Ethio Telecom

Ethio Telecom is Ethiopia’s state-owned telecommunications operator and one of the country’s most strategically important public enterprises. Based in Addis Ababa, it provides mobile voice and data services, fixed-line telephony, broadband internet, international connectivity, enterprise communications, hosting, data-center services, and digital financial products. Its best-known newer offering is Telebirr, a mobile-money platform launched in 2021 and integrated into a broader digital-services ecosystem. The company traces its institutional origins to the Imperial Board of Telecommunications of Ethiopia, created by proclamation in 1952 as a division associated with the country’s postal and telecommunications administration. It was reorganized several times after the 1974 revolution and during the Derg period before becoming the Ethiopian Telecommunications Corporation in 1996. The organization later adopted the Ethio Telecom brand. For much of its history it operated as Ethiopia’s telecommunications monopoly, reflecting the government’s policy of retaining direct control over a sector regarded as essential to national development, security, and economic modernization. Ethio Telecom’s role expanded substantially during the 2000s as Ethiopia invested in mobile networks, international gateways, fiber infrastructure, and broader access to communications. In 2006 it entered a large infrastructure-upgrade arrangement involving ZTE, Huawei, and the Chinese International Telecommunication Construction Corporation. The program sought to expand mobile and fixed-line capacity and extend the national fiber network. From 2010 to 2013, France Télécom managed the operator under a management contract intended to improve performance and respond to rapidly growing demand, although the company remained subject to Ethiopian government directives and was not privatized. The operator has historically been the country’s largest telecommunications provider. Its network includes GSM, 3G, 4G/LTE, and 5G services, together with SMS, messaging, roaming, voicemail, fixed telephony, and internet access. It also operates international connectivity through terrestrial and submarine-cable routes and provides domain, hosting, and data-center services. Fixed broadband has traditionally relied heavily on ADSL over the public telephone network, while the company has pursued fiber deployment and a gradual replacement of copper infrastructure. Telebirr marked a major shift from connectivity toward digital financial services. The platform enables transfers, airtime purchases, bill payments, government-fee payments, and other services through smartphone applications and USSD channels. Its integration with third-party mini-applications and the later launch of the Zemen Gebeya digital marketplace show Ethio Telecom’s ambition to become a wider digital-platform company rather than only a network operator. These developments have also prompted concerns from competitors and small businesses about the advantages created by the company’s state ownership, subscriber scale, network control, and integration of payments with other digital products. The Ethiopian market began to liberalize in the early 2020s. Safaricom Ethiopia entered commercial operations in October 2022, ending Ethio Telecom’s effective monopoly in mobile telecommunications. Competition has encouraged the incumbent to improve network quality, expand product offerings, develop 5G, and compete more actively on pricing and customer experience. Ethio Telecom remains the dominant operator, but its position is now shaped by regulation, market liberalization, infrastructure investment, and the government’s broader digital-transformation agenda. In June 2024 the company was formalized as a share company, and in October 2024 it announced a plan to offer a 10 percent stake to Ethiopian citizens. In 2025 it introduced Zemen Gebeya through the Telebirr SuperApp and announced the Next Horizon: Digital & Beyond 2028…

Ethio Telecom’s institutional history begins in 1952, when proclamation No. 131/52 established the Imperial Board of Telecommunications of Ethiopia. The organization developed from the state postal, telephone, and telegraph administration and was responsible for national communications infrastructure and international links. During the 1970s it was reorganized under the Derg government as the Ethiopian telecommunications service. In January 1981 it became the Ethiopian Telecommunications Authority. A further restructuring occurred in November 1996, when the Ethiopian Telecommunications Authority became the Ethiopian Telecommunications Corporation under Council of Ministers regulation No. 10/1996. Proclamation 49/1996 expanded the corporation’s responsibilities. The operator used the Sululta earth station for international traffic and communications links, with satellite connectivity reaching both Indian Ocean and Atlantic systems. Engineering firm Arup was involved in the design and engineering of some early telecommunications tower structures during the 1970s. For decades the organization functioned as Ethiopia’s state telecommunications monopoly. The government treated communications as a strategic public utility and retained ownership while demand for mobile services, internet access, and international connectivity increased. In late 2006 the corporation signed a reported US$1.5 billion expansion agreement with ZTE, Huawei, and the Chinese International Telecommunication Construction Corporation. The project was intended to increase mobile capacity from approximately 1.5 million to 7 million users, expand fixed-line capacity from about 1 million to 4 million lines, and extend the fiber-optic network from roughly 4,000 kilometers to 10,000 kilometers by 2010. It formed part of a larger government telecommunications-infrastructure program. Between 2010 and 2013, France Télécom managed the operator under a management contract. The Ethiopian government said the arrangement was needed because the corporation was struggling to meet the requirements of a rapidly growing country. The contract did not amount to privatization: the company remained under government control and was expected to follow government orders. After the management period, Ethio Telecom continued to expand mobile and broadband access and adopted a more consumer-facing national brand. Mobile services became the company’s principal growth engine. By 2018 mobile coverage had reached most of the country, and the operator was reported to have tens of millions of subscribers. In 2019 it announced plans to introduce 4G before new competitors entered the market. Network construction and capacity expansion continued in 2020, including plans for hundreds of additional sites. The company subsequently introduced more advanced mobile broadband and, in May 2022, began 5G pre-commercial service with Huawei. The launch of Telebirr in May 2021 broadened Ethio Telecom’s business beyond telecommunications. The service provided mobile-money transfers, bill payment, airtime purchases, government-fee payments, and related financial functions through smartphones and USSD. It became a central component of the company’s digital-platform strategy and later served as the host environment for third-party services and the Zemen Gebeya marketplace. Ethiopia’s telecommunications liberalization changed the company’s competitive environment. Safaricom Ethiopia began operations in October 2022, giving consumers an alternative mobile operator. The arrival of competition increased pressure on Ethio Telecom to improve products, network performance, and pricing. At the same time, the company retained major advantages through its infrastructure, established customer base, national reach, and state ownership. On 21 June 2024 Ethio Telecom was formalized as a share company. In October of that year the operator announced a plan to sell 10 percent of its shares to Ethiopian citizens, subject to the stated purchase limits, taxes, and service fees. In May 2025 it launched Zemen Gebeya within the Telebirr SuperApp, positioning the platform as a nationwide digital marketplace for products and services. The initiative was presented as support for micro, small, and medium-sized enterprises, although its scale and close integration with Telebirr raised concerns about competitive effects in Ethiopia’s emerging e-commerce sector. The company’s Next Horizon: Digital & Beyond 2028 strategy covers July 2025 to June 2028. It builds on the preceding LEAD Growth Strategy and presents Ethio Telecom as a potential regional and digital-economy player. Its priorities include expanding 4G LTE Advanced coverage, adding rural mobile sites, increasing fiber, data-center, and cloud capacity, growing Telebirr and enterprise services, and improving energy efficiency. Ethio Telecom consequently occupies a dual position: it is the incumbent national operator and a commercial enterprise, but also an instrument of Ethiopian connectivity policy, financial inclusion, and digital transformation.

1. 2025Zemen Gebeya launched

   The operator launched a digital marketplace integrated into the Telebirr SuperApp.

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2. 2024Conversion into a share company

   Ethio Telecom was formalized as a share company on 21 June.

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3. 2024Citizen share sale announced

   The company announced plans to offer 10 percent of its shares to Ethiopian citizens.

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4. 20225G pre-commercial service begins

   The company began 5G pre-commercial sales in partnership with Huawei.

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5. 2022Safaricom enters Ethiopia

   Safaricom Ethiopia commenced operations after market liberalization, creating direct competition for Ethio Telecom.

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6. 2021Telebirr launched

   Ethio Telecom introduced its mobile-money platform, expanding into digital financial services.

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7. 2018Frehiwot Tamiru becomes chief executive

   Frehiwot Tamiru replaced Andualem Admassie as chief executive on 25 July 2018.

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8. 2013France Télécom management contract ends

   The external management arrangement concluded after approximately three years.

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9. 2010France Télécom management contract begins

   France Télécom began managing the operator under a government management contract.

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10. 2006National network expansion agreement

    The operator signed a major agreement with Chinese telecommunications and construction companies to expand mobile, fixed-line, and fiber infrastructure.

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11. 1996Ethiopian Telecommunications Corporation created

    The Ethiopian Telecommunications Authority became the Ethiopian Telecommunications Corporation under Council of Ministers regulation No. 10/1996.

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12. 1981Ethiopian Telecommunications Authority formed

    The telecommunications service was reorganized as the Ethiopian Telecommunications Authority.

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13. 1975Telecommunications service reorganized

    Under the Derg regime, the organization was reorganized as the Ethiopian telecommunications service.

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14. 1952Imperial Board of Telecommunications established

    Proclamation No. 131/52 created the Imperial Board of Telecommunications of Ethiopia, the institutional predecessor of Ethio Telecom.

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A government-owned national connectivity and digital-services platform combining mass-market telecommunications infrastructure with mobile money, enterprise services, and digital commerce.

• Mobile telecommunicationsMobile services

  Ethio Telecom provides national mobile voice and data services over GSM, 3G, 4G/LTE, and 5G networks. The portfolio includes SMS and MMS, voicemail, international roaming, call forwarding, call waiting, call diversion, and custom ringback tones. Mobile services remain the company’s central mass-market business and its principal channel for distributing newer digital products.

• Fixed-line telephonyFixed telecommunications

  The company operates fixed telephone services for households, businesses, and institutions. The fixed network has historically supported broadband through copper-based infrastructure and continues to be modernized through replacement of legacy equipment and migration toward fiber connectivity.

• Broadband internetInternet access

  Ethio Telecom provides fixed broadband, historically with substantial reliance on ADSL over the public switched telephone network, alongside fiber-based access. It also supplies mobile broadband through its cellular network and connects customers to domestic and international internet infrastructure.

• TelebirrMobile money2021

  Telebirr is Ethio Telecom’s mobile-money platform, launched in May 2021. Customers can use a smartphone application or USSD channels to send and receive money, purchase airtime, pay utility bills and government fees, obtain selected financial services, and access third-party mini-applications. Its scale makes it a central part of Ethiopia’s digital-payments ecosystem.

• 5GMobile network generation2022

  Ethio Telecom began 5G pre-commercial service in May 2022 in partnership with Huawei. The service followed upgrades to the existing 4G network and is intended to support higher-speed mobile access and future enterprise and digital applications.

• Domain and hosting servicesInternet infrastructure

  The company provides domain-related services associated with Ethiopia’s .et country-code top-level domain, as well as hosting services for organizations and individuals through its infrastructure and data centers.

• Zemen GebeyaDigital marketplace2025

  Zemen Gebeya is a digital marketplace launched in May 2025 inside the Telebirr SuperApp. It is designed to connect product and service providers, including micro, small, and medium-sized enterprises, with consumers and to combine digital commerce with Telebirr payments.

• 2025Launch Zemen GebeyaProduct launch

  Ethio Telecom sought to broaden the Telebirr ecosystem and provide digital-market access to businesses and consumers.

  What changed. The company introduced Zemen Gebeya within the Telebirr SuperApp as a nationwide digital marketplace.

  Aftermath. The service strengthened Ethio Telecom’s position in digital commerce but also prompted concerns from smaller e-commerce businesses about the competitive advantages of a state-owned incumbent.

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• 2024Convert to a share company and plan citizen ownershipStrategy

  The Ethiopian government formalized a change in the company’s corporate structure and sought broader citizen participation in ownership.

  What changed. Ethio Telecom became a share company and announced a planned sale of 10 percent of its shares to Ethiopian citizens.

  Aftermath. The proposed offering represented a partial shift in ownership structure while the government remained the controlling owner.

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• 2022Begin 5G pre-commercial serviceProduct launch

  The operator was upgrading its network while Ethiopia’s market was opening to competition.

  What changed. Ethio Telecom introduced 5G pre-commercial service in partnership with Huawei.

  Aftermath. The move extended the company’s network-generation portfolio beyond 4G and supported higher-capacity connectivity in selected areas.

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• 2021Launch a mobile-money platformProduct launch

  Ethio Telecom sought to expand from connectivity into digital financial services and increase the use of mobile platforms.

  What changed. The company launched Telebirr, offering transfers, payments, airtime purchases, and related services through applications and USSD.

  Aftermath. Telebirr became one of the company’s principal digital products and a foundation for later platform services.

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• 2019Accelerate 4G deploymentGeneration change

  The government was preparing to liberalize the telecom sector and allow new operators to enter Ethiopia.

  What changed. Ethio Telecom announced that it would install a 4G network before other telecom companies entered the market.

  Aftermath. 4G became an important part of the company’s response to increased demand and impending competition.

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• 2010Use external management supportStrategy

  The government said the operator needed management assistance to respond to fast-growing national demand and performance requirements.

  What changed. France Télécom managed the company under a management contract from 2010 to 2013 while the operator remained state-owned and subject to government direction.

  Aftermath. The arrangement ended in 2013; telecommunications services were not privatized during the period.

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• 2006Approve a large-scale telecommunications expansion programOther

  The government sought to address rapidly increasing demand for mobile, fixed-line, and internet services and to expand national fiber connectivity.

  What changed. Ethio Telecom entered an agreement with ZTE, Huawei, and the Chinese International Telecommunication Construction Corporation to expand network capacity and infrastructure.

  Aftermath. The program became a major stage in the modernization and enlargement of Ethiopia’s national telecommunications network.

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• 2025Ethio Telecom launches Zemen Gebeya

  The company launched a digital marketplace within the Telebirr SuperApp to connect merchants, especially smaller enterprises, with consumers nationwide.

  Product launch
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• 2024Ethio Telecom announces citizen share offering

  Following its conversion into a share company, Ethio Telecom announced plans to offer a 10 percent stake to Ethiopian citizens.

  Other
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• 2022Ethio Telecom begins 5G pre-commercial service

  The operator commenced 5G pre-commercial sales in partnership with Huawei after upgrading its earlier-generation network.

  Product launchProduct generation
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• 2022Safaricom Ethiopia enters the market

  Safaricom began operations in Ethiopia after telecommunications liberalization, ending Ethio Telecom’s effective monopoly and introducing direct mobile competition.

  RegulationOther
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• 2021Ethio Telecom launches Telebirr

  The company introduced Telebirr, a mobile-money platform offering transfers, payments, airtime purchases, and other financial services through apps and USSD.

  Product launch
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• 2020Ethio Telecom expands network infrastructure

  The operator planned hundreds of new infrastructure sites to increase capacity, support additional customers, and raise national telecom density.

  Product generation
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• 2019Ethio Telecom plans 4G deployment before market liberalization

  The company announced plans to install a 4G network as the government prepared to liberalize Ethiopia’s telecommunications market.

  Product launchRegulation
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• 2006Ethio Telecom signs major telecommunications expansion agreement

  The operator entered an infrastructure-upgrade agreement with ZTE, Huawei, and the Chinese International Telecommunication Construction Corporation to expand mobile, fixed-line, and fiber capacity.

  OtherProduct generation
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1. Ethio Telecom