Ethiopia - Telecoms, Mobile, Broadband and Forecasts

Executive summary

Management contract with France Telecom pays off for ETC

This annual report provides a comprehensive overview of trends and developments in Ethiopia’s telecommunications market. Subjects covered include:

• One of the least developed but fastest growing mobile markets in the region;
• The monopoly telecom provider in the country;
• Key statistics;
• Market and industry overviews;
• Government policies affecting the telecoms industry;
• Regulatory environment;
• Plans for privatisation and market liberalisation;
• Infrastructure development;
• Convergence (voice/data, fixed/wireless/mobile).
• Internet and broadband development and growth;
• Mobile data services;
• Broadband, including 3G mobile;
• Average Revenue per User (ARPU).

Ethiopia is one of the last countries in Africa allowing its national telco, ETC a monopoly on all telecom services including fixed, mobile, Internet and data communications. This monopolistic control has stifled innovation and retarded expansion. The government tries to encourage foreign investment in a broad range of industries by allowing foreigners up to 100% equity ownership. However, there is no official schedule for the privatisation of the national carrier and the introduction of competition, but once this happens, the potential to satisfy unmet demand in all service sectors is huge. A management contract with France Telecom has led to dramatically improved performance by ETC and is seen as a first step towards privatisation.

Market highlights:

• ETC transforms under management contract with France Telecom;
• Detailed profile of the monopoly service provider in all market sectors;
• Financial results 2010/11;
• Strong revenue growth despite drastic price cuts;
• Forecasts for mobile and Internet markets to 2013 and 2016;
• Multi-billion US$ investments planned before 2012.

Estimated market penetration rates in Ethiopia’s telecoms sector – end 2012

(Source: BuddeComm based on various sources)

Companies covered in this report:

• Ethio-Telecom (Ethiopian Telecommunications Corporation, ETC)
• EthioNet (ETC)
• Ethio-Mobile (ETC)

Table of Contents

• 1. Executive summary
• 2. Key statistics
• 3. Overview of Ethiopia’s telecom market
• 4. Regulatory environment
  • 4.1 Regulatory authority
    • 4.1.1 Ethiopian Telecommunications Agency (ETA)
  • 4.2 Telecom service licences
  • 4.3 Telecom sector liberalisation
• 5. Fixed network operator
  • 5.1 Ethio-Telecom (ETC)
    • 5.1.1 Fixed-line statistics
    • 5.1.2 Fixed-line infrastructure
    • 5.1.3 Rural area network
    • 5.1.4 Wireless Local Loop (WLL)
    • 5.1.5 Leased lines, data services
    • 5.1.6 VSAT
    • 5.1.7 National backbone network
    • 5.1.8 Next Generation Network (NGN)
    • 5.1.9 International infrastructure
    • 5.1.10 US$4 billion network development plan 2007-2012
    • 5.1.11 Privatisation
    • 5.1.12 France Telecom management contract
    • 5.1.13 Financial results 2010/11
• 6. Internet market
  • 6.1 Overview
  • 6.2 Internet statistics
  • 6.3 National connectivity
  • 6.4 Public Internet access locations
  • 6.5 VoIP grey market
  • 6.6 E-learning
  • 6.7 ISP market
    • 6.7.1 EthioNet
    • 6.7.2 Wholesale
• 7. Broadband market
  • 7.1 ADSL
  • 7.2 WiMAX
  • 7.3 Broadband via satellite
• 8. Mobile communications
  • 8.1 Overview of Ethiopia’s mobile market
    • 8.1.1 Mobile statistics
  • 8.2 Mobile operator
    • 8.2.1 Ethio-Mobile
  • 8.3 Mobile data services
  • 8.4 Third generation (3G)
  • 8.5 Mobile banking
  • 8.6 Satellite mobile
• 9. Forecasts
  • 9.1 Forecast – mobile subscribers – 2013; 2016
  • 9.2 Forecast – Internet users – 2013; 2016
  • 9.3 Notes on scenario forecasts
• 10. Related reports

• Table 1 – Country statistics Ethiopia – 2012
• Table 2 – Fixed-line network statistics – 2012
• Table 3 – Internet provider statistics – 2012
• Table 4 – Internet user statistics – 2012
• Table 5 – Mobile statistics – 2012
• Table 6 – National telecommunications authority
• Table 7 – Fixed lines in service and teledensity – 1995 - 2012
• Table 8 – Internet users and penetration rate – 1996 - 2012
• Table 9 – Internet subscribers – 1997 - 2009
• Table 10 – Mobile subscribers and penetration rate – 1999 - 2012
• Table 11 – Forecast mobile subscribers – 2013; 2016
• Table 12 – Forecast Internet users – 2013; 2016

• Chart 1 – Mobile subscribers and penetration rate – 2002 - 2012