Suldaanka

Dahabshiil Group, IPO for Somtel Somalia

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cadnaan1   
7 hours ago, Suldaanka said:

I didn't know Mogadishu was stuck in 3G. 4G arrived in Somaliland back in 2012. 

 

This article was probably paid by dahabshiil cuz muqdisho had 4G network since march 2017 provided by sahal telecom and somnet telecom

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Saalax   
9 hours ago, Duufaan said:

Dahabshiil invested a lot of money for properties and tried to become a dominant telecommunications bussines with little return so far. The only area going well for Dahabshiil is the bank sector which has a great future. The rest of his business model had very difficult to gain market share with all the investments he made to upgrades and compete with Jimcaale  groups like telesom partially because he likes to go alone. Dahabshiil is probably running out of cash flow and this is an attempt to collect som deposits. 

 

Bingo he is broke and now begging southerners for a handout cash.

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17 hours ago, Duufaan said:

Dahabshiil invested a lot of money for properties and tried to become a dominant telecommunications bussines with little return so far. The only area going well for Dahabshiil is the bank sector which has a great future. The rest of his business model had very difficult to gain market share with all the investments he made to upgrades and compete with Jimcaale  groups like telesom partially because he likes to go alone. Dahabshiil is probably running out of cash flow and this is an attempt to collect som deposits. 

Somtel faces a lot of competition and they are burning a lot of cash from their money transfer business. It is obvious why they are raising cash from investors because they are unable to sustain the telecom business by themselves. They were too late in getting into the telecom business by buying one of the least performing telecom companies Somtel. This is very risky investment. You should invest money only if you can afford to loose it or wait for a longtime for a return on the investment.

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7 minutes ago, Peace Action said:

Somtel faces a lot of competition and they are burning a lot of cash from their money transfer business. It is obvious why they are raising cash from investors because they are unable to sustain the telecom business by themselves. They were too late in getting into the telecom business by buying one of the least performing telecom companies Somtel. This is very risky investment. You should invest money only if you can afford to loose it or wait for a longtime for a return on the investment.

Every investment has a level of risk, there is no silver bullet investment anywhere in the world. 

Having said that, you are correct in saying that they were late to the party. But indeed they have made substantial investments to match both the reach and quality and in some cases like Mogadishu offer the latest state of the art technology.

They are currently pulling their own submarine cable. Only Dalkom currently have a submarine cable in Mogadishu. Other competition buy wholesale from Dalkom. Hence, SomTel  with their own Submrine cable, they want to become vertically integrated company which translate into offering more competitive pricing not only in the Mobile area but also the Internet Services area.

With regards to your comment about losing money. I think Hajji Duaale was unequivocal about that. He said that the company is now at a stage where it is returning a healthy profit. He has no interest in selling a lie to his potential share holders. 

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