In 2019, MTN entered the Namibian telecom market. So far, its network coverage is limited to just a few major cities. The company, which aims to become the market leader, wants to rely on rural areas to rapidly expand its subscriber base.
The mobile operator MTN Namibia and the Canadian telecom infrastructure provider NuRAN Wireless finalized, Thursday, April 14, the agreement signed in February for the deployment of a minimum of 150 telecom sites (2G, 4G and 2G/4G combined). The 10-year agreement aims to provide mobile connectivity solutions through NuRAN’s Network-as-a-Service (NaaS) model, to expand MTN’s network presence in areas rural and suburban areas of Namibia.
The deal is estimated to represent approximately $60 million in revenue over the life of the contract, assuming all 150 sites are completed. Under the terms of the agreement, the number of sites may be increased and will fluctuate as the project progresses. This will depend on factors such as penetration rate, average revenue per user (ARPU) and network fees which will be refined.
“ We continue to make progress towards our goal of 10,000 contracted sites and adding this significant revenue to our projections will reinforce growing core value and help solidify NuRAN as the leading provider of mobile connectivity for rural and remote areas in Africa and ultimately the world ,” said Francis Letourneau, President and CEO of NuRAN Wireless Inc.
For MTN Namibia, this agreement is of strategic importance, as it meets the company’s extension needs. Last arrived on the Namibian telecom market in 2019, its services are available in Windhoek, Swakopmund, Walvis Bay, Ondangwa, Rehoboth, Oshakati, Okahandja and Otjiwarongo. The company wants to rely on rural and suburban areas still poorly covered by telecom networks to rapidly increase its subscriber base and face up to competition. Currently, the market is dominated by two public companies, Telecom Namibia Limited and Mobile Telecommunications Limited (MTC).
At the signing of the Memorandum of Understanding in February, Elia Tsouros, Managing Director of MTN Namibia said: “This is the start of an even greater deployment of infrastructure in the country, offering communication services without precedent in Namibia. These projects will also create opportunities for local small businesses to partner with MTN as we continue to expand our footprint .”