ADDIS ABABA – Ethio Telecom, The state-owned sole telecom service provider, targets 45 billion birr revenue for the current 2019/20 fiscal year, its top official said on Friday.
The target is 9 billion Birr higher than the total revenue the telecom company collected during the 2018/19 budget year, which was concluded on July 7.
“We plan to increase the company’s revenue by 25 percent in the current fiscal year,” said Frehiwot Tamiru, CEO of the state monopoly, while announcing the company’s three-year strategic plan.
The target set by the telecom company described in its plan as a high case scenario and could be achieved if various unfortunate manmade and natural factors do not affect its performance.
The plan still set higher than last year’s revenue in its lower case scenario, which aims to collect 41.5 billion Birr in revenue.
Inflation, theft and vandalizing of its infrastructures, telecom fraud, electric power interruption and other related issues are mentioned as factors hampers the company’s performance by the CEO.]
4G Network to grow
The company expects to increase total subscribers by 16% to 50.46 million in the year to July 2020.
It plans to open 73 new retail shops over the same period, bringing the total to 438, it said.
The company which has been conducting a three-year strategic plan has put forward comprehensive business tactics to be executed in the period between July 2019 and June 2022, according to Frehiwot.
The strategy that is built in six thematic areas, according to the CEO, is targeting to create a more competitive, capable and preferable telecom company.
“The huge resources accumulated in the company have not been fully utilized,” said the CEO. “If we can make use of them, together with the current positive commitment and motivation, we will witness the changes soon”.
The state-run Ethio Telecom plans increase its fourth generation of broadband cellular network technology (4G) in Addis Abeba as well as installing in other regions while upgrading its network services.
The state-run firm is currently in talks with the National Bank of Ethiopia to launch a mobile money platform. Frehiwot described the discussion so far as “positive”.
“If the central bank allows this, it will mobilize around 13 billion US dollars until 2015,” Ethio Telecom’s CEO said.
The government is currently preparing to open up the telecom sector to private foreign investment.
It said two telecoms licenses will be awarded to multinational mobile companies, signaling a move toward opening up one of the world’s last major closed telecom markets.
The new three-year strategic plan is aimed at “reshaping the company and lead with business orientation and a competitive mindset.”
By Sisay Sahlu