Ethio Telecom Aims Eastern African Markets

The telecom monopole in Ethiopia, Ethio Telecom, requested the government to expand to some parts of Eastern Africa.

Speaking on the issue Andualem Admassie, Chief Executive Officer of Ethio-Telecom, explained the company’s aim to take advantage of neighboring countries potentials by tapping into their market. “We are now asking the government to make an amendment on its telecom policy so that it could make us free to expand our presence in the region”.

Nevertheless, the telecom company’s decision to expand is utterly different from the policy stance Ethiopian government holds regarding liberalizing its telecom sector. The paradox is Ethiopia’s telecom industry is under the monopoly of the same company aiming to expand to other countries.

Commenting on liberalization of Ethiopia’s telecom sector, the CEO said “It is very early neither to liberalize the telecom sector in Ethiopia nor to provide second licenses”.

It was only 10 years ago Poland liberalized its telecom sector while France still holds 30 percent of France Telecom, Andualem furthered. “For instance we have provided 20 billion birr financial support for the nation’s railway projects and we have reached 28 billion birr annual revenue this fiscal year,” Andualem said, explaining how Ethio Telecom is getting bigger and important for the government in terms of finance and as enabler of the remaining sectors.

Currently Ethio Telecom is the second largest operator while it is 38th in the world, the CEO noted. “With a capacity of managing such market base, we will swallow some of our neighboring operators, be it in Chad, Somalia or Sudan,” he added.

Source: The Reporter