Unstable Sudanese political situation exposing fragile internet sector

Unstable Sudanese political situation exposing fragile internet sector

Sudan emerged as a poorer country when South Sudan separated from it in 2011. Although Sudan has about four times the population of South Sudan, the latter benefits from its control of the majority of known oil reserves.

The Sudanese economy has been affected by hyperinflation in recent years, partly the result of the loss of oil revenue but also due to domestic volatility and social unrest.

The country entered into a transitional administrative period in August 2019 following protests against authoritarian rule, which had included media and internet censorship. Hopes for a smooth political settlement were dashed in late 2021 when a military coup replaced the transitional government, and many political leaders were placed under house arrest. Elections have been announced for July 2023, though much political horse trading needs to be accomplished before such elections can be taken for granted.

The difficult economic conditions have meant that for several years telcos have reported revenue under hyperinflationary reporting standards. Pressure on revenue has made it difficult for operators to invest in infrastructure upgrades, and so provide improved services to customers. Despite this, the number of mobile subscribers increased 6.6% in 2020, year-on-year. This level of growth is expected to have been maintained in 2021, though could slow from 2022 as the particular influences resulting the pandemic begin to wane.

Key developments:

  • Zain Group receives bid for its units Zain Sudan and Kuwait Sudanese Holdings for $1.3 billion;
  • Zain Sudan planning launch of Zain Passport m--banking app later in 2022;
  • Government promotes transition from cash to digital payments;
  • Hyperinflation affecting telcos’ revenue reporting;
  • Sudatel continues with investment plan;
  • Report update includes operator data to Q3 2021, regulator’s market data to Q3 2020, updated Telecom Maturity Index charts and analyses, assessment of the global impact of the pandemic on the telecoms sector, recent market developments.

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Developing Telecoms market report summaries are produced in partnership with BuddeCom, the world’s largest continually updated online telecommunications research service.

The above article is a summary of the following BuddeCom report:

Report title: Sudan - Telecoms, Mobile and Broadband - Statistics and Analyses

Edition: February 2022

Analyst: Henry Lancaster

Number of pages: 116

Companies mentioned in the report: Zain Sudan, MTN Sudan, Sudatel, Sudani, Canar Telecom (Canartel), SudaNet, ZinaNet, Thuraya

Single User PDF Licence Price: US$890

For more information or to purchase a copy of the full report please use the following link: https://www.budde.com.au/Research/Sudan-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses/?r=83