South Sudanese telco challenges old players

Digitel’s foray into South Sudan’s telecom market is testing the grip of entrenched players, exposing gaps in coverage and challenging assumptions about who gets to build connectivity in one of the world’s least served nations

SPECIAL REPORT | BIRD AGENCY | South Sudan’s telecommunications sector, long dominated by foreign multinationals, has a new contender as local operator Digitel makes inroads into one of the world’s least connected countries. The 2021 upstart helmed by De Chan Awuol from a spartan Juba outpost is clawing market share from the better entrenched MTN and Zain through aggressive capex and subscriber poaching.

Internal tallies show it is outstripping rivals’ net additions in a subscriber pool hovering at 4.4 million mobiles and 1.9 million internet users as of early 2025. Digitel’s initial bragging rights included the deployment of its own infrastructure and a 5G pilot conducted in Juba’s Hai Neem district in partnership with Chinese vendor ZTE. The trial, launched in 2024, recorded download speeds of 1.2 Gbps, marking the country’s first test of next-generation mobile technology.

The firm’s commercial strategy reflects local constraints. It offers handsets with extended battery life to accommodate unreliable electricity supply and prices its data bundles to match the spending power of a population where more than 80 per cent remain offline. Digitel is also investing in its own towers and backhaul systems to reduce reliance on leased infrastructure and imported bandwidth.

South Sudan’s mobile market remains concentrated. MTN held over 60 per cent of mobile subscriptions by the end of 2024, according to company filings. The South African operator added 1,556 4G sites across its African footprint last year, contributing to a 25 per cent increase in mobile users in South Sudan. Zain, the other major player, maintains a smaller but stable presence.

According to Mordor Intelligence, South Sudan’s telecom market is expected to reach $134 million in 2025 and grow to $176 million by 2030, reflecting an annual increase of 5.7 percent. Subscriber numbers are projected to rise from 3.76 million to 4.5 million over the same period, with average yearly growth of 3.7 percent.

While comprehensive market data is limited, Digitel insiders report faster subscriber growth than competitors in certain urban corridors. Analysts say the lack of publicly available figures makes it difficult to assess the full impact of the company’s entry.

The broader operating environment also remains challenging. The civil war in neighbouring Sudan has disrupted oil exports, South Sudan’s primary source of foreign currency. The South Sudanese pound has depreciated sharply against the US dollar, increasing the cost of importing telecom equipment. Insecurity in several states has delayed tower construction and forced operators to reroute logistics.

Despite these constraints, mobile networks have shown resilience in conflict-affected regions. “Telecom companies should be quite familiar with war,” said Nzioka Waita, Africa director at the Tony Blair Institute and former Safaricom’s corporate affairs director, citing Somalia and Ethiopia as examples of continued telecom activity during unrest.

Digitel’s current operations are concentrated in Juba, Wau, and Malakal, where mobile broadband penetration is highest. The company is testing renewable-powered towers to extend coverage into rural counties with limited infrastructure. Its stated objective is to provide nationwide access to basic voice and data services, with future plans to introduce mobile money and enterprise tools.

The leadership team includes Paul Onek, chief technology officer, and Wilson Kyumba, chief operations officer, both of whom have experience in regional telecom deployments. Digitel has recruited engineers and technicians from South Sudanese universities and vocational programmes.

Government support has been mixed. The Ministry of Information described the 5G trial as a “gateway to unprecedented opportunities,” and the Universal Service and Access Fund has called for rural expansion. However, regulatory clarity remains limited, and tax exemptions granted to Digitel have prompted debate over market fairness and fiscal sustainability.

The company maintains that its local orientation offers operational advantages, but its long-term viability will depend on its ability to scale infrastructure, navigate regulatory hurdles, and compete on service quality. For now, its presence marks a shift in South Sudan’s telecom landscape, introducing domestic competition in a sector previously defined by foreign incumbency.

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SOURCE: Seth Onyango, bird story agency