Geeska Afrika Online

Somalia: The giant Somali telecommunication companies linked services

Mogadishu (HAN) July 23, 2014 –Telecommunications and Cyber news. In Somalia telecommunications revolution has taken place despite the absence of any functioning national basic services or government institution  since 1991.

The three giant  phone companies are engaged in fierce competition for both mobile and land line customers, while new internet cafes are being set up across the city and the entire country.

according to the Geeska Afrika Online reporter in Mogadishu, International calls cost in Somalia less than 25 US cents a minute, while surfing the web is charged at  30 US cents average an hour – “the cheapest rate in Africa.”

the three giant Somali telecommunication companies namely Hormuud, Somtel and National link have signed cooperation agreement. The three said in a joint released press conference that the cooperation will pave way for easy communication of their customers across the three networks in Somalia.

The three giant companies have also agreed to form Somali telecommunication company (STC) to urgently implement and facilitate the pact between the telecommunication giants in the country.


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3 Responses to “Somalia: The giant Somali telecommunication companies linked services”

  1. Sitivene

    Stephen Liddle · Universities of Sydney, Auckland; Massey, PNth

    This spin – actually it is propaganda – makes it sound as if these companies are doing the country a favour when it fact they are paying little or no tax, are extracting profits from infrastructure they took over for nothing and by practices that exclude whole-country coverage. They have more available money than the government and they got it from the people.The cheapest in Africa when in many cases you need three different mobiles, are milking the country dry! The World Bank said they should pay 8.5 million in tax based on their income, costs and some recognition for providing a service but don’t let them kid you they are corporately responsible or even paying their fair share. They paid 400 000.

  2. Edow

    It good news and I hope that Somali telecommunication will develop and do their advanced technology for wreckage war country where all infrastructures were destroyed and the guy named Stephen is the one who wants not to do any development in Somalia.
    Stephen said ” they have more available money than the government and they from the people” so I’m asking him is that a tax ? The another question is do you mind to serving the people cheaper telecom?

  3. Sitivene

    I agree. Any genuine competition bringing down prices in an open market is usually regarded as a good thing. Yet communication is a captive market and a cartel – even six companies can ensure competition can cartel stay within a unspoken (and often spoken) band of prices.

    There are misrepresentations here and the ‘cheapest in Africa’ story is free advertising at least, because relative costs are all important and we have no information about these. Because the companies refuse to give this information and be properly audited. And is, at worst, misinformation. What other services are they not providing?
    If 22 years ago businessmen took over the infrastructure paid for by the people they may possibly be congratulated for providing a service that chaos and warlording made impossible. But if you are making exorbitant – or even excessive – amounts of money (who can know?), while denying any regulation, and not paying tax on earnings, do not put out stories that paint you as the peoples’ friends running a social service, or as if positives outweigh the negatives. Surely only transparency and reasonable tax based on income can truly help an independent, connected Somalia.
    And why do these companies not allow sim cards to be regulated (presenting ID for them) so those using phones for anti-security or subversive purpose can be monitored? Why do they not follow ITU regulations about offering services to all.
    Sure, cheapest in Africa. But more importantly, the most unregulated in Africa. And the world. Which even if you mean well, allows others to subvert not just the government but law and order and therefore the good of all the people?

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