The Ethiopia Communications Authority (ECA) has announced a plan to award the third telecom licence. From September 2023 through February 2024 is when this is anticipated. This development is anticipated to provide Ethio-Telecom with fierce competition, as well as Safaricom, the world’s largest telecommunications company, which obtained the second operator license in Ethiopia in October 2022 and has already begun rolling out its infrastructure. A monopoly had previously been held by Ethio-Telecom.
According to media sources, the price of the full-service telecom licence B, which includes mobile finance services, could be based on Safaricom’s winning offer of US$ 850 million. Additionally, the government of Addis Abeba wants to sell up to 40% of the stock in the state-run company Ethio-Telecom.
According to ECA Director-General Balcha Reba, one of the key initiatives in the Ethiopian Homegrown Economic Reform is opening up the telecom industry. The authorities have published a Request for Qualifications (RFQ), and the deadline to complete and submit one is September 16, 2023, he continued.
Since the country’s telecommunications sector began to liberalize, there have been a number of positive developments, according to ECA, including a solid legal and regulatory framework for the industry, the ability to offer mobile financial services, and the availability of additional spectrum.
Ethiopia’s quickly developing telecoms market is taking place as Kenya’s Safaricom continues to have financial difficulties as a result of making a significant initial investment in the uncharted territory. After four years, Safaricom anticipates reaching break-even in Ethiopia.