Ethio Telecom Targets $1.57bln Annual Revenue, Offers Tariff Discount

ADDIS ABEBA – State-run Ethio Telecom said it has targeted over 1.57 billion US dollars revenue this year while announcing new tariff discounts and packages for the New Ethiopian Year.

The target for the current 2020/21 fiscal year shows a 6.3 percent surge when compared with the revenue from the 2020/19 fiscal year which was 1.47 billion US dollars.

CEO of the telecom firm, Frehiwot Tamiru said the company has taken several factors into consideration when planning the new target.

These include the GDP growth, per capita income, inflation, population growth, and poverty line of the country, according to the CEO.

The company business analysis for the period has also projected for the telecom penetration in the country to increase from 46.2 to 52.2 million at the end of FY.

The CEO also expected mobile subscribers to surge the current 44.5 million to 49.7 million and mobile data subscribers form 23.5 million to 27.4 million.

To improve network coverage capacity, more than 5.47 million additional mobile network capacity will be installed both in Addis Abeba and regions, she said.

Frehiwot has mentioned Ethio telecom’s plan to build 842 sites of tower reinforcement, new site development, and new fiber route development during the period.

Tariff Discount

At the same press conference, the sole provider of telecom services in Ethiopia has announced service tariff discounts on its several local and international mobile services as of Thursday.

These include a tariff reduction of up to 59 percent on the Stay Safe package to lessen the Covid-19 impact; 35% and 29% discount on data and voice package, respectively; and 28% discount on mobile voice plus data package.

It has also made 20% and 21% discount on unlimited premium mobile voice plus package and unlimited mobile data package, respectively.

The company has also announced two offers as a New Year present to its customers called Adey Abeba and Good Morning packages.

With the Adey Abeba, Ethio telecom has made up to 53 percent discount on its telecom services while the discount for good morning package could go up to 33 percent.

New Strategy Activated

Two months ago, Ethio Telecom has initiated a new three-year strategy, which the CEO said would help the company to accommodate the changing reality and get ready for the upcoming competitive market.

The latest strategy which started in July 2020 has been developed by considering and reviewing relevant government policies, international best practices, and industry trends, the CEO said, ahead of liberalization.

The Ethiopian government is on the process of selling its 40 percent stake in Ethio Telecom along with selling two licenses for foreign companies to operate in the country.

The new plan includes building infrastructure which will enable the company to host more customers.

The company will obtain rental and leasing fees for its infrastructure from the new entrants. It will also give a competitive advantage and help the company provide quality service to the customers, according to the CEO.

By Sisay Sahlu

 

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