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Home Technology

Namibia’s data revenue slips to N$821m as free offers erode growth

by editor
September 16, 2025
in Technology
59
0

The Communications Regulatory Authority of Namibia (CRAN) said data revenue reached N$821 million in the second quarter of 2025, down from N$831 million in the first quarter, despite an 8% increase in consumption.

CRAN reported that revenue slipped by 1.2%, settling around the N$800 million level first achieved in late 2024, following earlier quarters that had averaged N$700 million.

The regulator attributed the decline to operators’ free data promotions, which undercut income growth.

CRAN stated that while data usage continues to expand, the revenue trend highlights competitive pressures in Namibia’s telecommunications market.

“The gap between rising consumption and falling revenue demonstrates the effect of promotional offers. Operators are driving usage through free or discounted data, which temporarily supports engagement but dampens revenue growth,” the authority noted.

Voice revenue fell by 6% to N$153 million, while SMS revenue contracted by 14% to N$30 million.

“The revenue decline underlines a shift in market dynamics and the growing reliance on data-centric services,” CRAN said.

According to the regulator, social media platforms accounted for 68% of MTC’s total data usage in Q2, down 3% from the previous quarter.

TikTok, Facebook and WhatsApp each represented 17% of total usage, with Facebook showing a 2% decline while the other platforms held steady.

CRAN said this pattern reflects stable preferences but also hints at gradual diversification in user behaviour.

“Even as TikTok and WhatsApp hold their shares, the slight dip in Facebook usage suggests a subtle reshaping of social media habits. However, social media overall remains the largest driver of data consumption, underscoring its central role in Namibia’s telecommunications market,” it said.

CRAN further noted that total mobile outgoing minutes increased by 7% in Q2, reversing a 25% fall in the previous quarter. Telecom Namibia recorded the strongest growth at 11%, while MTC rose by 7% and retained its dominance, with 97% of outgoing calls terminating on its network.

“Voice services showed a short-term rebound, but the long-term trend still points toward data as the primary growth area. Operators will need to adjust strategies to balance traditional service stability with expanding data demands,” CRAN said.

The regulator added that SMS volumes declined by 3%, continuing a downward trend, while fixed-line outgoing minutes dropped 6% after earlier growth.

International outgoing minutes rose 3%, with around 35% of all outgoing calls remaining on-net, showing little change from previous quarters. CRAN said these shifts confirm a sustained move toward data-centric communication over legacy services.

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