The Ethiopia Communications Authority (ECA) has announced a plan to award the third telecom license between September 2023 and February 2024. This development is expected to offer stiff competition for Ethio-Telecom as well as Kenya’s giant telco Safaricom which won the second operator license in Ethiopia in October 2022 and has already rolled out its infrastructure. Ethio-Telecom had previously held a monopoly.
Media reports indicate that Safaricom’s winning bid of US$ 850 million could serve as a guide for the price of the full-service telecom licence B, which includes mobile financial services. Separately, addis ababa authorities also aim to sell up to 40% of the shares in state-owned Ethio-Telecom.
Opening up the telecom sector is one of the major activities included in the Ethiopian Homegrown Economic Reform, ECA Director-General Balcha Reba said. He added that the Request for Qualifications (RFQ) has been issued by authorities and the closing date to fill one in and submit it is 16th September 2023.
According to ECA, there are several positive developments occurring in the country’s telecommunications sector since the beginning of liberalisation, including a strong telecoms sector legal and regulatory framework, a legal framework to provide mobile financial services, and availability of additional spectrum.
This rapidly evolving telecoms space in Ethiopia is happening when Kenya’s Safaricom continues to take a hit on its bottom lines due to the heavy initial investment in the new frontier. Safaricom expects to break even in Ethiopia after four years.
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