Business
SOMALILAND: SomTel Officially Launches Operations
March 7, 2010 · 34 Comments
HARGEISA (SomalilandPress) — Dahabshiil’s SomTel International launched services on Saturday as Somaliland’s sixth mobile phone and internet operator. SomTel International, which is expected to play a major role in the telecom sector of Somaliland has been the talk of the country in the last few months because of its parent company Dahabshiil, the largest remittance company in East Africa.
Speaking at the opening ceremony, managing director of SomTel International, Mr. Hirsi Hassan told the guests of honors at the reception that the company will offer customers a high speed internet service and cheaper domestic and international phone rates. When it comes to technology Mr. Hassan said, SomTel International will not be digging the grounds nor will hang wires in the middle of the streets but rather it will deploy wireless technology.
The telecommunication industry in Somaliland has been thriving in the past few years because of the needs to communicate with family members in the Diasporas. The Fierce competition in the telecommunications industry will limit price increases and benefit Somaliland consumers. Somaliland consumers already enjoy one of the lowest prices in Africa, for instance; international calls on mobile phones cost $0.30 U.S. per minute or less, five or six times lower than in most African countries.
The ceremony was attended by hundreds of people including government officials, the opposition leaders, traditional and religious leaders and others. During the ceremony the company distributed a number of free phones so as to engage the customers to use the company’s services.
Mr. Hirsi Hassan informed the audience that a healthy completion is always beneficial to the consumers and therefore they should take full advantage of company.
Somaliland already has other strong telecom operators such as Telesom, Telcom, Africa Online, NationLink and Soltelco.
SomTel held similar ribbon-cutting ceremonies around the country.
Dahabshiil, which has more than 24,000 agents and branches in 144 countries, plans to introduce banking systems including ATM machines in the country. In late 2009, it rolled out electronic banking in Hargeisa teaming-up with leading Somaliland retail stores. Dahabshiil also opened an Islamic bank in neighbouring Djibouti in early 2009, Dahabshiil Bank International.
Both companies were found by Mr. Mohamed Saed Duale.
SomalilandPress.com, 7th March 2010
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By Mo Guled
Tags: Dahabshiil, Somalilandpress, SOMTEL, Telecommunication in Somaliland
Readers Comments (34)
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This is the type of business that we need in Somaliand to create jobs for our youth. Keep up the good work Mr. Duale.
i believe that somaliland sector of economic is booming in noways especially in telecommunication and this good news for every body of somalilanders.
the opportunity will promote our society to get job and income of the employee will increase in our level of the net income of the country
I believe the government of Somaliland should look deeper the way Dahabshiil do business with its pears. The industry of Telecom do not have big market base in Somaliland due the size of the country and its people. Any market share Somtel gain it is deducted other telecom companies that exist before them. I notice the past couple years the Dahabshiil group are getting to any business they can make money and adding their file to telecom will finalize they are heading to monopoly company. I urge the government of Somaliland to create a completive market where every firm has share market which also benefits the consumers in the long run. Who is protecting the consumer’s interest? I know some of you will say they are bringing new jobs, but they are closing existed business and just shifting their employees toward their company. So how does that benefit the people seeing one business close and other open?
Abdi, I understand your point and completely agree that the consumers should be protected, while also small businesses should get some kind of insurance, because many of these small businesses are fundamental to the survival of many Somalilanders in the country.__However, Dahabshiil is a private organisation and it is doing great by the people. Dahabshiil employes thousands with secure and well paid jobs. We can only hope the company expands to offer more jobs to the local people.__Companies like Dahabshiil are not taking advantage of the people. On contrary, they are great help to us. It is the government who is incompetent and letting the people down. __
I think Telecom is one of the most promising sectors of the economy at the moment and it will only grow from here.
I can say that Dahabshiil and Telesom are two great companies that have greatly contributed to our society and as customers and as fellow country men and women we thank them and I hope SomTel (Somaliland telecom) will join them too.
Dahabshiil is modernizing Somaliland society so is Telesom with its other sister-companies such as SomGas (Somaliland Gas), which was created to stop the burning of trees as charcoal or energy.
Great competition and great companies!
But I think they also need unique names because SomTel, Telesom, Telsom are starting to become confusing names. I think while its early SomTel should change its name to DahabTel.
Salam alaykum.
I am husein mahamed haji rabi . I am in malaysia of more then then years.
It is realy a mind blowing and breath taking job off the men on the nation . Mr Dahabsheel ( mahmed saed ) well done brother.
But one thing i didnot see Were is the Malaysian connection . I have good knowlege her in KUala lumpore that we bring Malaysian to the country and i dnot see then in the ceremony . PLs my somaliland press see to IT. We must say Thanks to the Malaysin guys who being there for the telecom job of dabsheel.
lastly .. i am soo happy to see the best in somaliland .
Dr husein mahamed haji
huseinhaj@gmail.com
Kuala lumpure -malaysia
Malaysia is important nation for Somaliland, so many students go to Malaysia to study with Somaliland passport and Dahabshiil has very good relationship with the people of Malaysia. I know this.
I know for sure Mr Mohamed Said Duale is always grateful for Malaysia and I agree Somaliland should engage more with Malaysia.
Keep up the good work Dr Hussein, I have been to Kuala Lumpur before and its wonderful place with so much energy and great hospitality.
The the domestic market (3.5m) in the long term, will not provide sufficient opportunities for growth. Successful industries in Somaliland should seek to expand into other (east) African markets as to increase their customer base and profits. If the return on investment is healthy, this will allow for further growth and diversification.
Anyhow, Dahabshiil is diversifying it's portfolio and becoming somewhat of a conglomerate, a very notable Somali success story, bravo!
Too bad that Somali people and Somalil businesses keep circling around the same ideas.
Dahabshiil has already invested in Djibouti, I think it needs to look into the Ethiopian market because that's the next big thing with over 100 million people expected by 2015-2020.
I think Dahabshiil would do very well so would Telesom.
But right now the hottest market in Ethiopia is farm lands perhaps Dahabshiil should start investing in lands in Ethiopia to grow crops.
That should be it's next portfolio before it's too late and even it does have to grow any thing for now it could just keep the land and resell it later at much higher price.
Dahabshiil got to Ethiopia farm lands they have plenty of fertile land with plenty of fresh water and irrigations.
Good for Dahabshiil. Now since there seems to be no shortage of telecommunication companies in Somaliland isnt it time to invest in other sectors of the economy like agriculture? Infustructure building? Water? Electricity? Roads? Oil expoloration off the coast? and as some here suggested the neighboring country of Ethiopia has huge potentials in terms of investment, last month it overtook Kenya as the economic powehouse of East Africa.
It is always good for consumers to have choices and when consumers get more than three provides of any kind of business they are the winners. On the other hand, when four campanies already or more are doing same things, it may be better to come up other idea or business people need. Otherwise, it will be like following some one else is idea without doing research. That would make the market very tight and tomorrow these companies will compete untill they all fail.
If you country man brings shoes that people need, you need to bring food that people need. In other word, invest where is open first until you get no place. Hadii kale haduu qof xaabo loo baanhaa soo dajiyo, dhamaantiin xaabo wada keena kkkk.
Dahabshiil is important company in Somaliland society, its more than a company it gives Somalilanders from all works hope always because a small company like Dahabshiil became international firm with over 400 branches around the world.
Today all Africans use Dahabshiil instead of things like Western Union to send money to their loved ones.
There were times when Somaliland people were displaced in the remote areas of Ethiopia in refugee camps, the only way to give them hope and make them smile again was through Dahabshiil, it will always be part of us.
Yes I agree with most people here telecom is tight industry and Telesom and the other players were already doing good things for the people but what most of you forgot is SomTel existed since 1998 and it operated in eastern parts of the country (Togdheer and Sool). It's the first company to take operations to Las Anod.
Dahabshiil wants to no longer relay on remmitance and its great, they should also explore the Ethiopian market as well as investing in agriculture perhaps bringing the right equipment and hiring to farmers etc.
Dahabshiil is great company and its leaders are operating with a long-term growth in mind. Company like Dahabshiil is not afraid to take a risk to create financial security to the people of Somaliland. I concur a company that size should diversify their portfolio in order to achieve their financial goals.
congratulion somtel and the stuff
somalilandpress is the best one in somaliland.
viva somaliland
Viva Dahabshiil Viva Somaliland
no doubt free and open market system is important to a nation's economic success, but taking consideration into somaliland's limited industry capacity it's crusial to have a government involvement here interims of regulating and supervising the enterprises.
i believe that the telecommunication sector was getting oversaturated for the last couple of years while growth of demand does not exist at all, however the risk of business failure is inevitable, therefore, as i suggestedt ministry of trade involvement is necessary.
somalilander
Toronto
"special note to Dr. hussein haji rabi,,, salams to you, friend,,,long time no c"
I think Somtel will be the end of Dahabshiil Group. because telecom sector is saturated and there is no potential market for new entrants. So i think it will be better for Dahabshiil to invest in the industries that need investments like Cement factory, instead of investing in the Vacuum.
therefore, "Never invest in any idea you can't illustrate with a crayon".
A.S.
Hargeisa
Somtel was intended by dahabshiil as a tool to counter attack Zaad. If anyone expect Somtel to provide excellent telecommunication service, one will 100% be disappointed. Dont trust my words? just get their card and make a call, especially an international call, and see for yourself how terrible is their voice quality. On top of that, their coverage is not even half of telesom.
As for job creation, as long as Mr Hirsi remained, anyone out of the clan will stand very little chance to get a position in Somtel. The first thing Mr Hirsi took over as CEO of Somtel is to fire the Human resource Manager. This move is to ensure that no one interfere when he recruit based on clan and relationship, instead of merit. That also explain why their service is such low quality because not many skilled employee works for them.
You don't sound like an "insider" to me but rather someone who is bitter, whatever happened happened man you dont always get things your way in life.
Zaad was created in 2009, SomTel was founded in 1998 in Burao. They never expanded to other parts of the country because they were occupied with other portfolios that would become the back bone of SomTel such as the Islamic Banking etc.
Now that's out off the way they feel it's time to expand SomTel besides Telecom wasnt hot industry in Somaliland but I guess they feel its time to make move.
SomTel is investing in wireless technology, you never used it.
You are just big lier because in Somaliland everyone uses two system (telesom and Telco (I think one is 48 and the other is 45 or something).
SomTel is not at same level as Telesom.
Personally I love Telesom but I dont like people who hide behind the screen and bad mouth others.
Last time I checked Dahabshiil didnt hire people based on clan, so why would they for SomTel, they already know how to run a business.
Get over it man…
I dont know why u called me a liar, which part of what i wrote is lying? FYI, I was 100% inside, Mr. Smart@ss. I am so inside i helped build their network!!
By the way, i called you smart@ss because you pretend to know but in actual you dont. After reading your post, one cant help but asks;
1) Why they never expand their services to other part of the country in the first 10 years after they launched?
2) why is it after Zaad was launched, only then they started to make their move aggressively?
3) If telecom business is not hot, why get involved in the first place?
I never use Somtel's wireless technology? another smart@ss remark….I think i probably use the most up until they officially launched it. My question is, have you used it yourself ? Do you know anything about their line quality? if not, i suggest u get one and try it yourself..
Did i say anything about dahabshiil hire based on clan? go back and read my previous post word by word, make sure u understand what i wrote before you answer to my post. (now u know how deserving you are to be called a smartass)
The only thing you are right about me is… Yes, i am bitter.
It's clear to everyone you have issues and we know people like you. There are those that brag and claim other's works and then there are those that just do the work. You happen to be the first one.
Your properly some where in Europe, you never used Somaliland telecom lines and have no idea – you just looking for reasons to attack.
Your whole argument was that "Dahasbhiil wanted to take ZAAD" then you talked about them hiring based on tribe now your changing your mind. You cant say SomTel is dahabshiil on one thing and its not on another.
Dahabshiil doesnt hire based on clans, it works all across Somali speaking lands and as far as Darfur while your mind is "I cant get a job because they hire on tribe" – you seem like a grown man get qualifications.
SomTel is Dahabshiil and Dahabshiil is SomTel, both companies have the name, promise and signature of Mohamed Saed Duale.
Get your degree I am sure they will hire you in the mean time keep attacking people behind the screen with a name like "Insider" – people face them and have real name and face.
Am i looking for reason to attack? Yes, i am. However, my attack is based on facts! And the facts is, Somtel has got lousy telecommunication services, they make false claim that their technology is the best in somaliland, but once you get one of their USB dongle for internet connection and try it out yourself, then you'll know they are lying! Or easier, just get their Sim card and start making phone call and see for yourself, they are using VOIP for their international connection!! The whole world know the quality of VOIP. In most country, you get it for free because the quality is so bad!! But maybe somtel think they can take Somalian for a ride?
As for hiring issue, Do you actually think Mohamed Saed Duale decide who to hire? Do you think he even bother to look at daily operation of somtel at his level? only a fool like you think so!! Yes, Dahabshiil owned Somtel but Somtel is not Dahabshiil!
Do you know how many new staffs were hired without going through proper HR procedure after the new CEO took over? Do you know those guy were confirmed hired (by the CEO) then only go through interview process by respective department head? Why dont you go and find out first before you open your big mouth and make a fool out of your self?
So far you only argue with "name calling" and "attention diverting" techniques, you call me liar, ask me to get a degree, claimed that i hide behind the screen as if you reveal yourself to the whole world, make ambiguous statement like "dahabshiil is Somtel, and somtel is dahbshiil, but you avoid my challenge to test out their network, you refuse to answer my questions cos you know if you try to answer my questions, the truth will reveal.
Most importantly, you argue without facts! I presume you are also a grown man, so, can you support your claims with facts? Maybe you are also politician, like Hersi used to be, thinking that you can just fool your way through by coming out with promising and cogent statement plus a little bit of personal attack?
I am well aware of how things operate or run in the modern world and that is why im not barking like you behind the PC like little chihuahua. Some people just do it some just bark after others.
Usually in our culture only divorced lady would tant a man's name like that – if you have issue with this "Hersi" there is number on their website call him and deal with him like a man dont come here claiming to be "insider" and get all emotional on us.
That's my last reply to you mr attention seeker. Harmless chihuahua – properly in EU getting welfare while "Hersi" constructs the country.
Another ambiguous and name calling reply.. Is the word "Fact" so hard for you to comprehend?
Are you sure u are aware of how thing's run in modern world? FYI, Telling the truth to the world through internet is one of them.
Why are you so eager to defense Somtel? Are working for them? or Dahabshiil? Or is it because you were paid off with a free dual sim phone?
Anyway, Somtel hired its staffs based on connection is already a well known fact in Hargesia, people on the street are already talking about it. Soon, ev1 in somaliland will also comes to know how lousy is their service. You can belittled me as much as u want, but i wonder how "Man" are you to show your true identity, instead of hiding behind the screen like me, so people of Somaliland will know how big a liar you are when the truth reveal?
SomTel is one of the best of the best in communication business. I remember the first year they started business was 1997 and they opened their first office in Las Anod and then the states next door. They're now called in Las Anod "The mother of all telecoms"
there is no doubt that somaliland is stepping towards potential development because of few businessmen like dahabshiil. i think we have already experinced quite lot of communication industries, this time it would more important to invest another industry for instant bringing factories that produce the daily live subsitances needed, but i agree thos e who said there would be employement opportunities.
Development is nothing if people are not organised by government with long term planning. The whole country esp. the cities are a death trap with all the electricity wires hanging from every pole. Rather than every independent electricity provider expecting to spread his wires, they should get them to supply to a network instead and leave the rest to a public run electricity grid.
In Asia including ME, if you view cities including Damascus from am eagles eye. You will see endless dishes covering the whole country as they every little kid buys a satellite dish to watch in their rooms.
Rather than people paying their money to China, the Syrian government should have organised a cable network to bring these channels using the same amount people wasted on purchasing satellite dishes.
Thank you everybody.
Really I'm Telesom Company Engineers, and I much grateful Somtel Internataional to make Competition between us. We are the biggest and best Telecom Services In Somaliland we have ten years Experience no one have. we have the Customer Capacity, and our services very nice, We should be expect another extra services this June Insha allah. Our Company trust free market and livehood.
Thank you.
Hussein
Greetings all,
Initially, I was disappointed Dahabshiil would invest in the Telecom industry rather than another industry which would benefit our country. But now, I feel Somtel will bring in more competition which will force other companies to better their services and to be careful with their next price increase, so this is great for me, as the customer. Also, new to me is Somtel exisited for over 10 years in eastern regions. I love Telecom, mainly b/c I know people there and get good service, but the average Somaliland will benefit for this competition. More power to Dahabshiil and the rest of the Telecom companies..
The Only reason Dahabshiil is renovating and extending it's coverage Through Somtel is to compete with Zaad. Because Zaad service is huge threat to Dahabshiil's serivce. But Dahabshiil Should have faith with it's long experience in Finincial industry. I wouldn't switch to Somtel cause I don't expect quality of service.Their main Objective is to have Zaad like service.
daahabshiil wont survive this time….they got no vision.
why they never invested in other sector, like cement, fishing,movie industry,
gabilley agricultur. this time its just for the short term
Viva Somtel and Dahabshiil.
Mutacalimiintaydaw noolaada.