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Somaliland, which declared its independence of Somalia in 1991, enjoys a relatively well-functioning civil society and peace. ICT usage is still very low, but with clear development potentials associated especially with the presence of telecommunication companies from neighboring countries, expatriates engaged in the universities and other sectors, and the presence of five telecommunications operators and several VSAT operators.

There is no telecommunication regulatory institution in Somaliland. There is consensus among actors that it would be desirable, but Somaliland is at the beginning of the institutional creation process.

The competition in the telecommunication market is “a negotiated competition”. All operators cooperate in the Somaliland Telecommunication Operators Association, where they agree on prices and give information on this to the Ministry. Prices are uniform and adjusted according to inflation and the exchange rate to the US-dollar.

Fierce competition has driven consumer costs down; international calls on mobile phones cost $1 U.S. per minute or less, five or six times lower than in most African countries. The low prices for international calls may be seen as a combined result of real “competition”; low economic level/development and no public intervention.

Satellite technology is playing an instrumental role in Somaliland. Based on 2002 prices, it has been shown that a VSAT-based asymmetrical 128/64 connection in any given location in Somaliland costs $0.058 per minute, assuming the connection is used 24 hours per day, seven days per week. Further, the connection may be shared by several PCs and the “per minute charge” can then be lowered accordingly. A tele-centre scenario in Somaliland showed the rate per PC to be $0.005 per minute.