Despite Fighting; Somalia’s Success Story Is Telecommunication Development

Mogadishu, Somalia (AHN) - In war-torn Mogadishu, standing on a top of a building, a host of mobile phone masts and satellite dishes appear from different directions in the capital city, an ample example of telecommunication development inside Somalia.
There is an increase of mobile phone users in Somalia because telecommunications companies are vying to provide both landline and mobile phone services. Four large telecommunications companies operate in southern Somalia: Hurmuud Telecom Inc., Telecom Somalia, Nationlink Telecom and Somafone Telecommunications Service Co.
In addition, electronics companies have increased imports of mobile phones, making cell phones available everywhere in Somalia.
Telecom Somalia, the first private telecommunications company, was established in 1994, and began to provide landline and mobile services. Hormuud and Nationlink companies followed. But Somafone, which provides only mobile services, is the cheapest mobile service provider in the country.
“The business of telecommunications is very crucial during the war, when everybody is very keen to keep track what is occurring at every minute,”according to Ali Ahmed Nur, managing director of Nationlink Telecom.
“We make profits, but we keep investing to survive. Shareholders reinvest, they want continuous dividends,” added Nur.
Mohammed Abdurrahman, a Somafone company operator, said that Somalia’s telecommunications growth is one of the country's success stories despite the nation being in a pretty pickle.
“Even with the absence of any functioning central government in the Horn of Africa nation for the last 19 years, telecommunications companies have stood to provide the missing infrastructure,” he added.
In 2005, the three biggest companies signed an accord that allows them to set prices and expand their network access, despite the competition.
In Somalia, international calls cost 50 U.S. cents a minute, the cheapest rate on the African continent, largely because there is no functioning central government to tax the telecommunications companies. Users can also access the Internet via their cell phone, which is not easy compared to many other countries in the continent.
Somalia’s political antagonists, businessmen and society consistently use the services provided by telecommunications companies. Banks barely existed in this war-torn African nation a decade ago. Now, Somali residents can bank over their mobile phones.
Even so, some problems still face both the companies and customers. Last month, the Al Qaeda-inspired group Al Shabaab imposed a ban on Zaad Service, a mobile banking service recently launched by Hormuud, Golis and Telesom telecommunications companies in Somalia.
Zaad allows customers to use their mobile phones for money transfers, purchases, payment of bills and airtime recharges.
“Those telecommunications companies must stop Zaad Service mobile banking service in three months,” the insurgent group said in a statement.
In Somalia, 70 percent of the population live on less than US $2. Every single family has one mobile phone each, experts mention, adding that the competition to provide phone services caused a quick growth of mobile phone users in Somalia.
More than 1.5 million people are now estimated to have used mobile service in Somalia, where an armed conflict continues to rage.
Maryama Hussein, a mobile phone user in Mogadishu, told All Headline News that every member of her family has a cell phone.
“My family consists of five members: a mother, two brothers and two sisters. Every one of us has a mobile phone” she said.
“When fighting erupts, we are very worried about our brother’s wellbeing and safety. At that time it is important to stay in touch with them to know if they are fine or not,” she continued.
In a country of about 7 million people, about 2 million Somalis who have fled to other countries use cell phones to keep in touch with their relatives and friends still in Somalia.