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Perspectives of starting a GSM termination business in Djibouti
Perspectives of starting a GSM termination business in Djibouti
30-Oct-2019 08:07

Perspectives of starting a GSM termination business in Djibouti

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Djibouti is a state in East Africa with a local population of about 0.978 million. Many African countries are becoming excellent destinations for voice traffic termination, thanks to expensive international calls and cheap local calls. We will find out whether Djibouti is suitable for work in this business area.

As of 2019, cellular penetration in Djibouti makes up 41% (approximately 400 thousand connections in the country). There is one GSM operator in the market, the telecommunications company Djibouti Telecom. It provides mobile communication services under the Evatis brand. In parallel, Djibouti Telecom provides the landline telecommunications services and Internet access.

Djibouti is one of the last countries in the world where a national operator’s monopoly for all telecommunication services is allowed. The lack of competition in Djibouti's mobile market has contributed to the formation of high prices for mobile communications as for Africa. But GSM coverage is good almost throughout the entire country.

Calls to local numbers are also expensive, but there are special offers within which the minute of an outgoing call can cost up to $0.009. There are also top-up bonuses. Theoretically, the terminator can earn up to $50 from each GoIP gateway channel, provided that a profitable package is selected for calls and traffic offers are available. Since Djibouti is a small country with a small population, it may be difficult to deliver international minutes for landing.

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