WiseGuyReports.com Presents “Changes in Government Policies to Drive Ethiopia’s Telecom, Mobile & Broadband Market” report.
Ethiopia’s telecoms, mobile, and broadband market is studied by WiseGuyReports, in their latest report. This report suggests that Ethiopia’s telecoms, mobile, and broadband market is expected to ascend at an impressive pace over the forecast period. Ethiopia is one of the few countries in Africa where the national telco is allowed a monopoly on all telecom services. These services include mobile, fixed, internet, and data communications. Such monopolistic control on Ethiopia’s telecommunications market has led to stagnancy in innovation, limited scope of services offered, and restricted network expansion.
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However, the management recently entered into a contract with Orange Group, which has dramatically improved the performance of the company, even though quality of services could use some more improvements. Such a contract is a vital step towards privatization and the introduction of competition in the country’s telecommunications market. Even though the government residing in the country has rejected any initiatives to propel the progress of these industries in Ethiopia, a shift in the scenario was seen in mid-2008 when the need for higher profits from the company was cited.
Ethiopia’s telecoms, mobile, and broadband market is highly driven by the increased investments made in telecom services, expansion projects, and the deployment of advanced infrastructure. Ethio Telecom has a secure network monitoring platform which has helped in the augmentation of services and also has plans to launch a telecom satellite, while the government in the country has proposed a USD 3 billion investment in the development of a technology city.
However, the telecommunications sector is under heavy regulation of the government which still holds complete control over the networks and the unlimited access to the call records of all phone users and the logs of internet traffic. This is a factor that is posing as a hindrance in the upscaling of Ethiopia’s telecoms, mobile, and broadband market. Most technology which was deployed in the country was provided by ZTE and Huawei, which was quite often favored over the vendor financing offers.
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Even though major vendor contracts are aimed at the augmentation of mobile networks, mobile penetration is at its lowest, as compared to the rest of the world. This is refraining the market from achieving its highest growth potential in the telecommunication sector. However, the growth noted is strong and Ethiopia’s telecoms, mobile, and broadband market is expected to showcase a high growth potential over the coming years. Introduction of policies under the government’s Growth and Transformation Plan is also fostering the growth of Ethiopia’s telecoms, mobile, and broadband market.
The country’s broadband market is also estimated to set on a fast-paced growth trajectory. This can be owed to impressive developments noted in the international bandwidth, 3G broadband services, and national fiber backbone infrastructure.
Key Developments
Ethio Telecom recently partnered with Gulf2Africa cable construction. Ethio Telecom is also anticipated to expand its LTE reach and has started considering charging for over-the-top (OTT) services. On the other hand, the government launched mobile applications as a part of the e-government directorate.
Key Players:
Ethio Telecom (formerly Ethiopian Telecommunications Corporation, ETC), EthioNet, Ethio Mobile, Orange Group, Tecno Telecom, Smadl, Tana Communication, Thuraya.
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