Telecom needs N$2 billion in kitty to finance business plan

State-owned Telecom Namibia (TN) needs about N$2 billion to finance its business plan, which will be rolled out in the next five years.

The company’s chief executive officer (CEO), Stanley Shanapinda, this week told Desert Radio’s ‘Talking Business’ it would be rolling out the business plan in the next five years, hoping to turn the fortunes of the company around and give it a competitive edge.

Shanapinda said the company is also setting its eyes on listing on the Namibian Stock Exchange (NSX) in the next few years to raise the much-needed capital to broaden its revenue collection and put the company on a firm financial footing.

“After the success of MTC’s listing on the NSX, our ultimate goal is to go the same route in the next few years. I hope I will live to see that listing,” he said.

“So far we are keeping our options open, and we will need about N$400 million to roll out the initial plan. We are looking at building at least about 700 base stations countrywide. We are currently at above 300 base stations, and our target is that magic 700,” Shanapinda said.

He said TN has been revamping its network coverage in areas which have been experiencing challenges.

“I would say we have been focusing on doing the basics right, and so far we have revamped our coverage in some of the areas we are struggling in.

“This process has been going well and we seem to be getting somewhere,” he said.

Shanapinda said the company has been doing reasonably well in financing its operations.

“As a company we are not directly funded by taxpayers’ money. We actually offer the government a decent service and we invoice them and raise our money from there.

“I would like to plead with all our customers to be patient as we roll out our plan. We will get there,” he said.

ELUSIVE 5G DREAM

Shanapinda said Namibia is still lagging behind in activating fifth-generation technology compared to other countries.
He said there is a need to expedite the process and catch up with the rest of the world.

“On the 5G roll-out I would say we are not moving in tandem with other countries. We were making quite some progress, and then Covid-19 hit, and that sort of slowed down our progress in this regard.

“My belief is that at the moment 2G will stay for quite some time, primarily for most Namibians in remote areas.

“It is what is working for now, because in general most Namibians have access to generic cellphone services and can only access their calls and short messages,” he said.

Shanapinda reiterated the need for infrastructure sharing in Namibia.

“It has been tried and tested as a best regulatory practice for a country like ours and promotes growth. However, the challenge has been that some are investing in it, while others are not.

“It is like one person builds their house and they are expected to share it with everyone, but sometimes they just cannot do it because they do not have space in the house,” he said.