Ethiopia's two dominant mobile operators have both made headlines with positive developments.
State-owned Ethio Telecom officially launched a rural mobile solution, bringing connectivity to 903,000 people in 305 previously unserved kebeles (small administrative units). Local reports indicate that the enhanced connectivity will reduce the average distance that rural communities need to travel for services by up to 20 kilometers.
Ethio Telecom plans to further expand mobile services in rural areas where telecommunication access is limited. However, the company acknowledged challenges such as difficult terrains, lack of roads, scattered settlements, and power shortages. It called for collaboration from regulators, policymakers, development partners, and technology providers.
Meanwhile, Safaricom Ethiopia, a newer competitor, reported an increase of 250,000 subscribers in the second quarter ending July, bringing its total customer base to 4.6 million. The growth was driven by the company’s entry into the formerly conflict-ridden Tigray region.
However, Safaricom's capital-intensive investments in Ethiopia contributed to an 18.71% drop in parent company Safaricom's profit, which fell to KES42.7 billion (US$331 million) for the fiscal year ending in March.
In July, Reuters reported that Ethio Telecom saw a 9% increase in its total subscriber base, reaching 78.3 million. Its financial service, Telebirr, also saw significant growth, with subscribers rising from 34.3 million to 47.55 million by the end of June 2023.
