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Telesom

Telesom is a private telecommunications company founded in 2002 in , , by local entrepreneurs, serving as the leading provider of (ICT) services in the region. It offers a wide range of services, including mobile voice and data, high-speed internet via fiber optics and / networks, and mobile financial solutions such as the ZAAD platform, which was launched in June 2009 as the first service in . With network coverage extending over 90% of and branches in all major cities, Telesom operates an extensive infrastructure that includes sales points and agents in every district and village, making it one of the largest employers in the country. The company has been certified by industry-leading third-party standards and plays a pivotal role in the local economy by supporting in a where over 98% of the population was previously excluded from formal banking services and more than 70% is illiterate. Telesom's ZAAD service has achieved significant milestones, including recognition as a "mobile money sprinter" in 2012 by the GSMA and growing to over 450,000 registered users by June 2014, with female penetration increasing from 17% in 2010 to 31% by focusing on women as key household financial managers. Beyond core operations, Telesom contributes to community development through initiatives like providing scholarships to 40 students in September 2025, sponsoring local events such as the Ceel-Afweyn Peace Cup, and supporting micro, small, and medium enterprises (MSMEs) to foster job creation. Its mission emphasizes delivering high-quality, affordable digital services to enrich community lives, positioning it as a leader in innovative ICT solutions for Somaliland.

History

Founding

Telesom was established in 2002 in , , by local entrepreneurs seeking to fill critical communication voids in the region following its from in 1991. As the first private telecommunications company in , it emerged in a post-conflict landscape marked by the devastation of the , where existing infrastructure had largely collapsed, leaving communities isolated without reliable connectivity. The initiative was driven entirely by local investment, with ownership distributed among approximately 1,500 shareholders, both residents and members, enabling bootstrapped development without reliance on foreign aid or international donors. From its inception, Telesom prioritized basic mobile and fixed-line services to reconnect businesses, families, and government entities in a war-torn environment where traditional communication systems were nonexistent or unreliable. In February 2002, it launched 2G GSM mobile services over the 900 MHz band, marking Somaliland's entry into modern telephony and rapidly addressing the acute gaps in voice communication that hindered economic recovery and social cohesion. Concurrently, the company rolled out fixed-line services, providing nationwide access for essential users such as commercial entities and public offices, which laid the groundwork for broader digital integration in the absence of centralized state support. This pioneering investment, achieved without external financing, not only established reliable coverage but also demonstrated the viability of private-sector-led reconstruction in Somaliland's aid-scarce context, fostering resilience in a fragile post-conflict setting. Over the subsequent years, these foundations enabled gradual evolution into additional services, including mobile money platforms.

Expansion and milestones

Following its initial establishment, Telesom pursued aggressive network expansion in the mid-2000s, extending coverage to key urban centers across such as and to meet rising demand for mobile services. This buildup included the rollout of value-added services and (GPRS) in 2007, which facilitated data connectivity and supported broader infrastructure development beyond . A pivotal advancement came in 2009 with the launch of international roaming services, enabling Telesom subscribers to access networks abroad through partnerships with global telecom operators and enhancing cross-border mobility. That same year, Telesom introduced its ZAAD platform in June 2009 as a targeted response to challenges in the region. By 2010, Telesom had attained full network coverage throughout , solidifying its infrastructure dominance. The company also emerged as the market leader, capturing the majority share of mobile subscriptions—estimated at over 85% as of 2012—and becoming one of the largest private employers in the country, with thousands of direct and indirect jobs supporting local communities. Subsequent milestones included the launch of services in 2011, LTE (4G++) in 2016, and mobile services in 2024, further advancing connectivity in .

Corporate structure

Ownership and governance

Telesom operates under a model that emphasizes broad-based participation from local investors, with 51% of shares distributed among over 1,400 shareholders and 49% held by principal investor Ahmed-Nour Mohamed Jimale. This structure, established since the company's founding in 2002, facilitates investment from Somaliland residents and communities, promoting community-driven growth and economic inclusion in a region with limited formal financial systems. The model has attracted thousands of investors, enabling fluid shareholding that aligns with local needs and fosters reinvestment into community ventures. Governance at Telesom is shareholder-centric, with a board of directors overseeing strategic decisions and emphasizing local decision-making to ensure alignment with regional priorities. The board, which includes figures like Abdinasir Adan Nur, is drawn from the shareholder base to maintain accountability and representation. Leadership is provided by CEO Faarah Sugaal Guure, with former CEO Abdikarim Mohamed Eid, who served over 20 years in the role, now serving as Chairman and guiding the company through expansions while upholding policies for operational transparency, such as regular shareholder communications and feedback mechanisms, particularly vital in Somaliland's developing market environment. This governance framework extends to oversight of subsidiaries, including Dara-Salaam Bank, ensuring integrated management across the Telesom Group.

Subsidiaries

Telesom has expanded its operations beyond through a of subsidiaries that integrate financial, , and other services within the Telesom Group. These entities leverage the parent company's infrastructure to foster synergies across sectors, enabling diversified revenue streams and enhanced service delivery in . The includes Dara-Salaam Bank, Kaabsan , Taaj , Telesom Academy, Somgas (LPG services), TEC ( solutions), Dhaweeye (ridesharing), Kaabsan Batching Plant ( materials), and MATCO (vehicle distribution). Dara-Salaam Bank, a key , was formed in March 2010 as a fully-fledged Sharia-compliant financial institution licensed by the Central Bank of . It focuses on traditional banking products and services, including loans, financing, and accounts tailored for individuals and businesses, adhering to Islamic principles. Kaabsan serves as another prominent , marking Telesom's diversification into non-telecom sectors such as property development and . Based in , it offers residential, commercial, and solutions, utilizing the group's resources to support urban growth in . Inter-company synergies are evident in initiatives like the launch of the Kaafi banking service, a joint effort between Telesom and Dara-Salaam that integrated with financial offerings. This partnership, powered by Telesom's ZAAD platform, exemplifies how subsidiaries collaborate to link and banking for seamless user access.

Services

Telecommunications offerings

Telesom delivers a core suite of services in , encompassing mobile voice, messaging, and broadband , supported by a covering over 90% of the region. These offerings emphasize reliable connectivity for everyday communication and business needs, with prepaid mobile plans forming the backbone for accessible voice and text services nationwide. The company's mobile voice and services operate on a predominantly prepaid model, enabling users to purchase credit; current postpaid rates include local calls and at $0.06 each, while international calling rates begin at $0.45 per minute depending on the destination (as of 2025). Representative prepaid bundles, such as the Kaafiye plan, provide unlimited local voice calls and up to 1,000 messages for a flat monthly fee of $7, with 30-day validity. Telesom's is delivered through an extensive optic , targeting urban households and environments with high-speed, unlimited connections featuring symmetrical and speeds and no caps. Residential and plans offer unlimited high-speed symmetrical , with specific speeds and pricing available via official inquiry. Telesom has deployed services in locations including , Burco, , , , , , Laascaanood, Sheekh, and Wajaale as of 2025, enhancing capabilities. Complementing these, value-added services include international roaming agreements that permit seamless use of Telesom cards abroad for voice calls, , and data, with activation via USSD codes for prepaid users or at sales centers for postpaid contracts. card variants range from standard prepaid options at $1 to VIP plans starting at $10, tailored for high-usage customers seeking premium features like enhanced priority support.

Financial services

Telesom launched ZAAD in June 2009 as Somaliland's pioneering service, licensed by the Central Bank of Somaliland to facilitate secure financial transactions via mobile phones. This innovation marked a significant shift in the region's financial , previously reliant on informal networks, by introducing accessible digital alternatives for money management. ZAAD's core features include instant person-to-person transfers, merchant payments, and savings through dedicated ZAAD accounts, all accessible using USSD codes on basic devices without requiring . The service operates through an extensive agent network for cash-in and cash-out operations, enabling users to deposit and withdraw funds at local points across urban and rural areas. It supports remittances from the , allowing international inflows to be received and disbursed efficiently, which has promoted among populations by reducing barriers to banking in a cash-heavy economy. As of June 2014, ZAAD had over 450,000 registered users, representing approximately 13% of Somaliland's estimated 3.5 million population at the time. As of 2025, ZAAD demonstrates exceptional usage, with active users averaging 30 transactions per month, the highest globally according to . In partnership with Dara-Salaam , established by Telesom in 2010, the company introduced Kaafi as a service in September 2010, integrating ZAAD functionality with traditional bank accounts for enhanced . Kaafi enables ZAAD subscribers to , withdraw, and manage funds directly through Dara-Salaam accounts via mobile interfaces, bridging with Sharia-compliant banking options. This collaboration has extended Telesom's financial offerings, providing users with seamless solutions that combine the convenience of mobile transfers with secure deposit services.

Impact and operations

Economic and social contributions

Telesom employs over 2,500 people, positioning it as one of Somaliland's largest employers and a key driver of local job creation. The company supports workforce development through initiatives like the , which offers programs in (), including hands-on training in networking and routing via partnerships such as Huawei Certified Associate courses. Additionally, Telesom has awarded scholarships to disadvantaged youth, including orphans, to enhance educational access and skill-building, with recent grants benefiting 40 students in 2025. Through its extensive telecommunications infrastructure, Telesom contributes significantly to Somaliland's by achieving over 90% coverage across the , including branches in major cities and agents in every and village. This penetration supports broader economic activity, as the sector plays a vital role in facilitating trade, business operations, and in a country where and s dominate GDP. Telesom's ZAAD mobile money service further amplifies this impact by enabling high-volume digital transactions; users average approximately 30 transactions per month, as of 2025, with the platform partnering with international providers like to handle a substantial share of incoming funds. Somaliland receives approximately $1.3 billion in annual remittances, as of 2020, a critical economic lifeline equivalent to a large portion of GDP, and ZAAD's integration with these flows reduces cash-handling risks while boosting local commerce, such as payments and utility bills. On the social front, Telesom advances through the Telesom , which focuses on , , and emergency to uplift underserved populations. Key efforts include collaborations with Innovate Ventures since 2016 to promote technology-based , fostering skills in a region with limited formal infrastructure. In rural areas, the foundation supports projects by extending agent networks to remote villages and providing funding, such as $150,000 donations for in markets like Wajale and support for displaced communities in Laascaanood. These initiatives enhance by integrating training with practical access to services like ZAAD, empowering women—who comprise 36% of users as of 2024—and promoting inclusive economic participation in rural .

Recognition and challenges

Telesom's mobile money service ZAAD received significant industry recognition in 2012 when it was named one of the Mobile Money Sprinters, highlighting its rapid growth and innovative approach to in , where 98% of the population was previously unbanked and over 70% illiterate. This accolade underscored ZAAD's achievement of 8.3 million transactions in June 2012 alone among 240,000 , averaging 34 transactions per customer monthly, driven by high trust in Telesom and limited alternatives for financial services. In 2024, ZAAD earned the Mobile Money Certification, a global benchmark for excellence in mobile financial services, evaluated against over 300 criteria including customer protection, , and . This certification affirmed ZAAD's role in advancing for millions in the since its 2009 launch, positioning it as a leader in amid sparse traditional banking . Despite these achievements, Telesom faces substantial challenges in Somaliland's unstable political environment, characterized by lack of international recognition, ongoing territorial disputes, and minimal regulatory oversight that allows for coordinated pricing but exposes the sector to accusations of . Intense competition from rivals like Somtel and Soltelco has led to market saturation and recent controversies, including a 2025 synchronized price hike on and mobile services that sparked public backlash and government intervention. To address network security issues, Telesom implemented an System (ISMS) that systematically manages information risks, incorporating for data transmission and storage, as well as to enhance user protection. For expansion into disputed territories such as the eastern , , and Cayn regions contested with , Telesom has pursued infrastructure investments and interconnections, including agreements with international carriers like to extend coverage beyond core areas while navigating cross-border compliance. These efforts have helped mitigate operational risks, contributing to broader by sustaining service reliability in volatile regions.

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