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CRAN reports decline in postal usage (…while revenue for data driven services surpasses N$800 million)

Nampost mail boxes

The “snail era,” in Namibia, is fast reaching its end. This, if recent statistics from the Communications Regulatory Authority of Namibia (CRAN) are anything to go by.
CRAN reports that in the last quarter of 2024, postal box usage in Namibia dropped by 35%, whereas the utilization of private bags also fell by 37%.
This decline in post box and private bag usage can be primarily attributed to the widespread adoption of digital communication methods like email and online messaging, leading to a significant decrease in the volume of physical letters being sent through the mail.
The CRAN Quarterly Statistics newsletter reports that the developments are a reflection of “shifting consumer preferences and the growing adoption of digital communication, such as E-mails.”
“Post-box usage dropped by 35%, bringing the overall occupancy rate down to 30%. Similarly, the usage of private bags fell by 37%. This downward trend highlights the ongoing challenges faced by traditional postal services in adapting to evolving market demands,” the report suggests.
The above is corroborated by reports that data-driven services remained the key revenue driver in the telecommunications sector, whereas SMS and voice revenues continued to fluctuate, with a decline.
“In the third quarter of 2024, data revenue surpassed N$800 million,” the report states. Speaking of income, according to the report, ICT revenue increased by 6% in the last quarter of 2024, maintaining its upward growth trend. Confidente has learned that, of the N$6 billion in revenue generated by licensees, 70% was allocated to operating expenses.
Ironically, during the same quarter, the telecommunications sector’s investment in software and network upgrades totaled N$122 million, marking a 77% decline from the previous quarter.
“This decrease was primarily attributed to MTC’s reduced capital expenditures during the review period, possibly owing to project completion cycles. Investment tends to show up and down trends depending on the availability of funds and other factors,” CRAN reports.
As far as broadcasting is concerned, Pay-TV subscriptions saw an 11% decline in the fourth quarter of 2024, which may be attributed to the recent increase in subscription fees and growing competition from streaming platforms like Netflix.
However, in the fourth quarter of 2024, the broadcasting sector’s total revenue remained stable despite a significant increase in advertising revenue.
“This stability was attributed to other key revenue components remaining unchanged. The share of advertising revenue within the total revenue rose by 2%, reaching 11%, up from the consistent 9% recorded in previous quarters,” the SoE reports.
It has further emerged that, in the fourth quarter of 2024, the total number of active SIM cards increased by 3%, primarily driven by modest growth in the prepaid sector.

TN Mobile is said to have recorded the highest rise at 7%, while MTC’s prepaid SIMs grew by 2%. Despite this overall growth, according to CRAN, mobile broadband usage via mobile phones decreased by 3%, lowering the percentage of SIM cards used for internet access from 64% to 60%.
“Furthermore, mobile broadband usage through dongles and routers experienced a substantial decline of 17% during the same period, indicating a gradual phase-out of these connectivity devices,” CRAN stressed.

Author
Jeremiah Ndjoze

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