Namibia’s telecommunications infrastructure is currently undergoing amazing transformation. Andrew Pelis learns exactly why Telecom Namibia has been recognised for the impact its work has had on the creation of a vibrant national business environment.
The telecommunications industry has been through seemingly endless changes for a decade or more now. As technological advances have been introduced to the market, these have improved not only our everyday lifestyles but also the way business is conducted.
With that in mind, it is little wonder that in March the announcement was made that Telecom Namibia’s well-established role and continuing investment in Namibia’s economic growth and development had been emphatically recognised once again at the annual PMR.africa Awards in Windhoek.
The national telecommunications operator (which was commercialised in August 1992 having been previously wholly owned by the government of Namibia), was awarded the Golden Arrow Award in the Telecommunications sector. Single companies and institutions in different business sectors were rated on their contribution to the economic growth and development of the country.
“The commitment of Telecom Namibia to economic growth and development has been strengthened and a strong common platform is being set up to invest in a new generation of ICT products and services required by a knowledge-based economy,” commented senior manager for Corporate Communications and Public Relations Oiva Angula.
Today, Windhoek-based Telecom Namibia runs the largest digital telecommunications network in Namibia and is a leading supplier of voice, text, data and video solutions. The company serves more than 145,360 customers, with a workforce of 1,134 employees and annual revenues in excess of N$1 billion.
Telecom Namibia is currently embarking on an ambitious programme to update Africa’s telecommunications infrastructure. Part of the process involves installing fibre optic lines into Namibia which will enable faster data transfer and clearer telecoms connections. “This will have a positive impact on bandwidth speed and capacity,” states Frans Ndoroma, managing director of Telecom Namibia. “The direct benefits are affordable bandwidth costs, and access to the rest of the world (connectivity). The indirect benefits are foreign direct investment, business opportunities for online offerings, hosting services and access to the global labour market,” he adds.
All of this will result in the company being less dependent on transit countries and allow better service levels. Of equal importance, the initiative will drive down the cost of international bandwidth in Namibia and present regional business opportunities.
Telecom Namibia’s strategic plans fall nicely in line with those of Namibia’s government, which has a policy to accelerate the growth of information and communication technology in the country. In February, the Ministry of Information and Communication Technology (MICT) launched a five-year strategic plan founded on four key pillars, or strategic themes: ICT development growth in the country; the provision of information and media access to government; ICT service delivery by the ministry; and the aim for sound administration and good governance. It is hoped that the plans will bring technology to poorer rural areas of Namibia, which in turn will stimulate better communications and education.
The company is now in a position to provide both fixed and mobile services to its customers, thanks to investments in ADSL, CDMA, WiMAX and IP/MPLS infrastructure. This is in line with the company’s strategy of convergence.
Telecom Namibia’s current programme very much reflects its activities over the past five years—a period that has seen the company invest around N$1.04 billion in a network expansion and modernisation programme. The spending has created an advanced IP-based networking infrastructure for the country which has itself generated significant opportunity to drive IP networking for both local and foreign network operators to some of the most exciting and dynamic but so far under-served markets inside and outside Namibia. This, of course, is one of the key reasons why Telecom Namibia won its award.
“The next generation broadband networks being created today are the key to keeping Namibia competitive in SADC and the global economy,” comments Angula. “This would make it even easier for foreign companies seeking to establish or expand their operations in Africa to obtain IP-based and mobility services and applications from Telecom Namibia. These include emerging technologies such as tele-presence, cloud computing and hosted services.”
Angula adds that the role of Telecom Namibia in the broader economic development of the country is receiving increased priority. Preferential procurement is one area where the company is making serious efforts to drive the social and economic transformation of Namibian society—and this ties in well with its Black Economic Empowerment progress. “It is the company’s objective to increase spending on BEE initiatives in the years ahead, in order to create jobs for Namibians in the SME sector,” Angula explains. The awarding of contracts to local BEE companies is very much designed to increase the number of sustainable black-owned companies—Telecom Namibia has invested significantly (to the tune of N$2.13 billion) in BEE over the last five years.
From a business perspective, access to telecommunications is critical in the development of all aspects of Namibia’s economy and impacts on key areas such as manufacturing, banking, education, agriculture and government. “Our future aim is to enhance our national footprint, supporting the tourism and agricultural sector in rural areas and keeping up with the demand for bandwidth, speed and convergence,” explains Ndoroma. “The West Africa Cable System (WACS) will be operational towards the end of 2011.”
Since gaining its independence 18 years ago, Telecom Namibia has grown substantially, especially through its voice solutions; however, there is now a strong push to become the market leader throughout the whole information and communications technology (ICT) value chain. “We have adopted a new strategic blueprint that will consolidate the company as the major ICT player in Namibia, not just offering telephone to its customers but the whole value chain,” Ndoroma reveals. “The diversification challenge is to keep focused and transparent business cases in order not to cross-subsidise services. These often require setting up strategic partnerships.”
And the network of partnerships are crucial as the continent receives continued infrastructure upgrades such as fibre optics, putting extra onus on the systems on the ground that have to be able to handle the increased flow of information once the data hits land. Indeed, Ndoroma suggests that Telecom Namibia may well target opportunities within its landlocked neighbours like Botswana and Zambia, depending upon requirements and viability.
This process of updating the legacy systems has to be done early and accurately to ensure the foundations are correctly in place before the fibre optics are laid. The process has not been helped by incidents of vandalism which saw some fibre optic cables cut and a need for costly repair work; but the company remains committed to its long-term goals. “Telecom Namibia has invested over N$1 billion into updating the legacy network systems, creating a strong foundation for the infrastructure to develop as the company grows and develops,” Ndoroma says. “This will help us to diversify by eliminating the dependency on voice only and will allow us to add extra services along the ICT value chain.”
However, national infrastructure is not just about good telecommunications—to help develop Namibia requires corporate commitment, an area Telecom Namibia is very proactive in, as Ndoroma explains. “Sponsorship for the company is about building relationships by connecting with consumers, building brand awareness and extending our business reach.
“Our sponsorship strategy allows us to play an integral role supporting various community initiatives and we focus our sponsorship participation in the areas of education, empowerment of women, sports, health, disaster relief, charity and poverty alleviation, and the provision of telecommunications access to poor communities.”
An example of this approach came in April this year, when the company, in partnership with Dimension Data, announced the introduction of the unique e-Thena HIV and Aids Programme from the latter’s partner, Self Empowerment International (SEI). This software package provides essential HIV and Aids and antiretroviral education for the employees of corporations, government departments and organisations associated with the fight against HIV and Aids.
For now, Telecom Namibia’s operations are focused on keeping up to speed with bandwidth and broadband developments and securing independent access to international bandwidth. The company is also currently setting up a new billing platform and other operation and business support systems. Customer service is of paramount importance and includes residential support 24 hours a day, every day of the year.
Ndoroma believes that the company’s annually-reviewed strategies deliver a sustainable competitive edge, and sees these as a highlight of his time in charge at Telecom Namibia. “We operate extensive staff training and business management that delivers improved performance and we have invested in and developed technical capabilities to deliver ICT products and services. We have established excellent relationships with our customers and owners and we have a committed workforce that is committed to making it happen,” he summarises.
“Our plans over the next three years are to grow the company through new products and services, including wholesale, as well as exporting our wholesale model to neighbouring countries. We also want to protect our brand by focusing on service delivery and quality and to improve cost efficiency.
“Above and beyond that, we want to position ourselves in the market as a leading ICT service provider and become a strong regional player—to achieve this we must remain customer-driver and become a lean ICT business. This in turn will create shareholder value.”
With its plans in tandem with government feeling and national recognition, Telecom Namibia is very much on target to achieve its goals and bring the country firmly up to date with the finest 21st century communications. www.telecom.na
