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Yemen.. Conflict between the government and the Houthis over the telecommunications sector

Economy| 28 August, 2024 - 10:46 AM

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The internationally recognized Yemeni government is stepping up its efforts to redraw the vital telecommunications sector, in a move to break the Houthis’ control over the sector, which has generated significant financial revenues since the war began in 2015, and is one of the group’s most important financial resources, raising questions about the government’s success this time in achieving its goals.

The government announced, early August, the launch of the Starlink satellite internet service in Yemen, where the service will be officially launched on September 1. A recent government meeting reviewed the report submitted by the General Corporation for Wired and Wireless Telecommunications, on the details included in the license signed with Starlink and the services that will be provided through the corporation, as an authorized agent to provide the service.

The government confirms the completion of all procedures related to launching Starlink services in Yemen, which will provide satellite internet service at competitive prices for all categories, and at high-quality speeds. It indicated that a broad operation for all Starlink services will soon be launched through the institution’s points of sale distributed and spread across most governorates, through which services will be provided, starting with selling devices, activating them, paying subscription fees at reasonable prices, and providing other services, including direct technical support.

According to a recent report by the UN Panel of International Experts, the Houthis receive 407 billion riyals (about $740 million) from licensing fees for telecommunications, tobacco, and other companies. According to the latest report by the Yemeni Ministry of Communications and Information Technology, Yemen is witnessing an increasing spread of communications, with the total number of mobile phone subscribers reaching about 17.7 million, distributed among all companies providing this service. The number of internet subscribers also exceeded 402,000 by the end of 2021, while the total number of mobile internet subscribers approached ten million.

According to the ITU Data Hub , a website specializing in communications and information technology data, Yemen recorded 17.7% of the population using the Internet in 2023, indicating limited growth in digital access compared to many other countries. 15% of the world's Internet service passes via satellite, and 85% via submarine cables.

Telecommunications expert Ziad Al-Naaman told Al-Araby Al-Jadeed that if the Internet is operated via Starlink, it will represent a qualitative leap in the telecommunications sector, as the expected speed of the service may range between 50 and 200 megabytes per second, which is much higher than the current speed. However, there is a problem, which is that the price of the Starlink device exceeds the purchasing power of Yemenis.

Al-Naaman confirmed that the price of the device could reach a minimum of $600 if it is officially introduced, adding that the service, if officially launched, will allow Internet access to all public and private facilities as well as remote and rural areas, and will eliminate the problem of weak Internet in Yemen.

Official data estimates the percentage of Yemenis connected to telecommunications networks at about 60%, with the average mobile internet speed not exceeding 1 megabyte per second, compared to the global speed of more than 30 megabytes, despite the launch of the fourth generation service in Yemen about two years ago. However, according to many users, the modern technology has not made any tangible addition to improving the internet service.

The legitimate government had previously sought to wrest the telecommunications sector from the hands of the Houthi group. In September 2018, Aden Net was established as the largest government project in the telecommunications sector, by government decision, at a cost of $100 million, to cover the deficit in the internet service provided by Yemen Net, and to break the Houthi group’s monopoly on the telecommunications sector.

However, this project did not succeed, which prompted the government to conclude a memorandum of understanding with the UAE at the end of 2022 allowing Abu Dhabi to invest in the telecommunications sector in areas under government control, while a number of parliamentarians objected, as 37 members of the House of Representatives signed a memorandum in which they considered the government’s sale of Aden Net to the UAE to be invalid and contrary to the law and the constitution. The Yemeni constitution stipulates that agreements involving foreign parties must pass through the Yemeni House of Representatives and be approved.

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