SOMALIA: The Cellphone Effect.

The cell phone is itself a key player in the two decades of civil war in Somalia. By 2000 clan militias and warlords had created enough stability to enable growth in commercial activity. For example, by 2004 three cell phone companies competed to provide service ($10 a month for free local calls, 50 cents a minute for international calls and 50 cents an hour to get on the Internet.) Each new cell phone transmitter installed required that the local clan chief or warlord get a payment. Everyone recognizes the value of the new phone service, after having gone without for years after the old government run phone company was looted and destroyed. As a result, phone company equipment really is protected by the clans and warlords, who do not want to lose their dial tone. The new phone service is cheaper and more reliable than the old government owned landline phone network. This is because there is competition, no government bureaucracy and no taxes (other than the necessary bribes and security payments). There is some fear that if a new government gets established well enough regulations and taxes will greatly increase the cost of service, and reduce reliability. Not yet and for years all of Somalia had better, and cheaper, phone service than any of the other nations in the region. But that’s another story. Even al Shabaab had to respect the cell phone network, even though they tried to shut down cell towers some of the time to avoid detection. Al Shabaab lost that battle. Cell phone service became one of the things nearly all Somalis would fight for.

Heh.