Can Paratus Namibia compete against giants like MTC and Telecom?
“I believe Paratus can gain significant market share in the Khomas and Erongo regions” states a report published by Chris Schoonbee, the principal consultant at DigitalCroow, who recently conducted an in-depth overview of the Namibian telecommunications sector.
The report specifically looks at the three biggest operators and attempts to answer the question how Paratus Namibia might be able to gain market share from MTC and Telecom. The report looked at a number of factors including the ongoing fiber rollout, pricing strategies and overall product offerings.
According to Schoonbee, MTC could see a decline in its share of the market which should be taken as a promising sign to Paratus shareholders. Although MTC outspends both Telecom and Paratus in the advertising department, he notes that its ad spend is still not enough to sustain its size. In the report, Schoonbee also highlights the limited number of telco’s operating in Namibia and how Paratus, though small, is still able to compete effectively.
MTC has been dominating the market since its founding with a significant headstart over its competitors. The main reason behind MTC’s dominance is that it has managed to secure high volumes of subscribers for its services. This fact coupled with its wide network and infrastructure means that Paratus has to pick its battles carefully.
Their focus on the Khomas and Erongo regions has proven effective in early market penetration. Between March 2019 and June 2020, Paratus spent N$72.6 million on their fiber infrastructure in those two regions. This is a significant investment that Schoonbee thinks will continue to pay off in 2021 and beyond. “Although I can’t see any big spikes in the market share data, these kinds of distribution and product investments usually have a long tail impact on brand awareness that you’ll really start seeing 12 months plus after the fact,” he stated.
“There are arguments that suggest that Paratus will eventually be able to compete effectively against MTC in the long run. However, it is important to note that my arguments and suggestions are based on publicly available data like annual reports. I can’t speak for any of the companies. If I had access to internal data from the companies in question, I’d be able to prove or disprove those hypotheses.”
Schoonbee reminds readers: “I’m just an independent analyst and I wrote the report to offer a perspective based on marketing effectiveness and brand strategy,” adding that he has operated as a consultant for the past 4 years, specialising in marketing and brand strategy. Through his consultancy, DigitalCroow, he has helped both domestic and international companies to improve their marketing performance.
“It is important to remember that the Namibian market is still relatively young and developing. MTC has an advantage over Paratus because it had a long headstart, especially in terms of infrastructure development. It has also become quite a bit more mainstream like Vodacom and MTN in South Africa.
However, Paratus does have two big advantages over MTC. The first being the fact that their product offerings, like fiber, are well received by the market. The second advantage is their brand reputation, people have come to know Paratus as a reliable service provider.”
“I believe that if they continue on their current trajectory and pay attention to some of the areas highlighted in my report, the future can look very bright indeed,” he concluded.
Download the report at: https://bit.ly/dcreport01
View the DigitalCroow Website: www.digitalcroow.com