks/bricks at elevated solar panels, damaging them and inherently leaving the site in short supply of power. We are now forced to go back and re-invest in replacing the damaged sites, causing a delay in our drive to put up new sites in underserved areas.”

He added: “Sites erected in areas where there is no power supply are running strictly on deep cycle batteries and solar panels, and stealing those leave communities unable to make calls to contact the police or ambulance in cases of emergency. We are therefore advising, sternly, that whoever is going to be found guilty of this will face the full wrath of the law.” Further protection of assets is now being implemented, and various authorities have been engaged to ensure technology is protected. The company is also keenly driving an educational campaign to ensure the public is aware of the importance of the digital economy in modern life, and the opportunities it can offer.

MARKET LEADING OPTIMISM

Namibia is home to a young population, with an average age of 22, and various industries are finding Namibia to be a strong base because of political stability and transparent regulations. Combined with the natural beauty and unrivalled open spaces, the country is home to endless opportunity for business.

With MTC Namibia backing communications, those who invest in taking advantage of the opportunity will benefit. The company is ambitious and forward-thinking, helping the country to grow.

“MTC remained resilient in 2023, responding to customer demand for quality service and product innovation, and continuing to extend and improve telecommunications to urban and rural communities throughout Namibia,” said Erastus.

He highlights obvious growth with 4G and 5G to come soon, as well as continued digital transformation throughout the business as key strategies going forward.

“Our investments in the expansion and upgrade of MTC’s existing network will maintain service quality and availability to meet the growing demand for digital services. In parallel, we are implementing new systems and emerging technologies to improve the speed and cost efficiency of our operations. In line with our commitment to remain at the forefront of technology we continue to invest in fibre infrastructure and equipment to strengthen our self-sufficiency and prepare our network for the roll-out of 5G technology. Our acquisition of premium spectrum in August 2023 will further enhance our digital transformation by enabling new services for enterprises and consumers.

“We successfully expanded our existing network coverage to maintain quality and availability of service as customer demand for data increased,” he added. “Simultaneously, we invested in emerging technologies to improve the speed and cost efficiency of our products and services. Our network grew to 1014 active sites, 70% of which are 4G capable and account for 50% of mobile data traffic… During 2023, we upgraded 97 rural sites, 67 with refarmed spectrum to enable 4G/LTE technology. Our ongoing fibre deployments throughout Namibia supplement our existing and future network capacity requirements.”

Of course, the company is not blind to the problem that plague all business. Erastus added that MTC Namibia was expecting continued high inflation, currency fluctuation, and reduce market growth through 2024.

“Against this backdrop,” he continued, “MTC remains committed to its strategy to ensure sustainable growth and adaptability. To mitigate current economic impacts on our financial performance and retain customers, we will continue to optimise costs, improve operational efficiency and enhance customer service. Our revenue growth opportunities lie in further diversification of our service offerings. Underpinning these opportunities are our investments to enhance connectivity and network quality, expand our digital services and financial solutions, strengthen our strategic partnerships and make MTC fit for purpose for the future.”

But thanks to robust processes, a culture of excellence, secure financial decision-making, and a market willing to embrace a digital future, MTC Namibia remains the industry leader. Its market share is estimated at 84%, covering 98% of the population. When tackling the modern challenges in the economy, this is the perfect position to be in. Now, the company’s future is well and truly in its own hands.