Raising the bar for the country's robust telecom sector and fostering healthy competition

The end of unhealthy rivalry between the different telecom providers in Somalia is a welcome development for the country’s promising telecom sector.

The history of telephone service in Somalia stretches back over a century, with the government making significant investments in the industry following independence. However, the collapse of the central government in 1991 had a major impact on the sector, but private Somali businessmen engaged in modernizing and expanding the nation’s telecommunications infrastructure and industry, allowing the country to achieve success in telecom sectors.

They have achieved significant advancements over the last few years in Somalia, telecommunications firms, all of which are owned by Somalis, have played an important role in allowing Somalia to keep pace with the rest of the world in the rapidly-evolving telecom technology landscape, At the moment, the infrastructure of Somalia’s telecommunications industry is rather advanced.

Hormuud, Somtel, Som Link, and Amtel are some of the telecommunications companies that are now active in the country. These companies offer a variety of services, such as voice calls, SMS, and internet access, however, there is one issue that was posing a problem for the average Somali, and that issue is a lack of interconnection between these providers.

Interconnection agreement

In Somalia, using a telephone to make a call to another person who uses another company provider was not feasible; however, this is no longer the case as a result of an interconnection agreement struck by the National Communications Authority (NCA) and the Somali telecommunication firms.  

Thanks to this groundbreaking agreement, it will soon be possible for everyone, regardless of the service company they use, to make calls that span several networks.

The agreement, which was signed by the NCA General Manager, Mustafa Yasin Sheikh, and representatives from network operators, was also witnessed by the Minister of Communications and Technology (MOCT), His Excellency, Jama Hassan Khalif, State Minister, and Deputy Minister of MOCT.  

The interconnection agreement will take effect on January 10, 2023, and the process of connecting will be finished by February 2023 at the latest.

According to Mustafa Yasin Sheikh, the General Manager of the National Communications Authority, the interconnection issue was one of the most important aspects of the National Communications Law. The authority has completed all of the necessary regulations and technical guidelines in order to assist the operators in implementing the interconnection in a fair manner, while protecting the consumer interests.

Mustafa went on to say that the agreement will lead to an enhancement in the quality of the communication services that the operators provide to their customers, as well as the growth of Somalia’s communication infrastructure.

Mr. Mustafa noted that in addition to the interconnection agreement being a requirement and a right for the customer, it is also an important benchmark for the growth of the telecommunications market and the investment in technology and innovation. Mustafa is hopeful that this agreement will put an end to discussions that have lasted since the inception of telecom companies in the country.

According to H.E. Jama Hassan Khalif, the Minister of Communications and Technology, the arrangement removes the barriers between the mobile providers in Somalia, which is a limitation that has long restricted the ability of Somali citizens to interact more effectively. “The government stands for protecting the rights of citizens, whether they are customers or owners of mobile operators,” said the minister. “The work completed today by the Ministry is a living example of the government’s commitment to improving telecommunication and creating an enabling environment for the telecoms to operate in a legal atmosphere where they can all flourish.”  

The representatives of the telecom operators who signed the agreement complimented the outcomes of the protracted negotiations that took place, which is an essential requirement by the National Communications Law, and the international standards for linking mobile providers.

The interconnection deal is an additional significant milestone that will help Somalia’s rising position in the telecommunications sector on the African continent and throughout the world. It will also help pave the way for new opportunities for mobile operators while simultaneously improving people’s lives and their ability to communicate with one another.

Telesom and Somtel interconnection agreement

Somaliland has made developments on par with those of its counterparts and has booming telecommunications businesses. The telecommunications companies Telesom and Somtel, both of which operate in Somaliland, have been one step ahead, earlier this year, the government of Somaliland established an interconnection agreement.

According to a statement released by the country’s Minister of Information and Communication Technology, “The main challenge is the tough competition between the two leading operators in the country.”

The ministry of Information and Communication Technology is responsible for achieving interconnection among the country’s leading providers, the statement also noted that “The main challenge is the tough competition.” Their rivalry extends to every aspect of the telecommunications industry, including price, government subsidies, and the infrastructure. via taking into account the aforementioned criteria.

Interconnection laws and a road map for guiding the interconnection of telecommunications networks have been prepared by the Ministry. In a similar vein, the Ministry has convened a meeting between both providers of telecom services and has served as a facilitator for discussions between the operators in an effort to resolve concerns and initiate interconnection service, as reported by SAMENA Council Messaging.

The success of Somalia’s telecommunications companies

In recent years, there has been a significant degree of expansion and modernization in the sector of the Somali economy that deals with telecommunications. The widespread adoption of mobile phone use has been a significant contributor to this development, with the percentage of people who own a mobile phone currently exceeding 90 percent of the total population.

There has been significant improvements in both the quality and the availability of the services that are now offered.

Hormuud Telecom is one of the major telecommunications companies that provide internet access throughout the nation and internet in Somalia is one of the cheapest in the world.

As of 2018, Somalia was listed as the nation in Africa with the cheapest internet service available to its citizens. In 2021, Somalia was placed in third place on the African continent among the countries that provide the lowest prices for internet access.  As of the year 2022, Somalia was placed in fourth place among the countries of Africa in terms of having the most affordable internet service.

On remittance, there are billions of dollars that are sent through the major telecoms through the remittance firms that they run, and mobile money in Somalia is very widely used and very efficient. In addition, unlike neighboring countries, there are no transaction costs associated with using mobile in Somalia, which is a huge advantage.

Challenges

However, the field of telecommunications in Somalia is still faced with a number of challenges, the most significant of which are the lack of lack electricity in rural area.

In addition, the fragile nature of the country’s security situation has generated additional barriers that must be overcome in order for the nation’s telecommunications infrastructure to continue to be developed and maintained. In general, Somalia’s telecommunications industry has made great headway in recent years, which is a positive indicator for the country’s future