Namibia’s telecommunication regulators have warned that a newly launched product, offered jointly by the country’s mobile service provider and a financial institution, is not in line with national communication regulations.

Cell One partnered last week with Trustco Group to form Trustco Mobile, which sells virtual airtime in conjunction with a 30-day life insurance policy.

Namibia Communication Commission Chairman David Imbili said the joint venture operates as a VMNO (virtual mobile network operator), which the current NCC legislation does not permit.

VMNO refers to an operator without a network license that partners with an existing mobile operator to make use of the latter's network. VMNOs are illegal in most African countries, and the Namibia Communication Commission is concerned that Cell One may have allowed Trustco Mobile to piggyback on its network to deliver the joint product.

Cell One, however, insists that the offering is not sold as a VMNO but that Trustco Mobile is merely a distributor of Cell One airtime.

The NCC is expected to make a decision next week on whether to allow Trustco Mobile to continue operations.