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Leo decision by end-April PDF Print E-mail
Written by Augetto Graig   
Wednesday, 11 April 2012 22:46

The Namibia Competition Commission will not be hurried in proclaiming itself over the case of Telecom Namibia’s bid to take over telecommunication rival Powercom, which trades as Leo. Telecom Namibia makes over N$1 billion annually and is owned by Namibia Post and Telecommunications Holdings (NPTH) which also owns 60% of MTC and all of Nampost, the only other telecommunications service providers in the country other than Leo.


Vitalis Ndalikokule, of the Competition Commission told Informanté this week that as they have “not yet issued a final decision,” on the matter he could not shed any more light on the issue and is unable to comment. He did say however that the commission is expected to meet at the end of April, after which a decision can be expected. He would also not be drawn into what the commission is actually taking into consideration in making their decision. He said that the relevant information is available in brochures at the commission and in the Competition Act 2 of 2003.
Last week the Namibia Consumer Trust (NCT) voiced its disapproval over the proposed merger, saying that the deal would consolidate telecommunications service provision in Namibia in the hands of NPTH. NCT executive director, Michael Gowaseb, said that the application, “is not in line with the relevant purposes” of the Competition Act and also not with the Communications Act, enforced by the Communications Regulatory Authority of Namibia (CRAN). “The purpose of the Competition Act is to provide consumers with competitive prices and product choices as well as to promote a greater spread of ownership,” Gowaseb said, citing the Act.
But Telecom Namibia’s Oiva Angula takes a very different view on the matter. According to him, “we are in the business already and there has been competition between us and MTC. When we had Switch, MTC complained and we were restricted. Nothing has changed. NPTH is just the mother-body to channel dividends to the government.  
It is not an executive board but only for ownership. In terms of how we operate, we are independent. There is real competition, because we each have our own board of directors and our own management. NPHT is only a ceremonial parent company, there is no link between us,” he said.