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Telecom Namibia threatened with potential job cuts

Telecom Namibia threatened with potential job cuts

Telecom Namibia has opposed the proposal to revise its tariffs and reduce prices, according to Xinhua news agency, citing that reduced prices will have major implications on the national telecommunications utility’s operations.

Telecom Namibia’s Chief Commercial Officer, Calvin Muniswaswa said that the implementation of the proposed regulations may result in job loses if the company is to operate unprofitably. “If the proposed prices levels are enforced, we might have to retrench. The prices will also cripple our services and business, and as a result there will be no incentive to invest in the network,” he said.

Muniswaswa’s remarks comes after Communication Regulatory Authority of Namibia (CRAN) called on Telecom Namibia to revise its tariff model and reduce charges to affordable levels to majority in accordance with proposed regulations.

The proposed regulations were as a result of a study carried out by CRAN on Telecom Namibia service charges, which found that Telecom Namibia has the highest tariffs compared to countries such South Africa and Botswana, revealed Festus Mbandeka, Chief Executive Officer of CRAN at the second public hearing on the proposed regulations, Tuesday in Windhoek.

The regulations mainly applies to the Telecom lines leased out to the other service providers.

“The regulations come a long way. In the process we consulted Telecom Namibia, which provided CRAN with the information for the study. This is the second public hearing on this regulations. We believe that this regulation will help increase competition and efficiency amongst operations,” Mbandeka said.

Meanwhile, Muniswaswa called on the regulatory authority to retract the regulations to avoid possible bankruptcy of the company Telecom. “Let’s retract this regulations because this will leave Telecom in a difficult position. If not, we might have to seek legal assistance in this regard,” he said.

If the proposed regulations come to effect by January 2018 as planned, Telecom Namibia is set to lose N$170 million dollars annually.

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