South Sudan’s first local telecom launches operations
South Sudan’s President Salva Kiir Mayardiit launched the first-ever locally-owned mobile telecom company. Digitel, the third telco in the country, plans to connect the network to previously unserved areas. Akol Dok, Economic Analyst joins CNBC Africa for more.
Mon, 19 Jul 2021 10:49:51 GMT
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AI Generated Summary
- Digital's entry introduces competition to the South Sudanese telecom market, driving down prices and enhancing service quality for consumers
- The expansion of Digital's network presents an opportunity to bridge the connectivity gap in rural areas and improve access to underserved communities
- The management team's role in guiding Digital's operations and ensuring competitive pricing while maintaining service quality will be crucial for the company's success
South Sudan has entered a new era in the telecommunications industry with the recent launch of Digital, the first locally owned mobile telecom company in the country. President Salva Kiir Mayardit inaugurated the company, marking a significant milestone for the nation. As the third telecom operator in South Sudan, Digital aims to expand network coverage to underserved areas, promising to enhance connectivity and reduce the cost of data and phone calls. This development has sparked discussions among industry experts and analysts about the potential impact on the telecom sector in the country. Akol Dok, an economic analyst, provided insights into the implications of Digital's entry into the market and the challenges and opportunities it presents. Following the launch of Digital, there are key considerations that need to be addressed in order to ensure the company's success and its contribution to improving telecommunications services nationwide. The ownership structure of Digital has raised questions about government involvement and the level of private sector participation. While details regarding ownership remain unclear, the government has indicated that Digital is predominantly a privately owned entity. The lack of transparency in this area has implications for long-term sustainability and accountability, but it is expected that operational clarity will emerge as the company establishes itself in the market. One of the primary benefits of having a local telecom company like Digital is the potential for increased local demand and ownership within the industry. By fostering competition among existing telecom operators, Digital is poised to drive down prices and enhance service quality for consumers. With Zain and MTN currently dominating the market, Digital's entry introduces a new player that could disrupt the status quo and bring innovation to the sector. The competition among these telecom companies is expected to result in better services, expanded network coverage, and more affordable pricing for consumers. In a country where telecommunications infrastructure remains underdeveloped in many rural areas, the expansion of Digital's network presents an opportunity to bridge the connectivity gap and provide access to underserved communities. The success of Digital will hinge on its ability to deliver reliable phone and data services, particularly in remote regions where connectivity is limited. By focusing on improving network quality and extending coverage to rural areas, Digital can position itself as a key player in expanding digital access and driving economic growth. The management team at Digital will play a crucial role in guiding the company's operations and ensuring that it meets the expectations of consumers. With an emphasis on recruiting skilled professionals and prioritizing service delivery, Digital aims to establish a strong foothold in the market. The company's ability to attract top talent and implement effective management practices will be essential in its efforts to compete with established telecom operators. As Digital navigates the complexities of the telecommunications industry in South Sudan, it will need to strike a balance between maintaining competitive pricing and generating revenue for sustainable growth. The recent tax exemptions granted to Digital have sparked debate around the economic implications of such incentives. While tax breaks may reduce government revenue in the short term, they could facilitate lower prices for consumers and stimulate market competition. The decision to offer tax exemptions reflects a strategic move to support local industry and enhance affordability for telecommunications services. As Digital embarks on this new chapter in South Sudan's telecom landscape, stakeholders will closely monitor its progress and assess its impact on accessibility, pricing, and service quality. The company's ability to deliver on its promises and meet the evolving needs of consumers will determine its long-term success in a dynamic and competitive market. With a focus on innovation, expansion, and community engagement, Digital is poised to reshape the telecommunications sector in South Sudan and drive forward the country's digital transformation.