Undoubtedly, telecom infrastructure and services have been recognized as enabler and catalyst for the socio-economic development of a country. Cognizant of relevance and multiple active roles Ethio telecom has in the country’s overall progress and prosperity, the company has been undertaking a wide range of projects and operations to expand telecom infrastructures and systems improve the quality of service and increase the outreach of benefits to the community.
In particular, the company has been working hard to become a competent and preferred telecom service provider in the fast and dynamic telecom market to meet the growing demand for telecom services coupled with supporting the national economic growth.
According to the press release sent to The Ethiopian Herald, Ethio telecom has commenced the last fiscal year with the implementation of its three year BRIDGE growth strategy along with the 2020/21 yearly plan to realize its aspiration to become a preferred telecom operators and partners. The company has conducted vast reform activities and advancements to attain its set strategic objectives-preparing for the upcoming competitive market and enhancing customer experience and satisfaction through ensuring operational excellence.
Accordingly, deploying new and enhancement of infrastructure and systems, service availability, quality and affordability; effective resource utilization and enhancing financial capacity, leadership and staff capacity building and empowerment; building reputable brand were also among the priorities.
As to the press release, the company has garnered a total of 56.5 billion Birr revenue in the past fiscal year which is 101.7 percent of the plan and has 18.4 percent increment compared to the same period of the previous fiscal year. This achievement is realized through network optimization works to enhance customer experience and satisfaction; offering 34 new and 28 revamped local and international products and services.
Mobile voice accounts for 47.5 percent of the total revenue while Data and Internet contributes 27 percent, International business shares 11 percent, Value Added Service accounts for 9.5 percent and the remaining 5 percent comes from other sources.
The press release also stated that the overall performance of the last fiscal year has shown a 66.7 percent increment compared to the company’s performance recorded in June 2018 due to the execution of its 3 year’s strategy, reform and vast expansion works undertaken.
During the period, 166.5 million USD foreign currency was generated from international business and scored 106 percent of the target; showing an increase of 13 percent from previous fiscal year. According to Mekonen Abera, an Economist, this result has high positive impact on the national economic growth adding that foreign exchange is among the bottlenecks of the country’s economy.
This achievement is made possible because of commercialization of new revenue streams generating foreign currency and technical solutions deployed to prevent telecom fraud through establishing collaborations with its international business partners in a consistent and in a manner that ensures mutual benefit. In the reporting period, the company has also paid 26.6 billion Birr dividend.
The total subscribers of the company reached 56.2 million achieving 108 percent of the subscriber base target and an increase of 22 percent from June 2020 landing. Mobile voice subscribers reached 54.3 million, Data and Internet users 25 million, Fixed Service 912K and Fixed Broadband subscribers reached 374K. Population and geographic coverage are 95 percent and 56.4 percent respectively. Telecom density has reached 54.8 percent, the press release explained.
As to the document, the company is running 132 projects on infrastructure and system capacity expansions and enhancements aiming to boost network coverage capacity and quality of services out of which projects like expansion of 4G/LTE Advanced, Modular Data Center, smart poles, Next Generation Business support system are completed.
Applauding the Ethio Telecom’s effort to transform the financial and other related service sectors, Mekonen also stated that expansion of 4G/LTE and other technologies are of paramount importance to create technologically advanced banks and secured financial services that have massive contribution to the effort geared towards transforming the economy of a given country.
In order to meet the growing demand for data and internet services, demand based 4G/LTE Advanced expansions have been done in Addis and also for the first time outside of Addis Ababa in 68 towns in Northwest, Northeast, East, Central-East, South South West, North East East, Southwest, Southeast, South, North regions. In addition, 4G enabler handsets were provided at an affordable price in those regions where the 4G/LTE Advanced services are underway, the document illustrated.
Furthermore, in preparation for the upcoming competition, the company has been focusing on enhancing its execution capacity and has recently engaged in the Mobile Money business introducing “telebirr” with the aim to meet the country’s growing demand for digital financial services. Accordingly, ‘telebirr” subscribers have reached a total of more than 6.58M within two months with total transaction value of 357 Million Birr more than 21,000 agents and merchants have been engaged so far to ensure service coverage.
According to Mekonen, “telebirr” can highly support the national economy to be improved. It substantially mitigates market fraud and artificial inflation cognizant of the fact it applies digital technologies. Additionally, other technological achievements which the company has succeeded are vital for economic growth of the country, he mentioned.
Similarly, he appraised the company’s huge potential in order to reduce unemployment rate over the country. Indeed, the company has created job and income opportunities for more than 337 thousand citizens, of which significant majority are partners who distribute the company’s products and services while the rest are indefinite and definite term employees and other partners engaged in outsourced businesses.
According to the document, the company has also accomplished its Corporate Social Responsibility (CSR) and its commitment for the societies overall progress during the last fiscal year. And the CSR projects are focused in strengthening communities by targeting the fundamental drivers of long-term development such as education, health, agriculture, environmental protection, greening and beautification of cities. Accordingly, the company has contributed more than 847 million Birr in kind, in service and in cash to address pressing societal challenges.
This corporate spirit is also reflected by its staff across the country by voluntarily mobilizing more than 5.5 million Birr for various humanitarian activities in addition to its enormous material, blood donation and in-service support.
In relation with prevention of COVID-19, the company has committed huge resource and attention in communication and awareness creation through the replacement of ring tone message with COVID-19 related messages and providing short codes for Federal and regional governments, providing free access to Ministry of Health and Ethiopian Public Health Institute web pages providing COVID-19 related information.
Moreover, availing free access to educational materials to ensure continuity amid of the pandemic, facilitating and supporting fund raising from within and abroad, its 41million Birr financial contribution to fund Ministry of Innovation and Technology sponsored research on COVID-19 are also among the CSR activities of the company.
As to the document, COVID-19 and crisis from November 2020 in northern part of the country, particularly by the terrorist TPLF, are among the challenges that the company was faced during the period which have compromised expansion and enhancement projects implementation, supply chain, increasing operational costs and revenue impacts.
Additionally, fiber and copper cable vandalism, commercial power interruption, many relocation requests, and delay in land acquisition for new sites deployment were amongst the main challenges that faced the company, the document stated.
All in all, the company’s performance for the last fiscal year is outstanding and it should also be continued for the forthcoming years. Through understanding the company is one of the nation’s economic engines, the government should work jointly with the private sector and the whole citizen in order to boom the national economy, the economist asserted.
BY HIZKEL HAILU
THE ETHIOPIAN HERALD OCTOBER 13/2021
