The Namibian Education and Policy Research Unit (Nepru) says that MTC is reacting to competition through short-term price reductions.

In its most recent report on the telecommunications sector, the think-tank concludes that these price reductions, while appreciated by the end-user, cannot be expected to continue.

Nepru says that a permanent reduction in prepaid rates will be more effective.

"Looking at the cheapest product from each operator shows that Telecom Namibia has the cheapest products on offer except for the Passive and Low user.

CellOne and MTC still target different segments in the market, MTC targeting the higher end of the market and CellOne the bottom end.

CellOne has currently no postpaid product to compete with MTCs postpaid products," says Christoph Stork, a research associate at Nepru.

He concludes that competitor CellOne needs to "overhaul its postpaid products.

Per-second billing should be standard.

Also, postpaid products should be cheaper than prepaid if not bundled with a handset to be attractive to the end-user."