Xinhua cites a statement from NCA director Ladu Wani Kenyi as saying that the hike in rates will come into force on 7 March, in order to safeguard the availability of services and security in the country. south sudan

‘The NCA would like to inform the general public that due to the depreciation of the South Sudanese pound to the US dollar the mobile network operators requested a review of the current tariffs exchange of SSP70 (USD0.5) to SSP170 because the revenues they currently generate cannot cover the cost of their operations and maintenance of networks,’ Kenyi said.

Currently there are two active mobile operators in South Sudan, namely the local units of South Africa’s MTN Group and Kuwait-based Zain Group. A third cellco, Vivacell, was shut down by the authorities in March 2018 for failing to pay taxes and licence fees.

South Sudan has one of the lowest mobile penetration rates in Africa. Growth in the sector in coming years is premised on a resolution to the political crisis and a recovery of the country’s economy. The virtually untapped internet and broadband market also depends to a large extent on the country gaining access to international fibre optic cables and on a national backbone network being in place. Sophisticated infrastructure solutions are needed to reach the 80% of the population that live outside of the main urban centres. With a negligible rate of bank account ownership, mobile payment and banking solutions also have a strong potential once a reliable mobile infrastructure is built.

The limits to growth are currently defined by widespread poverty and a low literacy rate, but the government recognises the positive feedback loop on development that access to ICT can have and is providing a range of investment incentives. The international community has provided billions of dollars in aid to strengthen governance and institutions in the young nation.

Some improvement has followed from the cable link completed by Liquid Telecom in February 2020 which connects Juba directly to the company’s submarine landing station at Mombasa. The cable is South Sudan’s first direct international fibre link and has helped drive down the price of retail internet services for residential and business customers.

BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.