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The Association of Cable TV Providers Raises Concerns Over Unethical Business Practices by Hormuud Telecom in Somalia

by Busines Newswire
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Mogadishu, Somalia- In a astonishing development, Abdalle Ahmed Jim’ale, the son of Hormuud Telecom’s founder, has acquired a local cable TV provider named Asal TV, leveraging both shareholder funds and his family’s substantial financial resources. This acquisition has ignited serious concerns within the Association of Cable TV Owners in Somalia, who accuse Abdalle of employing his privileged position to dismantle competitors in the industry.

Amidst the turmoil, the Association uncovered a leaked classified internal memo that reveals Abdalle’s ambitious plans to dominate the entire cable TV sector, emulating the strategy that Hormuud Telecom successfully employed in the telecom industry. The memo outlines a systematic approach to cornering the market, akin to Hormuud’s past tactics, which eventually led to their telecommunications dominance.

The Association of Cable TV Owners contends that Abdalle’s actions, supported by the financial prowess of Hormuud Telecom, are a deliberate attempt to undermine and potentially eliminate other cable TV providers in Somalia. The association underscores the significance of the cable TV sector, which employs over 2,500 individuals, and warns that Abdalle’s monopolistic strategy could jeopardize jobs and the livelihoods of many.

Furthermore, the leaked memo reveals that, once Asal TV achieves market dominance, there are plans to increase cable TV subscription fees by a staggering fivefold. This revelation has sparked outrage among consumers and intensified concerns about the impact on accessibility and affordability of cable TV services in the region.

The Association of Cable TV Owners, recognizing the broader implications for consumers and the industry as a whole, is intensifying its call for government intervention. They are urging regulatory bodies to scrutinize the acquisition, investigate Hormuud Telecom’s potential influence, and ensure fair competition within the cable TV industry.

As Somalia grapples with this unfolding controversy, stakeholders are anxiously awaiting government action to protect the cable TV sector, its employees, and consumers from what could be a monopolistic and price-gouging scenario orchestrated by Abdalle’s Asal TV and its powerful backers.

The controversy deepens as documents have surfaced indicating that Hormuud Telecom was granted exclusive high-ranging frequencies for their latest cable TV venture, Asal TV. This revelation intensifies the association’s concerns, suggesting that the telecom giant may be receiving preferential treatment from regulatory authorities.

Furthermore, the association alleges that Hormuud Telecom has been involved in unethical dealings with government officials. They claim that the Ministry of Information, Ministry of Telecommunications, and the National Communication’s Authority (NCA) have been receiving kickbacks from Hormuud Telecom, raising concerns about the integrity of the regulatory bodies overseeing the industry.

Finally, the association has called upon the government to intervene, emphasizing that other cable TV providers are licensed taxpayers facing the threat of unfair competition. They contend that Abdalle’s use of shareholder funds and his father’s financial influence to acquire Asal TV amounts to a monopolistic strategy that may lead to the collapse of independent cable TV businesses in the region.