3.0 ICT SECTOR STATUS AND OUTLOOK 3.1 TELECOMMUNICATIONS & INTERNET 3.1.1 LAST MILE CONNECTIVITY The public telecom and Internet sector in Somalia is largely composed of mobile operators and their users, which comprise 35-40% of the population, employing about 25,000 Somalis. Currently the market comprises 5 major operators (Hormud, Somtel, Golis, Telesom, NationLink) and two MVNOs (SomNet and SomLink). These are primarily Mobile Network Operators (MNOs) which provide voice and data services, mainly in urban locations and surroundings to about four million subscribers. Golis Telecom, Telesom, SomNet and Hormuud are interconnected, while Somtel is a subsidiary of Dahabshiil and is interconnected with SomLink. Nationlink has a very small market share and Somaphone is dormant, although it has an active network in Mogadishu. Amal Telecom is still becoming established - it has made investments but has not yet launched service. Currently the NCA is engaged in the important process of regularizing the market by negotiating the issuance of licenses to all of these de facto operators. Somalia’s fixed line market has only recently begun to develop, and there are now some high speed fibre access networks deployed to government, business and homes in a few urban locations. Internet uptake in Somalia is relatively low, at about 10% of the population, partly because of the country’s historic security situation, as well as lack of stable energy sources which has hindered the development of the ICT sector, along with limited demand caused by low literacy and ICT skill levels among large groups of the population. Nevertheless, ICT, and mobile in particular, is one of the fastest growing sectors, generating profits and is the third largest industry by employment in Somalia. The key policy objectives for guiding future network development are to ensure that as all Somalis have access to affordable voice and broadband data services that meet international performance benchmarks. It is expected that private operators will fulfill needs for last mile connectivity to most of the remaining unconnected population once cost-effective and pervasive backhaul infrastructure is in place, along with the other key elements of the enabling environment, such as access to sufficient radio spectrum and regulation of companies that have Significant Market Power (SMP) in relevant geographic and product markets. To reach the poorest of the poor in the most isolated locations, additional government support may be necessary. This will be assessed during the bi-annual review of the policy. 11