CRAN report reveals 5% decline in active SIM Cards, driven by prepaid SIM card reduction

The Communications Regulatory Authority of Namibia (CRAN) has published its Quarterly Statistics for the period from 01 April to 30 June 2024. This bulletin offers a comprehensive overview of subscribers, traffic, broadcasting, and postal services during the second quarter (Q2) of 2024. Key highlights include statistics on Subscriber Identity Module (SIM) usage for internet access, fixed-line subscriptions, mobile outgoing minutes, revenue from the broadcasting sector, and postal operations.

Mrs. Helene Vosloo, Executive: Economics & Market Development, says that “The total number of active SIM cards decreased by 5%, primarily due to a 6% decline in prepaid SIM cards. This reduction is likely attributed to the prepaid packages with longer validity offered by licensees coupled with the implementation of SIM card registration requirements, which stipulate that only registered cards can remain active.”

As a result, mobile broadband usage on mobile phones decreased by 11%, leading to a decline in the share of SIMs accessing the internet from 66% to 61%. Conversely, usage through dongles and routers saw a substantial increase of 17% during the same timeframe.

Overall, fixed internet subscriptions declined between 3% and 15%. However, some segments demonstrated growth during this period. Fiber–To–The–X (FTTx) subscriptions increased by 9%, other wireless services grew by 2%, and Voice Over Internet Protocol (VoIP) subscriptions rose by 12%. These positive trends suggest a shift towards more modern, faster, and more flexible internet solutions

“Total outgoing mobile minutes saw a slight decline of 3%, largely influenced by a notable 14% decrease in TN Mobile On-net minutes. In contrast, mobile data usage, measured in gigabytes, experienced a modest 2% increase, primarily driven by a significant 13% rise in Paratus Telecommunications’ mobile data traffic,” added Vosloo.

Furthermore, capital expenditure in the telecommunications sector amounted to approximately 243 million NAD, primarily directed towards enhancing both physical infrastructure and software capabilities. Meanwhile, data revenue remained consistent, with SMS and voice revenues showing predictable seasonal trends. In the realm of postal services, operations demonstrated stable activity levels overall.

Investment in the broadcasting sector reached 1.4 million NAD, reflecting a 26% decrease from the previous quarter. Overall revenue in the sector declined by 2%. In contrast, advertising revenue experienced a positive trend, increasing by 2% and representing 9% of the sector’s total revenue, a figure that has remained stable in recent quarters.

“Pay-TV subscriptions saw a significant 6% decline overall. This trend continues to fluctuate, driven by changes in consumer behavior and market dynamics, with more viewers transitioning to alternative digital streaming platforms,” concluded Vosloo.