Thursday 25 July 2024

Namibia's Universal Service Fund - better late than never

 The Communications Regulatory Authority of Namibia (CRAN) advertised in daily newspapers for the position of Manager: Universal Fund on 25 July 2024. This has taken a long time (like many other issues at CRAN) but we hope that it will soon be operational.


If we look at the history of CRAN, there are numerous issues that should have been dealt with by the Authority but never have been operationalised. Let us look at these issues that impact the lives, and pockets, of Namibian consumers

Background

The Communications Act 8 of 2009 established the Communications Regulatory Authority of Namibia to provide for the regulation of telecommunications services and networks, broadcasting, postal services and the use and allocation of radio spectrum. In the law it provides for, amongst others, the following:

  • Universal Service Fund (Part 4);
  • protection of consumers (Part 7); and
  • a numbering plan that must require mobile number portability by all technology and service neutral licensees within two years from the date of commencement of this Act (Part 7).
  • (The other two issues will be dealt with in later blogs)

    Universal Service Fund - benefiting the poor

    Imagine living in a world without internet. No YouTube videos, no social media, no Netflix, and no way to easily do your homework or research. For many people, this is a reality.

    A Universal Service Fund (USF) is like a special pot of money that governments use to make sure everyone, even people in really remote areas, can access the internet. It's like making sure everyone has a chance to use the same cool tools and information. 

    How does it work?

    • Collecting money: Usually, internet service providers (like your phone company) pay a small amount extra on your bill. This money goes into the USF.
    • Funding projects: The government uses this money to pay for things like:
      • Building cell towers in rural areas
      • Providing internet to schools and libraries
      • Offering internet plans at lower prices for people who can't afford it

    Why is it important?

    • Education: Students can access online resources, do research, and learn new things.
    • Jobs: People can find jobs, apply for them, and learn new skills online.
    • Healthcare: Doctors can use the internet to access medical information and connect with other doctors.
    • Communication: Families and friends can stay connected, no matter where they live.

    In short, a Universal Service Fund helps to level the playing field, making sure everyone has a fair chance to benefit from the internet.

    Under the Communications Act, a fund is to be established when the Act becomes operation - that is in 2009. It is not clear what prevented the establishment of the fund and the levies, but the monopoly cellular company, MTC, took CRAN to court in 2020  when they lodged a constitutional challenge against Section 23 of the Communications Act, contending that the amendment granting CRAN the authority to impose regulatory levies failed to establish limits on levy amounts, lacked executive oversight, and granted CRAN unchecked discretion. "On 13 March 2024, the Supreme Court delivered its verdict, overturning the previous ruling and affirming the constitutionality of the amended Section 23. The Court underscored the legislature’s efforts to provide detailed guidelines, thereby curbing CRAN’s discretionary powers and ensuring a balanced approach to levy imposition.

    In a media statement following the judgment, the Supreme Court praised the amended legislative framework for establishing clear criteria for levy determination and implementing safeguards against arbitrary decision-making by CRAN. The ruling provides stability to CRAN’s funding structure and paves the way for the implementation of the Universal Service Fund, a crucial initiative stalled by the legal dispute."1

    I hope that this latest advertisement it means that CRAN is at last starting to do its job as provided for in 2009.