Pay-tv subscriptions experienced an 11% decline in the fourth quarter of 2024, likely due to recent hikes in subscription fees and intensified competition from streaming services such as Netflix.
This was said by the Communications Regulatory Authority of Namibia (CRAN).
Despite this drop in subscriptions, the broadcasting sector’s overall revenue remained stable, bolstered by a notable rise in advertising revenue.
This stability can be attributed to other key revenue streams remaining steady. In addition, the proportion of advertising revenue within total revenue increased by 2%, reaching 11%, up from the consistent 9% observed in earlier quarters.
Meanwhile the biggest loser in the communication sector was postal services.
“There was a marked decline in postal service usage, indicative of changing consumer preferences and the increasing reliance on digital communication platforms like email,” said Mr. Mufaro Nesongano, CRAN’s Communication and Consumer Relations manager.
“Postbox usage decreased by 35%, resulting in an overall occupancy rate of just 30%. Likewise, private bag usage saw a decline of 37%.
“This trend underscores the persistent challenges traditional postal services encounter in adapting to the evolving demands of the market.”
The Communications Regulatory Authority of Namibia (CRAN) published its Quarterly Statistics Bulletin for the period from 1 October to 31 December 2024.
This report provides an in-depth analysis of key metrics in the telecommunications market, including subscriber numbers, traffic, revenue, costs, and investments, alongside data from the broadcasting and postal sectors.
Key highlights include statistics on Subscriber Identity Module (SIM) usage for internet access, fixed internet subscriptions, mobile outgoing minutes, Information and Communication Technology (ICT) revenue, pay-tv subscriptions, and postal box usage.
Nesongano stated that the total number of active SIM cards increased by 3%, mainly due to slight growth in the prepaid sector.
However, despite this overall increase, mobile broadband usage via mobile phones declined by 3%, resulting in a decrease in the percentage of SIM cards utilised for internet access from 64% to 60%.
Furthermore, mobile broadband usage through dongles and routers experienced a significant drop of 17% during the same timeframe, suggesting a gradual decline in the reliance on these connectivity devices.
Fixed internet subscriptions increased by 5%, largely due to a more than twofold surge in Satellite/VSAT subscriptions following the entry of Satelio Telecommunications, which recently received a telecommunications service licence.
Notably, Satelio broadcasting subscribers are now able to access broadcasting services through the same service provider, contributing to this significant increase.
Additionally, Fiber-to-the-x (FTTx) subscriptions and Voice over Internet Protocol (VoIP) subscriptions each experienced a 9% growth during the same period. This indicates the consumers’ need for faster Internet connections.
Mr. Nesongano noted that “total mobile outgoing minutes increased by 4%, a deceleration compared to the 8% increase observed in the previous quarter.
Meanwhile, SMS volumes decreased by 6%, marking a reversal from the previous upward trend.
“In contrast, mobile data consumption surged by 9%, indicating a shift among consumers towards data-driven communication instead of traditional SMS,” Nesongano said.
He also said that ICT revenue increased by 6%, continuing its growth trajectory.
“Out of the N$1.6 billion generated by licensees, 70% was designated to operating expenses.
“Meanwhile, investments in software and network upgrades within the telecommunications sector amounted to N$122 million, reflecting a significant 77% decrease compared to the prior quarter.”
In the photo: Mr. Mufaro Nesongano, Executive for Communication and Consumer Relations at CRAN.
