Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Digital Inclusion

Ethiopia to award new telecoms licenses in early 2020

Article Image
Ethiopia plans to award two new telecoms licenses and sell a minority stake in state-owned Ethio Telecom early next year as part of the government's plans to open up the country's telecoms sector to privatization.

A statement on the Ethiopian Ministry of Finance's website indicates that the government plans to partly privatize national operator Ethio Telecom while granting licenses to newcomers in order to improve competition in the telecoms services sector.

"The Government plans to complete partial privatization and awarding of licenses during the first quarter of 2020," the statement said.

The privatization will be carried out through a competitive bidding process.

"Furthermore, the Government has determined that two new operators will be allowed to enter into the market and compete with Ethio Telecom."

The move also aims to improve and expand telecom services to underserved areas in the country, which is in line with the Ethiopian government's goals of achieving universal coverage for its people.

Ethiopia is planning to award two new telecoms licenses in the first quarter of 2020.
Ethiopia is planning to award two new telecoms licenses in the first quarter of 2020.

In June 2018, Ethiopia became the continent's most sought-after investment opportunity for mobile operators after the government said it would allow private domestic and foreign investment in state-owned telecoms, aviation, shipping and power companies after decades of state control.

Paris-based Orange, South Africa's MTN, UK-based Vodafone and Etisalat of the United Arab Emirates have all expressed interest in expanding their African footprints into Ethiopia. (See Orange in Talks to Enter Ethiopia.)

With more than 102 million inhabitants, Ethiopia has one of the world's fastest-growing economies.

"Privatization of the telecommunications sector will also facilitate Ethiopia's push towards a digital economy by closing gaps in digital infrastructure. It will also enable the introduction and expansion of new technologies. Moreover, it is anticipated that improved quality, higher speed and expansive telecommunications infrastructure will play an important role in preparing the country for high tech industrialization," the Ministry said.

"As the country develops its digital infrastructure new business opportunities are expected to emerge, creating jobs for the youth. A priority for the government will be to prepare the youth for a fast-paced digital economy by developing training programs, through private sector participation, on opportunities through digital transformation."

The Finance Ministry said that Ethio Telecom, which has about 60 million customers, is also going to be structured into two operating divisions: an infrastructure division and a services division.

"The infrastructure division will be responsible for managing the international gateway, the national fiber optic backbone network and passive element of the access to network including cellular towers. The service division will be responsible for managing all cellular, retail internet and fixed line services," it said.

The government believes the structure will provide greater cost transparency and enable the negotiation of fair and transparent open access contracts with new operators.

The government has also strengthened the country's regulatory structure by enacting the Communications Service Proclamation, which establishes a new independent telecom regulatory authority. The Ethiopian Communications Authority (ECA) has the responsibility to administer, monitor and enforce the telecommunications regulations and issue licenses for existing and new operators.

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Omdia View: February 2024

Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

Story

Key adoption areas for machine learning in Africa

ICT analyst Francis Hook identifies some of the key sectors that could be positively impacted by machine learning, including education, government services, healthcare and climate tech.

More Innovation hub

Latest video

More videos

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Sponsored video

More videos

Industry announcements

More Industry announcements

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Partner perspectives

All Partner Perspectives

Guest Perspectives

Story

Omdia View: January 2024

By Omdia Analysts

Highlights in January 2024 in the Middle East and Africa included a $200 million fintech deal between MTN and Mastercard as well as 5G network trials by Telecom Egypt – that and more in this month's Omdia View.

Story

Omdia View: September 2023

By Omdia Analysts

Highlights in September 2023 in the Middle East and Africa included more 5G spectrum licenses, vendor and operator strategies, and partnerships – that and more in this month's Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002