Monday, 28 October 2024

Somaliland Aspires to Lead Africa in 5G Development

Somaliland is a self-governing region that declared independence from Somalia in 1991, although its sovereignty remains unrecognized by both Somalia and the international community. With a population of around 3.5 million, Somaliland operates with its own government.

In recent years, Somaliland has made significant strides in developing its telecommunications sector. Companies like Telesom and Somtel have played key roles in providing affordable mobile phone services and high-speed internet. Mobile banking services, such as Telesom’s Zaad, have transformed how people manage financial transactions. 

However, internet access in rural areas remains limited, and connection speeds in urban areas still fall short of global standards. Despite these challenges, Somaliland is one of the first low-income nations, particularly in Africa, to adopt 5G technology. This development offers a unique chance to bypass traditional broadband infrastructure, potentially delivering faster, more reliable internet services and driving technological progress.

Somtel introduced 5G in Somaliland’s capital, Hargeisa, in partnership with eDahab, the leading mobile payments provider in January 2024. The company claims to be the first operator in the region to launch a 5G network. Other African nations that have rolled out 5G include South Africa, Uganda, Kenya, and Nigeria.

Founded in 1998, Somtel is a publicly traded company registered in the British Virgin Islands. Since 2008, UAE-based MTO Dahabshiil has owned approximately 95% of Somtel's shares. The eDahab money transfer service operates through Somtel's SIM cards and Dahabshiil’s money transfer platform. Somtel has previously introduced 4G to the region, implemented VoLTE and eSIM technology, and launched Bluekom Fiber services.

Meanwhile Telesom also launched their 5G network again in January of this year. According to Telesom chairperson Abdikarim Eid  Somaliland’s 5G rollout reflects the country’s resilience and commitment to a better future. “We’ve launched ahead of 36 African countries, many of which have stronger economies than ours,” Eid stated. “Our goal is to provide subscribers with near-instantaneous download speeds that will boost local industries, including education, healthcare, transport, and agriculture.”

With download speeds reaching 1,016 megabits per second, Eid envisions Telesom’s 5G network unlocking new possibilities, driving innovations like smart farming, remote surgeries, and immersive virtual reality education. “It’s not just about speed; it’s about opening a new era of opportunities for our people and preparing for the future,” he said.

Affordability will be key to widespread 5G adoption, but Somalia, including Somaliland, is already among Africa’s top five countries with the most affordable mobile internet. According to the 2023 Worldwide Mobile Data Pricing index by UK-based Cable, Somalia has the cheapest mobile internet in East Africa, with an average of $0.50 per gigabyte (GB) and the lowest provider offering just $0.19 per GB.

Somaliland’s journey to 5G has not been easy. The country faced conflicts last year and continues to deal with militia threats, which have slowed infrastructure development, including the expansion of high-speed internet.

With extensive coastlines, Somaliland and Somalia have access to undersea fiber optic cables, but fiber internet is largely concentrated in urban areas. Eid noted, “Telesom’s fixed wireless access (FWA) using our 5G network will allow us to bring high-speed internet to areas beyond the fiber network in every city we serve.”

Despite a high internet penetration rate of 95%, Somaliland’s 5G rollout may face challenges, particularly due to the relatively high cost of 5G-enabled devices, similar to what Kenya has experienced.

While analysts estimate that 5G could add $2.2 trillion to Africa’s economy by 2034, the impact will depend on how quickly the private sector integrates the technology into business. As 5G spreads across Africa, one thing is clear: Somaliland is now a key player in the high-speed internet revolution.

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