The impact of telecommunication on the economic development of Puntland, Somalia: A case study of Somtel Telecommunication in Galkaio.

ABSTRACT The study on the “Telecommunication Companies and Economic Growth” was carried out in Puntland State of Somalia, with specific aims of examining the role of telecommunication company in improvingpeople’s standard of living creation of employment and in improvement of health and education. Areview of related literature was carried out on already existing information on the specific aims of thisstudy as a way of comprehending the problem as well as enriching and supplementing the study findings. This was through quantitative and qualitative research designs under which questionnaires and interviewswere administered to a sample of 98 respondents who were both randomly and purposively selected. It was established that, the telecommunication company has improved people’s standards of living through improving their business performances, getting people closer to each other irrespective of distance, promoting enhancement of research, improving market opportunities, creation of awareness, improved on the use and application of science and improving the people’s ability to save. In addition to this the telecommunication company has created jobs such as recruiting on merit, building capacities of the young people, direct and indirect job creation and developing ICT while in the health and educationsectors, the company has paved way for Corporate social responsibility enabled on-line courses providedscholarships construction of schools and health centers, donated computers as well as rehabilitatedchildren. The study concluded that, although the company has created employment avenues, it shouldavoid duplication of roles and focus on economically sustaining jobs. The study recommends opening more lines for telecommunication for wider outreach projects should beinclusive in nature develop an implementation base linked to local problems demonstrate howtelecommunication can transform the education and health sectors devise means to protect users against hackers Advising telecommunication users on possible shortfalls that may erupt Conduct facilitation andresearch for profile building diversification of projects identifying rivals need for company to know about the size of its potential market implementation of a guided participatory action research.