The Ethiopia Communications Authority (ECA) has unveiled its strategy to grant the third telecom license from September 2023 to February 2024.
This move is set to create intense competition for both Ethio-Telecom and Safaricom, the prominent Kenyan telecommunications company.
Safaricom secured Ethiopia’s second operator license in October 2022 and swiftly implemented its infrastructure. Prior to this, Ethio-Telecom held a monopoly over the sector.
Reports from the media suggest that Safaricom’s winning bid of $850 million could potentially serve as a benchmark for pricing the comprehensive telecom license B, encompassing mobile financial services.
Additionally, authorities in Addis-Ababa are pursuing the sale of up to 40% of shares in the state-owned Ethio-Telecom.
The liberalization of the telecom sector stands as a significant pillar within the Ethiopian Home-grown Economic Reform, according to ECA Director-General Balcha Reba.
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He further stated that authorities have issued the Request for Qualifications (RFQ), with a deadline for completion and submission set for September 16, 2023.
ECA highlights a range of positive advancements in the nation’s telecommunications sector since the inception of liberalization.
These include a robust legal and regulatory framework for the telecoms industry, the establishment of a legal structure to facilitate mobile financial services, and the availability of additional spectrum.
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This swiftly evolving landscape within Ethiopia’s telecom industry coincides with Kenya’s Safaricom facing financial challenges stemming from substantial initial investments in this new domain. Safaricom envisions reaching a point of profitability in Ethiopia within a span of four years.
