BY DANIEL ALEMAYEHU
It has been more than a century since the Ethiopian Telecommunication Corporation started providing its services to the people of Ethiopia. It is one of the oldest telecommunication operators in Africa. Through the course of a century long service, the corporation had taken a number of actions in improving its capacity and quality of services it is delivering. The government-owned company indeed, had upgraded its services in those years. In the past few years, Ethio-telecom has been striving to bring the best experience to its people regarding technology and telecom.
For better experience, Ethio-telecom has taken a decisive action to privatize a portion of its share. To this end, the operator sold 40 percent of its share to the well-known African telecom company, Safari-com. Such decision has blessed the people of Ethiopia with a unique experience of getting services from two different telecom companies.
Ethio-telecom has introduced plenty of new platforms to its customers as a new beginning and makes life easy. In the past few years, the company has developed services like the mobile money platform ‘telebirr’ to make transactions easier for its customers. Besides, the company has agreed to work with many local banks for money transfer and other related services. The company has also launched a 5G mobile internet service in some selected areas.
After some times, the state-owned company has scored better achievements regarding securing better profit in short period. For instance, in the 2021/22 fiscal year, Ethio-telecom reported that the company raised its annual revenue to 8.5 percent compared to the previous year. It secured a profit worth 61.3 billion Birr. In the same report, Ethio-telecom hit 87.6 percent of its revenue target set for the last budget year.
Lately, the state-run company, Ethio-telecom presented the first six- month performance in the 2022/23 fiscal year. On the event, the company’s CEO Frehiwot Tamiru presented the company’s performance report in detail. The CEO stated that the company has secured some 8.18 billion Birr net profit within the first six months of the current fiscal year. Also, the total revenue scored 33.8 billion Birr.
Frehiwot remarked that the total revenue of this year’s six- month has accelerated its performance when it is compared with the same period last year exceeding by 20 percent. By doing so, as to the CEO, the operator also achieved 96 percent of its set target.
The company has increased its services to the next level bringing more customers and providing better services. The CEO stated that different services have contributed their own shares on the revenue that the company acquired. The mobile voice service has 47 percent contribution to the total revenue. Not only that, the data and internet service also contributed 28 percent of the total profit. Further, international business shared and value-added services have contributed 8.4 and 6.5 percent respectively. Infrastructure shares 2.2 percent and the 7.5 percent of the total revenue is acquired from other resources.
It is the fact that the country is very much in need of foreign currency. The nation is trying to get the best out of its services to curb the shortage of foreign currency seen in the country.
To support the above raised idea, Ethio-telecom has been taking part in relation to supporting the country’s foreign currency earning. As a result, it was reported that it has generated 64.8 million USD from international business. This figure is 90 percent of the total set target to generate.
Though the company has been competing with its counterpart, the number of its subscribers and customers has been scaling up. According to Frehiwot, the operator stepped forward to reach the subscribing customers to 70 million. The figure is 98.6 percent of the expected number of customers in terms of subscribers. The number has 15.1 percent of increment compared with the same period last year. The operator has got additional 9.2 million customers in the first six months of the current fiscal year.
Accordingly, it was reported that the company’s mobile voice subscribers exceeded to 67.7 million; the number of data and internet subscribers reached 31.3 million. Fixed service and fixed broadband subscribers stretched to more than 862 thousand and 566 thousand respectively. The company’s density has reached 65.7 percent.
Frehiwot further explained that such accomplishments have been achieved because of works on network expansion and optimization works which aims to uplift the customers’ experience and satisfactions. The company also offers a total of 91 local and international products and services, of which 50 are new while the rest are revamped.
“A total of 228 project works that would help expand and strengthen Ethio telecom’s infrastructure, increase network coverage and capacity are carried out enhancing the capacity to serve five million additional customers,” Frehiwot added.
In addition, Ethio-telecom, as to Frehiwot, has also launched its pre-commercial 5G mobile service in Adama City. This step will be an enabler for critical service missions and the realization of technologies, it was reported.
The CEO further disclosed, “Through the implementation of a cost-saving strategy which aimed at making the company more efficient and productive by avoiding unnecessary costs, we are able to save 3.5 billion Birr, and achieving 134 percent of the plan.”
In the report, the role of the digital payment system ‘telebirr’ has been discussed. The digital system has incorporated over 27.2 million customers. As a result, through the platform, a total of 166.1 billion Birr was transacted by the customers in the last six months. Besides, the system has generated more than 82 million Birr income to the company in the period.
Expanding its telebirr remittance services and creating link to international money transfer institutions, people in 44 different countries, where the service is reached, have the chance to transfer money easily to their home land. Therefore, in the last six months, the company received more than 700 thousand USD through the platform, Frehiwot reported.
On the other hand, the report has also incorporated the challenges that the operator has encountered during the report period. The CEO listed the major challenges. Service outrages due to security instability, fiber and copper cable damage and commercial power interruption are some of the challenges that have been barged in the operation. Regarding the company’s expansion, as to the CEO, delay in land acquisition in relation to new site deployments has created hindrance.
Frehiwot further disclosed, “Given the challenges posed to provide and expand telecom services and the fact that it is obtained amid competitive market; the achievement is considered remarkable.”
THE ETHIOPIAN HERALD SUNDAY EDITION 22 JANUARY 2023
