Somalia - Telecoms, Mobile and Broadband - Market Insights and Statistics

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Somalia - Telecoms, Mobile and Broadband - Market Insights and Statistics

Rapid Communications gains mobile banking licence

Somalia's telecom market is unique, having managed to thrive despite there having been no central government since 1991 when a dictatorial regime was overthrown. Through the anarchy which has followed, and which continues in many areas, the telecoms sector has flourished. It is highly competitive, particularly in the mobile market where seven networks compete for customers. Some of these operators also offer fixed-line and internet services. There are no regulations or taxes, and no service obligations. Tariffs are among the lowest in Africa. However, the absence of regulation has also led to problems with frequency spectrum coordination and interconnection between networks.

In addition, the threat of piracy in Somalia's territorial waters, and beyond, has so far prevented the country from gaining access to international submarine fibre optic cables. This meant that the country for long relied on satellites for international connections, and consequently the broadband capabilities of Somalia's Internet Service Providers (ISPs) were limited. However, in late 2013 Liquid Telecom built the country's first fibre-optic broadband link, connecting across the Kenya border and linking to directly into Hormuud Telecom's network.

Recent progress in the fight against Islamist militias and the formation of a new government are giving rise to hopes that the country may finally stabilise and become more attractive to foreign investment, which is needed to take the telecoms and broadband sector to the next level. The new government is beginning to regulate the sector and is planning to issue new spectrum licences that will allow the operation of high-speed mobile broadband technologies.

Estimated market penetration rates in Somalia's telecoms sector end 2014
Market | Penetration rate
Mobile | 54%
Fixed | 0.6%
Internet | 1.9%
(Source: BuddeComm based on various sources)

Key developments:

Rapid Communications reportedly awarded a mobile banking licence;
New government may bring more stability for foreign investment;
Liquid Telecom builds the country's first fibre-optic broadband link;
Dalkom provides connectivity via the EASSy cable;
Militants force telcos to cut internet links;
Telesom expands mobile wallet service, enables remittances from abroad;
SEACOM cable lands in Mogadishu;
Somtel contracts Alcatel-Lucent to develop LTE infrastructure;
Glocall Telecoms launches LTE;
Three mobile operators agree to interconnect their networks.

Companies covered in this report:

Dalkom; Golis Telecom; Hormuud Telecom; Nationlink; Netco Ltd; Somafone; Somtel; Telcom Somalia; Telesom; Thuraya.

This report provides a comprehensive overview of trends and developments in Somalia's telecommunications market.

The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include:Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Infrastructure developments;
Major Players, Revenues, Subscribers, ARPU, MoU;
Internet, VoIP, IPTV;
Mobile Voice and Data Markets;
Broadband (FttP, DSL, cable, wireless);
Convergence and Digital Media;
Government policies affecting the telecoms industry;
Market liberalisation and industry issues;
Telecoms operators privatisation, IPOs, acquisitions, new licences;
Mobile technologies (GSM; 3G, HSPA, LTE);

1. Executive summary
2. Key statistics
3. Country overview
4. Overview of Somalias Telecom market
4.1 Fixed-line statistics
4.2 International infrastructure
5. Mobile market
5.1 Mobile statistics
5.2 Long-term Evolution (LTE)
6. Internet and broadband market
6.1 Internet statistics
7. Related reports
Table 1 Country statistics 2013
Table 2 Fixed-line network statistics 2014 (e)
Table 3 Internet user statistics 2014 (e)
Table 4 Mobile statistics 2014 (e)
Table 5 National telecommunications authorities
Table 6 Fixed lines in service and teledensity 1999 - 2015
Table 7 International bandwidth 2012 - 2013
Table 8 Mobile subscribers and penetration rate 2000 - 2014
Table 9 Historic - Internet users and penetration rate 1999 - 2004
Table 10 Internet users and penetration rate 2005 - 2015
Chart 1 Mobile subscribers and penetration rate 2002 - 2014
Chart 2 Internet users and penetration rate 2005 - 2015
Exhibit 1 Map of Somalia and Somaliland

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