mobile phones in Somalia

[somaag]

Hello,

I'm studying the mobile phone economy and would like to know about services in Somalia. I have heard somewhat contradictory things about the quality and affordability of services, but overall it sounds like a remarkable case of growth considering the political environment. I was wondering what the reaction was among people who have phones? Are they in fact cheap and reliable? What kinds of challenges and opportunities do you think are specific to telecommunications work in Somalia or more specific markets (e.g. Mogadisho, Kismayo, Hargeisa, rural areas, etc.)? Is the service any different from other places (Africa or elsewhere) in technology or terms of service? Where does the equipment come from? Do people need any special training to set up operations? Is it profitable?
Do you know anyone who worked in this industry directly that might be willing to talk about it? Unfortunately, I am not yet a Somali speaker and do not think I will travel there until I am.

Thanks for your help!

[Ican]

With no effective government, the telecommunication industry like all other industries is run by private investors and their no communication between them, so it's a mess but still cheap and affordable. I;ve had family who've been to Bossaso and they say their are many internet cafe's(usually dial up connection) and calling people abroad is cheap.
Hopefully with the current government and succeeding government, the industry will be standardized.

Here's some more information

"As the first telecom companies started operation using the pre-1991 land-line infrastructure, new entrants partnered with international giants such as Sprint, ITT, Telenor, and offered GSM connection, while in parallel building their own networks of land-lines. Since 1996, early entrants like Soltelco and STC reduced prices, while improving service, in an effort to capture market share. From the mid 1990s on, other private wireless companies such as Barakaat, Aerolite, and later Somtel, sprung up. As a result of competition, all major towns are served by telephone services that are superior to and cheaper than those of most African countries. International call prices have fallen in the 1990s from $5-7/minute to $0.50 in large cities and $1.50 in smaller cities where population density is too low for competition. Local call vary from $0.10 to $0.35/minute depending on competition. Service coverage is considerably wider now than prior to the collapse of the central government.7 Telecoms provide fax, internet, and mail/package delivery services. The industry is characterized by lack of standardization in the telephone numbers and frequencies used, as well as duplication of equipment, and limited inter-connectivity among different telecom providers. Thus, Telsom, STC, and Soltelco each have a set of poles in Hargeisa. In order to be able to call all Hargeisa inhabitants, one needs a subscription to four different telecom firms. Whether this failure to coordinate can be solved in the absence of regulation is an open question: initial steps in this direction have been undertaken. For example, Soltelco and Aerolite succeeded in interconnecting their local services. However, interconnectivity is unpopular due to issues with settling the inter-payments on shared equipment and connection. In the long run, there is reason for optimism, since interconnectivity is a herding equilibrium problem: once the major operators interconnect, it will be in the interest of all remaining ones to join. In Mogadishu, all firms share the same poles, and Nationlink and Olympic share microfiber. Also, firms expanding their pole network in Mogadishu allow usage rights to competitors by agreement. Limited sharing of a black list of persistent payment defaulters is also practiced. Negotiations to establish a national network linking all systems have started within the framework of the telecoms association, the Standing Committee of Telecommunications Companies."
Nenova-Somali Private sector

[FAH1223]

I also hear that part of Africa will be going fully broadband soon too

[*Arabman]

[Hello,

I'm studying the mobile phone economy and would like to know about services in Somalia. I have heard somewhat contradictory things about the quality and affordability of services, but overall it sounds like a remarkable case of growth considering the political environment. I was wondering what the reaction was among people who have phones? Are they in fact cheap and reliable? What kinds of challenges and opportunities do you think are specific to telecommunications work in Somalia or more specific markets (e.g. Mogadisho, Kismayo, Hargeisa, rural areas, etc.)? Is the service any different from other places (Africa or elsewhere) in technology or terms of service? Where does the equipment come from? Do people need any special training to set up operations? Is it profitable?
Do you know anyone who worked in this industry directly that might be willing to talk about it? Unfortunately, I am not yet a Somali speaker and do not think I will travel there until I am.

Thanks for your help!]

Somalia is a predominantly (+99%) Muslim country. At this time, it's under occupation and colonization by Christian occupying and colonizing forces with the help of local collaborators and arms/financial support of America and Europe.These are turbulent and risky times in Somalia. Until it's liberated, I wouldn't advise any type of investment. You're welcome.

[Ican]

Somaag

I advice you to ignore arabman, he lives in his own wahabbi world and is totally disconnected from reality. Somalia is safe to invest in, from Hargeisa to Bossaso to Kismayo. The bulk of the instability in concentrated in the capital and that will not last long.


FAH

yes, I've heard same thing. I Remember reading an article about world bank funding for broadband in Africa. But I would not consider this as a good thing, world bank money more than likely means more debt Africans have to pay back to the west.

[*Arabman]

WARNINGS AND RECOMMENDATIONS

OFFICIAL WARNING: Foreign Affairs and International Trade Canada advises against all travel to this country. Canadians in this country should leave. (IDW1)

There is no resident Canadian government office in Somalia, and the Government of Canada cannot provide consular assistance to Canadian citizens in distress in Somalia. Canadians who are in Somalia despite this warning and who are confronted with an emergency will have to make their way to the nearest embassy or consulate of Canada (see section 5) or rely on their own resources. They should be especially vigilant, monitor local news reports, and avoid large crowds and political events, as well as situations where political violence and demonstrations may occur.

The security situation in Somalia is very volatile. In late December 2006, the Transitional Federal Government (TFG), supported by the Ethiopian military, launched an offensive against the Union of Islamic Courts, who had controlled much of South-Central Somalia. Since that time, there have been guerilla-style attacks against TFG and Ethiopian targets. These attacks, frequently in the form of mortar/grenade and improvised-explosive device attacks are a near daily occurrence, particularly in Mogadishu and civilian casualties are not uncommon.

The airport and seaport are operating commercially. The land border between Kenya and Somalia remains closed and air traffic between the two countries is subject to special procedures by the Kenyan government.

The security situation is dangerous and unpredictable across the country. Travellers are at risk of kidnapping, murder, or arrest without notice or apparent cause. There is no guarantee of a fair trial or that local courts will respect diplomatic or United Nations immunities. There is an increasing trend towards Islamization of the local courts in many parts of the country, which utilize the Sharia Code for proceedings. You should be aware that anti-Western sentiments are strong in many parts of the country. Violent demonstrations, attacks (possibly targeting foreigners) and armed military activity can occur at any time.

There is a high security threat in Somalia. Killings and kidnappings continue to occur in all areas of the country and there have been targeted assassinations of foreigners including journalists, human rights activists, and humanitarian workers. The rule of law is virtually non-existent. Outbreaks of violence can arise unpredictably and parties involved are often armed. These violent incidents have resulted in civilian casualties.

Somaliland, a self-declared republic in the northwest, is seeking independence. Puntland, an administrative region in the northeast, is operating as a separate entity. Somaliland and Puntland operate autonomously and some parts of these regions have had periods of slightly more stability than the south-central part of the country, however violent incidents and targeting of humanitarian workers has occurred. It is also possible that tensions and escalating violence in the south of the country can spread to Somaliland and Puntland at any time. There continues to be tension between Somaliland and Puntland over the regions of Sool and Sanaag.

It is the responsibility of individual travellers to make informed travel choices. The Government of Canada takes very seriously the safety and security of Canadians abroad and provides credible and timely advice in its Country Travel Reports. Situations vary from country to country, and there may be constraints on government resources, which can limit the ability of the Government of Canada to provide assistance, particularly in countries where the potential for violent conflict or political instability are high. In the event of a crisis situation that requires evacuation, the Government of Canada’s policy is to provide safe transportation to the closest safe location. Canada will assist Canadians in leaving a country as a last resort, when all means of commercial or personal transportation have been exhausted. This service is provided on a cost-recovery basis. Onward travel is at the individual’s personal expense.

>http://www.voyage.gc.ca/dest/report-en.asp?country=269000#2

[somaag]

Thanks for your help. I don't plan on doing any investment. I'm writing a student thesis on this topic. I've heard people say the system is cheap and reliable, but somehow inefficient, so I was wondering what type of technology they use and how the companies are organized, since they rely on foreign service providers, but none of the foreign companies actually have offices in Somalia. This must be quite unique. Also, I've heard people say the lack of interconnection is one of the biggest problems, but that they're now fixing this. I'm not sure how they resolved the disagreements, though.

[*Arabman]

somaag, what you have heard that the system is cheap and reliable could be true, but it's primarily due to the fact that there's no government or no taxes to be paid to a governing authority. I don't think the system would be one of state of the art, but 5-15 years-old systems from Europe or Asia. The system would be like an old computer fitted with more RAM/NIC or other add-ons to make it compatible with the latest software, bandwidth connection, etc. I think the system uses a dish or more to connect to satellites, and antennas for local connection. This is where the individual/comany that owns the system makes a monthly/yearly payment arrangement with the satellite company. As for the lack of interconnection, this could be an issue of mobile companies using different GSM frequency bands.

[Unclebin-]

I know a dude who went back there. His Telephone service collapsed.

You should be advised. Unless you have militia to protect your business you will fail sxb.

Somalia is not a business haven.

You need connections.