Ethiopia Communication Authority shortlists firms for telco bid

Ethiopia is on the verge of breaking free from the monopoly of Ethio Telecom as the country's only telecommunications network as the government moves forward with the shortlisting of several firms for the telecom bid. This development comes after years of Ethiopians enduring outdated and expensive telecom services provided by Ethio Telecom. The Ethiopian government is set to make a final decision by April 5th, a move that is anticipated to bring much-needed foreign exchange and open the doors to international investment in the telecom sector. Samuel Getachew, an economic and political analyst, shed light on the significance of this decision during an interview with CNBC Africa. Getachew noted that the Ethiopian government, under the leadership of Prime Minister Abiy Ahmed, has been committed to opening up various sectors to international bids, with the telecom industry being a crucial focus. The move aims to not only improve the quality of telecom services in the country but also to attract investment and create competition in the market, which is essential for delivering better and more affordable services to the Ethiopian populace. The shortlisting of multiple companies for the telecom bid signals a potential shift in the landscape of Ethiopia's telecom sector, which has long been dominated by Ethio Telecom. This move has generated excitement among Ethiopians who have long awaited better telecom services and more options in the market. The current lack of competition in the sector, with Ethio Telecom being the sole operator, has severely impacted the quality and reach of telecom services across the country. Ethiopians have had limited options, with no alternatives to choose from, unlike neighboring countries like Kenya, where multiple telecom operators exist. The introduction of new players into the market could pave the way for improved services, increased accessibility, and more competitive pricing for consumers. International telecom companies like Safaricom and Orange have displayed a keen interest in entering the Ethiopian market, recognizing the country's vast potential and sizable population. With over 110 million people and a young demographic with significant spending power, Ethiopia presents an attractive market for telecom operators. The impending decision on the telecom bid will reveal which companies will operate in Ethiopia, potentially reshaping the telecom landscape in the country. In addition to telecom services, there is also anticipation surrounding the licensing of mobile money services. While the government initially indicated that this licensing would be reserved for local entities, including the government, there have been discussions about allowing international telecom operators to also offer mobile money services. As the telecom sector undergoes transformation and opens up to competition, Ethiopians are hopeful that the new entrants will bring about improvements in service quality, affordability, and innovation. The potential entry of international players is viewed as a significant step towards enhancing telecom services in Ethiopia and meeting the evolving needs of the population.