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Somalia Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

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Last updated: 19 Jun 2024 Update History

Report Status: Current

Report Pages: 89

Somalia’s Hormuud Telecom launches 5G services

Somalia has suffered several economic shocks in recent years, partly exacerbated by a prolonged drought, increases in global commodity prices, and high inflation. These conditions have reduced household consumption. The telcos, too, have seen pressure on revenue and this has impacted on investment in infrastructure. The government has also had to contend with militant groups which continue on occasion to force the closure of internet services in many areas of the country.

In recent years, though, the government has addressed the lack of guidance which had prevailed since 1991, when a dictatorial regime was overthrown. The National Communications Law was passed in October 2017, aimed at setting a legal and regulatory framework for the telecoms sector, while provision was made in the following year to set up a regulatory authority to oversee the telecom sector. More recently, three types of licenses have been issued to operators, providing clarity and bringing the market closer into line with international standards.

The regulator has also made great strides recently to develop a cohesive strategy for the telecom sector. It concluded the necessary regulatory framework to ensure interconnection between mobile networks, following several agreements among operators over the last two decades which were quickly abandoned for being unworkable. In addition, it developed a 5G strategy in September 2023, offering three potential avenues by which 5G networks could be deployed nationally, thus addressing the significant digital divide and encouraging social inclusion. Following this, three of the mobile operators have launched 5G services. The technology is seen as an important stepping stone towards the country developing its digital transformation.

Despite the many inherent difficulties faced in the country, the telecom market has flourished. Tariffs are among the lowest in Africa, and new cable systems coming on stream in the next few years (providing additional connectivity to Asia and Europe), as well as planned investments from local operators to bolster the country’s national fibre backbone, will lead to downward pressure on retail pricing.

Key developments:

  • Hormuud Telecom launches 5G, providing 81% population coverage in covered towns.
  • Mobile interconnection agreement comes into force.
  • Regulator issues more licenses to telcos.
  • Somalia’s 5G deployments helping transition to a digital payments society.
  • Regulator consults on a national 5G strategy.
  • New spectrum monitoring operations centre is opened to ensure the efficient use of available spectrum nationally.
  • Government sets up a National Emergency Telecom Plan establishing a unified communications framework for its disaster response efforts.
  • Report includes updated Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in this report:

Dalkom, Golis Telecom, Hormuud Telecom, Nationlink, Netco, Somafone, Somtel, Telcom Somalia, Telesom, Thuraya

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