Somali mobile phone firms thrive despite chaos

By Abdi Sheikh and Ibrahim Mohamed

MOGADISHU (Reuters) - Somalia's mobile phone business is booming despite the almost daily artillery fire that flies over expensive satellite dishes and the violence that has brought misery to the population of the Horn of Africa nation.

The three largest firms, Hormuud Telecom, Nation Link and Telecom Somalia, have a combined 1.8 million mobile users who enjoy some of the world's cheapest calling rates, allowing them to stay in touch with their loved ones amidst the conflict.

"This business is very important during this time of conflict when everybody wants to know what is happening at every moment. It is a way of survival in every conflict zone," Ali Ahmed Nur, managing director of Nation Link, told Reuters.

"Running a business in Somalia is very risky. Sometimes our employees cannot get to work because of insecurity," he said.

Besides being crucial for keeping in touch with family, insurgents say they receive orders for attacks by text message, African Union peacekeeping soldiers are bombarded with threatening calls from rebels and government depends on mobiles.

One telecoms firm is also expanding its network to coastal ports used by pirates, who make thousands of dollars from ransom payments from ship-owners but have to rely on expensive satellite phones at the moment.

Despite the tough environment, the sector has attracted investment from wealthy individuals and Somalis living abroad.

With mobile phone use at about 18 percent of the population, Somalia lags its neighbour and east Africa's largest economy Kenya, where it is above 40 percent, but it is ahead of several other poor African nations.