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Ethio Telecom

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Ethio Telecom
Native name
ኢትዮ ቴሌኮም
Company typeState-owned enterprise
IndustryTelecommunications
PredecessorEthiopian Telecommunications Corporation November 1894 (1894-11)[1]
Founded29 November 2010; 14 years ago (2010-11-29)[2]
Headquarters
Addis Ababa
,
Ethiopia
Area served
Ethiopia
Key people
Services
Revenue
Total assets
Total equity119 billion birr
Number of employees
39,994[4]
ASN24757 Edit this at Wikidata
Websitewww.ethiotelecom.et

Ethio telecom (stylised as ethio telecom; Amharic: ኢትዮ ቴሌኮም), previously known as the Ethiopian Telecommunications Corporation (Amharic: የኢትዮጵያ ቴሌኮሙኒኬሽን ኮርፖሬሽን, ETC), is an Ethiopian telecommunication company serving as the major internet, telephone and digital services provider. Ethio Telecom, owned by the Ethiopian government, historically held a monopoly over telecommunication services in Ethiopia. However, with the recent liberalization of the market, Safaricom has entered the Ethiopian market, marking a significant shift in the competitive landscape while Ethio Telecom remains a major player.[6] Based in Addis Ababa, it is one of the "Big-5" group of state owned corporations in Ethiopia, along with Ethiopian Airlines, the Commercial Bank of Ethiopia, Ethiopian Insurance Corporation, and the Ethiopian Shipping Lines.[7]

Ethio telecom was managed, on a management contract arrangement from 2010 to 2013, by France Télécom, and was required to comply with Ethiopian government orders.[8] The government said it outsourced the management as ETC was not able to meet the demands of the fast-growing country. It also said that telecommunications services would not be privatized, at least not in the near future.[9] Ethio telecom generates a revenue of over US$2.1 billion for the Ethiopian government, and was dubbed a "cash cow" by the previous Prime Minister Hailemariam Desalegn.[10]

History

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Ethio telecom building and antenna mast in Mekelle

Originally a division of the Ministry of Post, Telephone and Telegraph, what would become the ETC was established as the Imperial Board of Telecommunications of Ethiopia (IBTE) by proclamation No. 131/52 in 1952. Under the Derg regime, the IBTE was reorganized as the Ethiopian telecommunications service in October 1975, which was in turn reorganized in January 1981 as the Ethiopian Telecommunications Authority. In November 1996, the Ethiopian Telecommunications Authority became ETC by Council of Ministers regulation No. 10/1996. The subsequent Proclamation 49/1996 expanded the ETC's duties and responsibilities. For its international traffic links and communication services, ETC mainly uses its earth station at Sululta which transmits and receives to both the Indian Ocean and the Atlantic Ocean satellites.[11] Engineering consulting firm Arup, were involved in the design and engineering of the early tower structures (during the 1970s).

In late 2006, the ETC signed an agreement worth US$1.5 billion with three Chinese companies, ZTE Corporation, Huawei Technologies and the Chinese International Telecommunication Construction Corporation, to upgrade and expand Ethiopian telecommunications services. This agreement will increase the number of mobile services from 1.5 million to 7 million, land line telephone services from 1 million to 4 million, and expansion of the fibre optic network, from the present 4,000 kilometers to 10,000 by 2010. It is part of a larger US$2.4 billion plan by the Ethiopian government to improve the country's telecommunications infrastructure.[12] In 2018, the mobile service business has reached 85% of the country. In February 2018, it was reported that Ethio telecom had 64.4 million subscribers making it the largest telecommunication services operator in the continent.[13] In August 2019, the company announced that it will install 4G network before other telecom companies enter the Ethiopian market since the government decided that it will liberalize the telecom sector.[14]

Frehiwot Tamiru is serving as the current chief executive officer since 25 July 2018 replaced Andualem Admassie who served five years. Frehiwot previously worked as Deputy CEO for Internal Support Service for then Ethiopian Telecommunication Corporation. She told Capital that she managed all surveillance quality protocols.[15]

By 26 August 2020, Ethio telecom planned to extended 842 new infrastructure site during 2020 fiscal year. This infrastructure expected to enable the company to host additional 5.2 million new customers. During this fiscal year, the company planned to generate 55.5 billion birr in revenue, a 16pc growth from the last fiscal year. It also plans to boost the country's telecom density to 51.3%.[16] At the end of financial year 2021/22 it generated a revenue of 61.3 billion birr and boosted the country's telecom density to 63.3% after total subscribers reached 66.59 million.[17]

In May 2021, Ethio telecom launched Telebirr, a mobile service platform. Frehiwot said 21.8 million users signed up with this service, making total transaction of 30.3 billion birr.[18] On 10 May 2022, Ethio telecom commenced 5G network for pre-commercial sale in partnership of Huawei Technologies after several months upgrading the predecessor 4G network.[19] In October 2024, Ethio telecom announced to sell its 10% stakes to citizens after formalization of transition to share company on 21 June 2024. The CEO of Ethio telecom Frehiwot Tamiru explained that buyers can purchase up to 3,333 shares with maximum amount of total investment of 990,000 birr. She noted that such purchase would incur taxes and service fees.[20]

Network and Infrastructure

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Cellular

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Ethio Telecom's national network infrastructure consists of 10,000 plus mobile towers providing geographical coverage to 86.5% of the country.[21] The company 4G/LTE service has reached 70.8% of the population and its 5G service is available in 26 cities in by June 2025. While network availability has expanded significantly, a prominent "usage gap" persists, as highlighted by industry analysis from the GSMA. The GSMA reports that only 26% of the population covered by mobile broadband are active users[22]. Primary barriers include low penetration of smart phones, lack of digital skills, and limited access to critical infrastructure, particularly electricity.[22]

List of supported cellular systems
System Frequency Technology
GSM(2G) 900 MHz(E-GSM) GPRS, EDGE
UMTS(3G) 2100 MHz(B1) HSPA+
LTE(4G) 1800 MHz(B3) LTE+
5G NR 3500 MHz(n78) -

Internet

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Ethio telecom runs fiber cables through Sudan, Djibouti, Kenya, and Somaliland terminating to the Eastern Africa Submarine Cable System. In 2025, the total capacity of the four lines achieved 1.83 terabits per second data transfer rate and the overall length of inland fiber cables increased to a total of 23,000 kilometers.[23]

Ethio telecom's Network has marginal support for IPv6.[24]

International

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Ethio Telecom's total international gateway (IGW) capacity stands at 2.48 Tbps, following an expansion of 840 Gbps during the 2024/2025 fiscal year to support growing data traffic.[21] A significant portion of this bandwidth, 1.24 Tbps, is provided through locally deployed cache servers that host content from major international platforms like Meta, Netflix, and TikTok within the country. This strategy is aimed at enhancing user experience by reducing latency and speeding up access to popular global content.[21]

Landline

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Ethio telecom has 765,500 fixed landline telephone subscribers as of 2025. The company replaced 910 MSAGs(devices that connect telephone lines to the internet) and added 202 new ones that same year.[23]

Data centers

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The company has two data centers consuming 4.2 MW, primarily used to serve its mobile money service.[25]

Products and services

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Mobile

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Ethio telecom is the largest mobile operator in Africa serving 83.2 million voice call subscribers and 46.6 million mobile data users as of 2025.[26] The company provides GSM, 3G, 4G LTE and recently 5G services. The network offers SMS and MMS messaging, voicemail access, and the option to set custom ringback tones for incoming calls (CRBT). Moreover, users may utilize features such as call forwarding, call waiting, and call diverting, along with international roaming capabilities.[27]

Broadband internet

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Ethio telecom serves as the exclusive provider of fixed broadband internet services in the country with its broadband Internet customer base reaching more than 847 thousand. Most of these customers receive their connection through Asymmetric Digital Subscriber Line (ADSL) technology, which operates over the public switched telephone network. Recently, the company initiated a project known as the 'Copper Switch-Off initiative' aimed at replacing copper lines with advanced fiber optic cables.[28]

DNS and hosting

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The company operates DNS resolutions and registrations for the .et TLD. It also provides hosting services for businesses and individuals in its data centers.[29] In 2021 The company commissioned a modern data center built by the Chinese ICT company Huawei.[25]

Mobile money

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Main article: Telebirr

In May 2021 Ethio telecom launched its mobile money service Telebirr. As of 2025 the service is the largest mobile money service provider in the country with 54.8 million users and transacted 4.9 trillion birr.[30] Customers of the ethio telecom can access the service through an app or through USSD codes for feature phones. The service lets customers send or receive money, buy mobile airtime, get micro loans, pay for utility bills, pay for government institution's fees and other financial services. The smartphone app also lets other third parties to integrate their services in the form of a mini app.[31]

Digital Market Place

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Ethio telecom's recent launch of the Zemen Gebeya Digital Market Place, integrated within its telebirr SuperApp, marks a significant step in Ethiopia's digital transformation.[32] Officially rolled out in May 2025, the platform is designed to connect product and service providers, particularly micro, small, and medium-sized enterprises (MSMEs), with a nationwide consumer base.[33] Zemen Gebeya aims to foster inclusive economic growth by expanding market opportunities, streamlining transactions, and enhancing efficiency and transparency in supply chains. [34]Prospects for the platform include accelerating digital transformation, promoting financial inclusion through digital payments, and creating jobs in various sectors like logistics and digital marketing.[35]

However, this move by the state-owned telecom giant has sparked fear among small businesses and existing e-commerce startups.[36] Many are concerned that Ethio telecom's vast resources, extensive subscriber base, and integration with its own mobile money service could create a monopoly, making it difficult for smaller players to compete and potentially stifling the nascent e-commerce ecosystem.[36] While some entrepreneurs see potential for collaboration and leveraging the platform's reach, a palpable apprehension remains that Zemen Gebeya could discourage small businesses rather than empowering them as intended.[37]

"NEXT HORIZON: Digital & Beyond 2028 Strategy"

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Ethio telecom, the state-owned telecommunications provider in Ethiopia, has launched its "NEXT HORIZON: Digital & Beyond 2028 Strategy," a three-year plan spanning from July 2025 to June 2028. This strategy builds upon the successes of the previous "LEAD Growth Strategy" and aims to transform Ethio telecom into a globally competitive, regionally diversified, and digitally empowered enterprise[21]. The core vision is to be "the Leading Catalyst for a Thriving, Digitally Empowered Ethiopia and Beyond," focusing on expanding digital inclusion, driving economic growth, and becoming a key player in the African digital economy[21].

Infrastructure Development

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A significant component of the strategy involves expanding and upgrading Ethio telecom's infrastructure. This includes increasing 4G LTE Advanced coverage to 85% of the population and deploying 4G in 550 new towns[38]. Additionally, the company plans to develop 1,228 new mobile sites, with a focus on rural areas to bridge the digital divide[39]. Investments in fiber optic networks, data centers, and cloud infrastructure are also planned to support high-speed connectivity and digital service offerings. A key initiative is the modernization of the core network and the transition to green energy solutions, converting 500-1,000 sites annually to solar and grid power[21].

Customer Base Expansion

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Ethio telecom aims to significantly expand its customer base and diversify its digital service portfolio. The company targets reaching 100 million telecom service users by the end of the strategy period, with mobile broadband users projected to reach 67.3 million and fixed broadband customers 1.6 million[21]. A major focus is the growth of telebirr, Ethio telecom's mobile money platform, with targets to increase users to 75 million, transaction volume to 21.3 trillion ETB, and revenue to 49.1 billion ETB[38]. The strategy also encompasses the introduction of new digital products and services, including e-commerce, digital lifestyle solutions, and tailored enterprise services[39].

Financials and Sustainability

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Ethio telecom has set ambitious financial targets for the "Next Horizon" strategy. The company aims to generate 842.3 billion ETB in revenue over the three years, representing a 154% growth from the previous strategy period[21]. Foreign currency earnings are projected to increase to $976 million USD. The company plans to contribute significantly to the Ethiopian economy, with projected disbursements of 253 billion ETB in direct and indirect taxes and 111.3 billion ETB in dividends to the government. Sustainability is a core focus, with commitments to ESG (Environmental, Social, and Governance) practices, energy efficiency, and community engagement [38].

Controversies

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In October 2022, Safaricom, a leading telecommunications company in Kenya, commenced operations in Ethiopia following the government's liberalization of the telecom sector. This change allowed users to choose between two telecom providers. Sources indicate that the competition forced Ethio Telecom to massively enhance its products and services while reducing prices.[40] The company's CEO talked about the improvement saying "It's about our survival"[23]

The Ethiopian government has delayed the approval of Safaricom's mobile money transfer service, M-Pesa, which has been highly successful across East Africa. Currently, 602 governmental institutions and 1,447 petrol stations accept payments solely through Telebirr. Combined with two-year head start telebirr had, this resulted in poor adoption of M-Pesa with just 3.1 million subscribers as of 2023 as compared to telebirr's 54.8 million subscribers.[30]

In December, Ethio Telecom accused Safaricom Ethiopia of causing significant damage to its international communication line running through Djibouti, as well as to its service lines in the Afar region, due to construction activities on the line.

Safaricom Ethiopia shares infrastructure of Ethiotelecom, this generated 743.6 million birr in revenue for the state-owned company during the first half of 2023.[41]

Censorship

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Main article: Internet in Ethiopia

According to reports by the OpenNet Initiative and Freedom House, the Ethiopian government through Ethio telecom imposes nationwide, politically motivated internet filtering.[42] Under a 2012 law regulating the telecommunication industry, attempts by journalists to circumvent Ethio telecom surveillance and censorship of the internet could be interpreted as a criminal offense carrying a prison sentence of up to 15 years.[43]

Most blocked sites are those run by Ethiopians in the diaspora who are highly critical of the government, however, Ethio telecom has also intermittently blocked access to other sites. In 2008, the Committee to Protect Journalists site was blocked for several months after it reported the arrest and beating of the editor-in-chief of The Reporter. For almost two years following the 2005 elections, Ethio telecom, which is also the sole telephone provider in the country, blocked mobile phone text-messaging. The government accused the Coalition for Unity and Democracy, the largest electoral opposition at the time, of coordinating anti-government demonstrations using text messages. Ethio telecom resumed messaging service in September 2007.[44]

See also

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References

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  1. ^ "History Background". Ethiopian Telecommunications Corporation. Archived from the original on 2010-03-08. Retrieved 2024-10-26.
  2. ^ "France Telecom in Ethiopia". La France en Éthiopie (in French). Retrieved 2022-01-30.
  3. ^ a b "Ethio Telecom Doubles Revenue as Rivals Bleed Cash in Deregulated Market". Birr Metrics. 24 July 2025. Retrieved 24 July 2025.
  4. ^ a b "Ethio telecom 2015 EFY (2022/23) Annual Business Performance Summary Report". Ethiotelecom. Retrieved 16 August 2023.
  5. ^ "2024/25 Fiscal Year Annual Performance and Three-Year Lead Growth Strategy Performance!". Ethio telecom. 24 July 2025. Retrieved 24 July 2025.
  6. ^ Central Intelligence Agency (8 October 2013). The CIA World Factbook 2014. Skyhorse Publishing, Inc. ISBN 978-1628734515. Retrieved 24 August 2014.
  7. ^ Kebede, Ezana. "Privatization and its challenges in Ethiopia". nazret.com. Retrieved 24 August 2014.
  8. ^ Committee to Protect Journalists (2013). Attacks on the press journalism on the world's front lines (2013 ed.). Hoboken, N.J.: Wiley. ISBN 9781118611371. Retrieved 24 August 2014.
  9. ^ "Ethiopian Telecommunications Corporation reborn as Ethio telecom". New Business Ethiopia. December 2, 2010. Archived from the original on February 6, 2011. Retrieved June 21, 2012.
  10. ^ "Out of reach:Telecoms in Ethiopia". The Economist. August 24, 2013. Retrieved 24 August 2014.
  11. ^ "Ethiopian Telecommunications Corporation: Historical Background" Archived 2010-03-08 at the Wayback Machine (accessed 30 April 2010)
  12. ^ " $1.5 billion China telecoms deal", Ethiopian News Newsletter August, September and October, 2006 (accessed 11 January 2007)
  13. ^ AfricaNews. "Ethiopia's sole telecoms outfit gets female CEO: Frehiwot Tamiru | Africanews". Africanews. Retrieved 2018-07-29.
  14. ^ "Ethiopia to install 4G network ahead of telecoms liberalization". Reuters. 2019-08-30. Retrieved 2019-09-01.
  15. ^ "Ethio Telecom Appoints Frehiwot Tamiru New CEO". www.ezega.com. Retrieved 2020-08-26.
  16. ^ Fortune, Addis. "Ethio Telecom to Expand Infrastructure Ahead of Liberalization". Retrieved 2020-08-27.
  17. ^ "Ethio telecom 2014 EFY (2021/22) Annual Business Performance Summary Report – ethiotelecom". Retrieved 2022-07-29.
  18. ^ Monitor, Ethiopian (2022-07-28). "Ethio Telecom Reports 61.3bln Birr Annual Revenue". Ethiopian Monitor. Retrieved 2022-10-25.
  19. ^ "Ethio Telecom launches 5G network". www.aa.com.tr. Retrieved 2022-10-25.
  20. ^ admin (2024-10-21). "Ethiopia launches sale of 10% stake in Ethio Telecom to citizens". Capital Newspaper. Retrieved 2024-10-21.
  21. ^ a b c d e f g h "2024/25 Fiscal Year Annual Performance and Three-Year Lead Growth Strategy Performance!". Ethio telecom. 2025-07-24. Archived from the original on 2025-08-12. Retrieved 2025-10-03.
  22. ^ a b "Ethiopia's Digital Economy to Contribute ETB 1.3 trillion to GDP by 2028, Unlocking Jobs and Growth through Telecom and Policy Reforms". Newsroom. 2024-10-24. Retrieved 2025-10-03.
  23. ^ a b c Fortune, (Addis). "Ethio Telecom Undergoes Major Expansion". Retrieved 2025-03-12.
  24. ^ "PeeringDB". www.peeringdb.com. Retrieved 2025-03-12.
  25. ^ a b Tesfaye, Anteneh (2024-09-27). "Ethio Telecom Launched Tier III Ready Modular Data Center Powered by Huawei". Shega. Retrieved 2025-03-10.
  26. ^ "Taxing Triumphs & Digital Domination: Ethio Telecom Explodes with 162 Billion Birr Revenue, 83 Million Customers, and Telebirr's Financial Reign". AfricaNewsChannel. Retrieved 2025-07-10.
  27. ^ "Ethio Telecom". Retrieved 2025-03-10.
  28. ^ "Ethio Telecom". Retrieved 2025-03-10.
  29. ^ "Ethiotelecom hosting offerings". Ethiotelecom.
  30. ^ a b "Taxing Triumphs & Digital Domination: Ethio Telecom Explodes with 162 Billion Birr Revenue, 83 Million Customers, and Telebirr's Financial Reign". africanewschannel.org. Retrieved 2025-07-30.
  31. ^ "Ethio Telecom". Retrieved 2025-03-11.
  32. ^ Fortune, (Addis). "Ethio telecom Launches a Digital Marketplace". Retrieved 2025-09-29.
  33. ^ Team, Editorial (2025-05-09). "Ethio Telecom Debuts Zemen GEBEYA to Drive Digital Economy and MSME Growth in Ethiopia". TechAfrica News. Retrieved 2025-09-29.
  34. ^ "Where Ethiopia Shops Digitally!". Ethio telecom. 2025-05-08. Archived from the original on 2025-08-30. Retrieved 2025-09-29.
  35. ^ "Telecompaper". www.telecompaper.com. Retrieved 2025-09-29.
  36. ^ a b Metaferiya, Daniel (2025-05-19). "Can Ethiopia's E-Commerce Startups Survive a Telecom Giant's Entry?". Shega. Retrieved 2025-09-29.
  37. ^ Fortune, (Addis). "E-Commerce May Never Be the Same Again". Retrieved 2025-09-29.
  38. ^ a b c Onyeagoro, Joyce (2025-08-26). "Ethio Telecom Targets 100M Users, 75M Telebirr Accounts in New 3-Year Plan". TechAfrica News. Retrieved 2025-10-04.
  39. ^ a b user (2025-08-28). "Ethiopia: Ethio Telecom Unveils Ambitious Strategy To Boost Digital Connectivity And Revenue". Broadcast Media Africa. Retrieved 2025-10-04. {{cite web}}: |last= has generic name (help)
  40. ^ "Faster, cheaper: How ending the government monopoly improved Ethiopia's internet". Rest of World. 2023-03-17. Retrieved 2025-03-11.
  41. ^ Tegegn, Elias (2023-01-14). "Sharing Infrastructure With Safaricom Earns Ethio Telecom 743.6 Mln Birr". www.thereporterethiopia.com. Retrieved 2025-03-11.
  42. ^ "Ethiopia". Freedom on the net 2012. Freedom House. Retrieved 24 August 2014.
  43. ^ "Ethiopian law criminalizes independent telecom use". Committee to Protect Journalists. June 15, 2012. Retrieved 24 August 2014.
  44. ^ "One Hundred Ways of Putting Pressure", p. 52. Human Rights Watch report, released 10 March 2010
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