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25 March 2025
The Namibian Competition Commission (NaCC) has launched a critical investigation into a dark fibre infrastructure agreement involving Telecom Namibia, MTC, and Namibia Power Corporation (NamPower), citing concerns that the arrangement has hindered competition among industry players..png?lu=318)
This decision follows a comprehensive inquiry prompted by the completion of the agreement, which was originally signed on 1 June 2012.
NaCC's findings suggest that the agreement grants Telecom Namibia and MTC exclusive access to a specific portion of NamPower’s dark fibre infrastructure for ten years, with an automatic renewal option for an additional year. This exclusivity is believed to contravene multiple provisions of the Competition Act of 2003, specifically Section 23(1), which prohibits agreements between competitors that significantly prevent or distort competition.
The ongoing investigation, initiated by the commission in February 2023, reveals that while NamPower has begun providing some competitors access to its dark fibre resources since 2019, the terms of this access diverged significantly from those afforded to the two dominant telecommunications companies. NaCC believes this disparity has provided Telecom Namibia and MTC, which collectively command over 80% of the market share, an unjust competitive advantage.
The commission also noted regulatory compliance issues, stating that the telecoms had not adhered to infrastructure-sharing regulations set forth by the Communication Regulatory Authority of Namibia (CRAN), which were highlighted in a government gazette in October 2016.
According to NaCC, the examination uncovered that the three entities have abused their market dominance through the agreement, violating several sections of the Competition Act, including Sections 23(1), 23(2)(b), 23(3)(a), 23(3)(e), 23(3)(f), along with Sections 26(1), 26(2)(b), and 26(2)(c).
While the NaCC has reached preliminary conclusions regarding the prohibited nature of the conduct, it has yet to make a final decision. The commission has allotted the involved parties a 30-day window to submit written documentation or make oral representations regarding the findings.
Following the assessment of submissions from all concerned entities, NaCC may proceed to initiate legal action in the High Court against the implicated companies, further emphasizing the critical nature of competitive practices in Namibia’s telecommunications landscape.
