Satellite Internet Licensing Opens New Business Investment Opportunities

Somalia’s Telecommunications Sector: New Opportunities and Legal Considerations

Recent developments in Somalia’s telecommunications sector present significant opportunities for businesses and investors. After four decades of practice in Somalia’s legal environment, I observe these changes will reshape how companies operate in our market.

The most important development is Somalia’s licensing of Starlink as an Internet Service Provider on June 6, 2025. This decision by our government creates new possibilities for businesses that previously struggled with connectivity issues. Minister Mohamed Adan Moalin stated this supports our digital inclusion goals, ensuring all Somalis access affordable internet services.

However, businesses must understand the practical realities. Starlink’s monthly costs of $80-$120 exceed what most Somalis can afford, given our average annual income remains under $500. This creates a market opportunity for companies that can bridge this gap through innovative pricing or business models.

The National Communications Authority hosted Universal Acceptance Day on May 17, 2025, focusing on digital inclusion. This event brought together government officials, telecom operators, and technology companies. The emphasis on Internationalized Domain Names and Email Address Internationalization shows our regulatory bodies are preparing for expanded digital operations.

New tender opportunities also emerged, including a 55MWp solar power plant project for BECO at Jazeera Power Plant. This infrastructure development signals growing energy support for telecommunications expansion.

Legal and Business Implications

These developments create several important considerations for legal practitioners and businesses:

• Regulatory Competition: Existing ISPs and telecommunications providers must review their competitive positions as Starlink enters the market
• Infrastructure Investment: The solar power projects indicate government commitment to supporting telecommunications infrastructure
• Market Access: Improved connectivity opens previously underserved areas to business development
• Economic Context: The IMF’s recent agreement on Somalia’s Extended Credit Facility shows economic stability, though growth is expected to slow from 4% to 3% in 2025

The IMF review provides important context. Somalia’s inflation decreased to 5.6% in 2024 and should reach 4.9% by 2025. However, foreign aid disruptions and irregular rainfall create downside risks that may affect telecommunications sector investment.

For businesses considering telecommunications investments in Somalia, I recommend focusing on affordability and accessibility. The gap between Starlink’s pricing and local purchasing power presents opportunities for companies that can develop cost-effective solutions.

The National Communications Authority continues developing our ICT sector through initiatives like the National Emergency Telecommunications Plan. This regulatory framework provides structure for businesses entering our market.

Companies should prepare for increased competition while recognizing the expanding market opportunities. The government’s digital inclusion strategy, combined with improved infrastructure support, creates favorable conditions for telecommunications investment.

Based on my experience, successful telecommunications ventures in Somalia require understanding both the opportunities and constraints of our market. These recent developments indicate positive momentum, but businesses must develop strategies that account for local economic conditions and consumer needs.

Sources

• https://nca.gov.so/nca-ta-0261-2025/
• https://satelliteprome.com/news/somalia-licenses-starlink-to-boost-nationwide-internet-access/
• https://www.imf.org/en/News/Articles/2025/05/16/pr25150-somalia-imf-staff-completes-sla-on-the-3rd-review-of-the-ecf-arrangement
• https://www.globaltenders.com/somalia/so-telecommunications-tenders
• https://nca.gov.so/nca-hosts-universal-acceptance-day-to-promote-digital-inclusion/