Analysis of the Somalian telecommunication industry

Analysis of the Somalian telecommunication industry Telecommunication industry of Somalia is a rapid evolution of technology in Somalia and people access to it comes as several telecommunication companies here jockey for customers amid the absence of strong government-regulated phone and internet access. The competition to supply phone service has stocked the nascent revival of Somalis shattered economy and it shows that business can thrive even in one of Africa latest developed markets. Backed by expertise from China, Korea and Europe and funded from their own pockets Somali telecom entrepreneurs are providing in expensive mobile phone service. Users can conduct money transfers via mobile phones and gain internet access, both wireless functions that aren’t widely available in many other parts of Africa. The success of Somalia’s telecom sector is not all that unusual for a war -shattered economy, experts say. In countries with shaky economic foundation, such as Afghanistan and the democratic republic of Congo, telecommu nication is missing infrastructure. The first private telecommunications company to operate in Somalia after Somali government collapsed in 1991, was Telecom Somalia in 1994, Hormud Telecom in 2002 and Nationlink Telecom in 1997, they all offers all telecommunication services, the three companies signed an alliance and interconnection deal in 2005 that allows them to set prices and to control the newly other in entrant companies Like Somafone Telecommunication and others. Hormuud Telecom Somali Hormud Telecom (HorTel) is a privately held enterprise established in April 2002, its head quarter is in Mogadishu, and it expands south and central of Somalia. more than 600 Somali investors have shared in Hormuud Telecom and its leading telecommunication in southern and central of Somalia, and it employs over 4000 people, comprised of full time and part time staff, dealers, etc. Hormud Telecom has received numerous awards in recognition of its grass-roots work in developing the local commun ity welfare such as supporting educational institutions ,social development and charity , provides a variety of telecommunication service such as Fixed line, GSM service and Data service ,E voucher, and Zaad service. Hormuuds chief executive ,Ahmed Mohamed yusuf Started his business selling bread and spaghetti ,he later opened a popular supermarket ,but like his competitors he saw huge gaps in telecom sector â€Å"everyone wants to get in touch with his brother or sister, whether inside or outside the country, to hear the latest news† says the 50-year old CEO. In 2002 he pooled money with friends and investors and launched Hormuud Telecom providing telecommunication and later expanded to bank and mobile money transfer and now Hormuud Telecom Inc has a sales of about $40 million a year.    However Hormuud expands and covers their network all south and central of Somali and they have two trade makers in other parts of Somalia, like Telesom in northwest and Golis in north east . Literature review Innovation is an idea, product or process that is a new to adopter (Hage and Aiken 1973) and other deffination by Damanpour (1991: 556): â€Å"Innovation can be a new product or service, a new production process technology, a new structure or administrative system, or a new plan or program pertaining to organizational members.