Africa-Press – Namibia. MTC says NamPower was being greedy and engaged in extortion by demanding N$645 million for the use of its fibre cables, which power Namibia’s use of telecommunication products, such as cellphones.
NamPower has, however, rejected MTC’s complaints, saying Namibia’s biggest telecommunications company is jumping to conclusions and being opportunistic.
MTC claims NamPower has been asking for more money to use its network cable facilities.
“Based on negotiations between the parties in late 2021, it appears that NamPower expects MTC to pay about N$645 million for a period of 10 years for the leasing of fibre optic routes,” MTC’s managing director, Licky Erastus, said in documents filed at the High Court last week.
Erastus in the court case claimed this figure is based on the pricing proposals provided by NamPower at the time of negotiations. “This is extortion. NamPower wants to charge 17,5 times more for the same product,” Erastus said.
“Additional (and significant) costs will inevitably be passed on to end consumers, who will immediately (or very soon) have to start paying a higher price for MTC services,” he said.
Erastus said MTC paid a total amount of N$24 million from 2012 to this year for leasing the same optic fibres.
NamPower has rejected MTC’s complaints, saying the matter was not even supposed to be in the courts, and that the case should not be considered urgent.
NamPower managing director Simson Haulofu responded to court documents last week, saying there is no threat to MTC’s use of NamPower’s fibre infrastructure “until a court issues an order in favour of NamPower”.
The national power utility operates various electricity supply networks, which includes optical fibre running across the country. NamPower has used this network to monitor and measure electricity usage.
With MTC and Telecom Namibia needing to use NamPower’s optical fibre to deliver telecommunications services to their customers, the two companies exclusively concluded an agreement in 2012 with NamPower to use parts of what is called optical ground wire fibre.
Not pleased with this agreement, other telecommunications providers complained to the Communications Regulatory Authority of Namibia (Cran) that MTC and Telecom should not monopolise NamPower’s fibre cables.
NamPower has since then been under pressure by Cran and the Namibian Competition Commission to stop the monopolistic arrangement with MTC and Telecom Namibia.
Cran found that the agreement between the three companies had “void and unenforceable” clauses.
MTC filed court papers last year challenging Cran’s decision, but there was another problem. NamPower has seemingly decided to allow the 10-year agreement with MTC and Telecom Namibia to lapse last year.
However, the agreement has been repeated several times since it lapsed in 2022. The last extension – agreed to in September 2022 – has now become a bone of contention between MTC and NamPower.
According to MTC, the extended agreement is extended until the High Court makes a decision on its challenge of Cran’s ruling.
NamPower’s Haulofu detailed in court papers why MTC’s case does not hold water.
“It’s not NamPower that is opportunistic. In fact, it is MTC which is opportunistic,” he said.
Haulofu said he believes Telecom Namibia made similar threats, but withdrew its case.
According to Haulofu, the main dispute between MTC and NamPower is the extension agreement signed in September. He said the last agreement was only set to last until 28 February.
Haulofu said the parties did not deal with what would happen if the High Court did not pronounce itself by the end of that contract.
“Of course MTC is wrong in its interpretation and it elects to continue to use the dark fibre instead of engaging NamPower on the alternative options as proposed by NamPower. It would have to bear the consequences of such actions if NamPower succeeds with a claim for damages.”
Haulofu said NamPower could not confirm if MTC indeed invested N$134 million in fibre technology.
He said the national power company has been trying to comply with Cran regulations on the use of infrastructure.
NamPower spokesperson Tangeni Kambangula yesterday told The Namibian if the parties are unable to agree on a pricing structure, they can approach Cran for adjudication.
“This is exactly what Telecom had done, but it has since withdrawn that request for an adjudication, which would have resolved all issues and discomfort around the pricing issue.”
Kambangula said NamPower does not have enough dark fibre to provide to all telecommunications service providers on an equitable basis and to meet its future needs.
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