ethio telecom business plan pdf

Ethio telecom unveils "Lead" 3 Years Strategic Plan

Ethiopian telecom incumbent Ethio Telecom unveiled its new three-year development strategy covering the period from June 2022 to June 2025. Named "Lead," the new strategy is expected to enable the company to develop new business areas and solutions beyond connectivity, according to Frehiwot Tamiru, Ethio Telecom's CEO.

Ethio Telecom with a new beginning and a new perspective, began implementing its newly devised three-years LEAD Growth Strategy starting from July 01, 2022, with a vision of providing services beyond connectivity, enabling inclusive growth by providing digital and financial services and simplifying the daily activities of organizations and individuals.

This strategy is a rolling strategy with deliberate and emergent strategy development approaches to accommodate a changing reality, considering the nature of the business and the ongoing market conditions. To ensure competitiveness and sustainable growth of the company, this strategy has been developed by considering and reviewing relevant government policies, international best practices, and Industry trends.

Various important analyses have also been made such as internal and external stakeholders’ interests and expectations (Customers, Employees, Vendors/suppliers and various government organs), past company performances, internal strengths, organizational resources and capacities, and weaknesses, opportunities and threats in the outer environment and the market dynamics. After these multi-faceted observations and analysis of environmental conditions, a total of 20 strategic issues were identified and six strategic thematic areas were formulated.

The strategy is designed to satisfy the ever-changing customer demand, digital inclusion to create better digital economy, financial inclusion, enhance productivity, shift the revenue from traditional revenue streams to value added and content driven services by introducing new business streams and solutions.

In the competitive market, we shall work towards satisfying our customers who are the basis to our company’s existence by providing various service options that will increase their loyalty, improving our services accessibility, facilitating digital channels, improving post-sales services to enable them to have better experience, and implement network expansion programs that increase the quality of service and network density.

To boost customer’s satisfaction and ensure customer loyalty,  Ethio Telecom is working on creating easy customer journey by simplifying offers, availing multiple products and services, empowering customers, enhancing after sales services and enhancing loyalty programs. In addition,  Ethio Telecom is working on improving the services accessibility, facilitating digital channels, engaging more partners, offering subsidized and installment based handsets and availing credit services etc.

The strategy will also continue to focus on the most important company asset – employees, to equip them with relevant knowledge and develop high performance culture, with skill that will enable them to grasp and catch up with the telecom industry dynamism, to exploit opportunities arising from development of the industry and cope with the challenges.

Telecom business needs collaboration and concerted efforts of all players in the ecosystem, to this end, the strategy will be discussed with partners including vendors and distributors, content providers and other stakeholders. This will further enhance strategy execution, shortening of TTM, meet customer demands by adopting new solutions and insights.

Potential challenges during the strategy period are: service outages related to security, lack of supply of foreign currency, market competition, market instability and inflation, global supply challenges, infrastructure damage, telecom fraud and cyber-attacks, regulatory issues, etc. Various solutions and programs are designed and being implemented with a separate work unit assigned to solve the threats and challenges identified by the strategy.

In the 2015 fiscal year, our company plans to make multifaceted efforts to provide quality services that increase customer satisfaction and improve experience, especially through network and system capacity enhancement and improvement projects to secure the company’s market share, as well as new technologies to provide services.

Data traffic growth based expansions of 3G and 4G/LTE Advanced services, network capacity and coverage enhancement activities, 5G pre-commercial expansion, backhaul and transport network capacity enhancement activities, Fixed  broadband capacity enhancement, enterprise, solutions, mobile money and digital financial services, cloud services, Operations support system and Corporate Solutions projects as well as security solutions and technologies to provide new services and various civil construction projects are planned to be implemented.

In this fiscal year,  Ethio Telecom plan to increase our subscriber base by  10.3%  to reach  73.5 million  and increase mobile voice customers by  10.5%  to reach  71 million  and increase the number of fixed broadband customers by  37.4%  to reach  696.7 K  and increase tele density  by 68%.

Ethio Telecom  aims to generate  75.05 billion birr, a 22.4%  increment, by engaging in new business streams and shifting revenue source from traditional to value-added services, offering local and international products & services to the market, increasing telebirr’s access, service types and partners, improving service delivery and by increasing customer satisfaction, retention and loyalty.

It has been two months since  Ethio Telecom started implementing its newly devised LEAD strategy, and in the first two months it already has achieved 98% of its target. To keep satisfying the customers and increase loyalty, Ethio Telecom  have released different products and services.

www.ethiotelecom.et

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Ethio telecom’s commencement of the implementation of its newly developed Three-years LEAD Growth Strategy and presentation of its 2022/23 Annual Business Plan.

Photo Credit: Samuel Habtab

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Ethio telecom plans to generate about 70 billion Birr income in the newly started budget year 2021/22, yet the number could decrease to 66.2 billion birr if certain sensitive issues including the northern region crises are not solved in a short period of time. Moreover, if the telecom service interruption continues due to the security issues, this could make Ethio telecom lose up to 5.1 billion birr annual in revenue. Briefing the media on August 19, 2021, Ethio telecom CEO Firehiwot Tamiru said that new technologies and additional features will be implemented to enhance customer experience, quality and accessibility of services to achieve the set strategic plan. “By expanding its local and international telecom service packages, Ethio telecom will work to intensively meet its plan by strengthening telecom infrastructure, service quality, flexibility and accessibility,” said the CEO. Through the last three years with regards to the implementation of its three year BRIDGE growth strategy, Ethio telecom has commenced to realize its aspiration to become a preferred telecom operator among customers and partners.

Ethio telecom has also planned to increase its total subscribers by 14% to 64 million customers. A further breakdown of their target includes: Mobile Voice subscribers by 13% to 61.37 M, Data and Internet users by 16.2% to 28.5M, Fixed broadband subscribers by 48% to 554K. This is expected to bring telecom’s penetration to 61%. By engaging in new business streams and shifting revenue source from traditional to value-added services and by offering more than 100 new and revamped local and international products & services, Ethio Telecom targets to generate 70 billion birr in revenue in the 2021/22 budget year. The target is 24 percent greater than the revenue Ethio telecom had generated in 2020/21 budget year which was 56.5 billion. It also targets to generate 178 million dollars in foreign currency which is 11.6 million dollars or 7 percent greater than the foreign currency generated in the 2020/21 budget year, which was 166.5 million USD. In particular, Ethio-Telecom has been working hard to become a competent and preferred telecom service provider in the fast and dynamic telecom market to meet the growing demand for telecom services. By building a people oriented company with a competitive strategy, Ethio telecom will work to increase its capacity in the sector and will have a capacity to handle 3.8 million new customers. Moreover, 984 sites will be beneficiaries of 4G network while 490 new mobile stations will be built, with further 2500 2G sites being upgraded to 3G in the process. “On the other hand, infrastructure sharing, interconnections, wholesale roaming and collocations will make up the foregone revenue due to competition. Conflicts in some parts of the country, telecom fraud, inflation and gaps in foreign currency are the main challenges the company faces” highlighted the CEO. With regards to the Northern region crisis, the telecommunication firm hopes that the issue will be resolved within a short period of time. In case of persistence, the targeted subscribers and revenue will be affected and this has been taken into account in the strategy. Also infrastructure vandalism as earlier stated is one of the biggest challenges, and as the CEO explained even if Ethio telecom has started to talk with the new operators on infrastructure, unless all the stakeholders make major interventions to minimize infrastructure vandalism, Ethio telecom will not be obliged to share its infrastructure since it will cost the firm the fulfillment of its agreement to provide 99.99 percent availability on infrastructure.

The CEO stated that about 71 new 4G LTE advanced network infrastructures would be introduced to improve network availability as the data traffic growth and demand from customers for the 4G/LTE have been increasing. In the budget year, the company will work to prioritize digitalization and simplification on its services whilst also empowering customers to use Ethio Telecom as the first choice. Furthermore the telecommunication’s firm aims to enhance its after sales services loyalty program in accordance with its three-year growth plan. Regarding its loan repayment, “Finance and loan repayment is vital for the success of any business, to this end, in the last three years 936.2 million dollar or 32.47 billion birr has been repaid,” said the CEO. The Total Issued Promissory Notes (NGN + TEP) accounted for 2.34 billion USD. Of this, USD 1.56 billion accounted for the total paid loan which was 67% of the total while the remainder of 781 million USD was the remaining amount which is to be settled until 2029.

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Ethio-telecom introduces 3-year strategic plan

ADDIS ABABA – Ethio-telecom has announced a three-year strategic plan called BRIDGE to increase competitiveness and profit of the organization. Frehiwot Tamiru, Chief Executive Officer (CEO) of Ethio-telecom, the strategy has six major elements abbreviated as BRIDGE, which means focuses on best customer experiences, reputable brand, innovative products, develop people oriented learning organization, growth financial capacity and excellence in operation.

She said the main objective of the plan is to increase the company’s competitiveness and efficiency. The company also plans to increase its number of customers from 43.63 to 50.5 46 million and its revenue 36.30 to 45.42 billion Birr this Ethiopian fiscal year. Ethio-telecom announced it has collected 36.30 billion Birr revenue in the concluded Ethiopian fiscal year, attaining 85 percent of the target and plans to collect 45.42 in the coming Ethiopian fiscal years. The revenue increased by 7 percent compared to the preceding year, Frehiwot noted.

Ethio-telecom has been serving the nation for the past 125 years and has been engaged in multifaceted reform initiatives to bring operational excellence, ensure affordable and quality services for the customers, Frehiwot says. The strategy has been developed with in house capacity following both deliberate and emergent strategy development approaches to accommodate a changing reality, by considering the nature of the business and the ongoing market reform.

She indicated that the strategy assumes that in the first year of strategic period, there will not be other operators in the market and no ownership change to Ethio-telecom. Furthermore if any change happens in the course of the year, the strategy is flexible to accommodate the changes. To ensure competitiveness and sustainable growth of the company the strategy has been developed by considering and reviewing relevant government bodies, international best practices and industry trends.

Major business plan objectives and targets in 2012 Ethiopian Fiscal Years (July 2019-June 2020) is to improve the quality of services and service accessibility, network expansion and alternative power solutions and also more than five million additional mobile network capacity in Addis Ababa and the regions, as to Frehiwot.

The strategies major objective is to address ever changing customer demand, digital inclusion to create better digital economy, enhance productivity, and shift revenue from traditional revenue streams to value added and content driven services by introducing new business streams solutions like Internet of Things (IOT), Application Programming Interface (API) and Mobile money.

The Ethiopian Herald, August 31/2019

BY HAILE DEMEKE

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Three-years (2022-2025) LEAD Growth Strategy and 2022/23 Annual Business Plan

September 26, 2022

Ethio telecom started implementing its newly developed Three-years LEAD Growth Strategy!

Our company has conducted vast reform activities in the last four years with remarkable achievements in multiple arena. As part of the reform initiative, the management took the initiative to develop and execute a three- year BRIDGE strategy from July 2019 to June 2022. As 2014 EFY is the final year of the strategic period, our company has now developed a new three-year Growth strategy called LEAD Strategy.

Among the many initiatives following the institutional reform, BRIDGE strategy was designed to meet the market dynamism, reshaping and leading the company with a competitive mindset with the ultimate aim of making the company a Preferred Operator. Accordingly, it achieved many outstanding results in multiple fronts.

Through the reform and during the entire strategy period of BRIDGE, our company achieved 75.6% growth in customer base, 76% growth in revenue, a 104% growth in foreign exchange, 142% growth in net profit, and 125% growth in number of smart phones.

During the strategy period, our company has been working on affordability, offering discounted products & services with up to 86% tariff reduction. It has done network optimization works to enhance customer experience and satisfaction, offering a total of 306 local and international products and services: 140 new and 166 revamped ones.

To sustain the remarkable results achieved, broaden horizons and scope of engagement, our company got its establishment regulation amended by the Council of Ministers, which in turn enabled it to have its capital raised to 400 billion birr and allowed it to participate in the mobile finance and related digital financial services including the right to engage in both domestic and international equity investment.

In addition, more than 200 projects on infrastructure and system capacity expansions and enhancements have been carried out during the strategy period to increase network coverage capacity, diversify business and enhance customer experience out of which projects like expansion of 4G/LTE and LTE Advanced services, Modular Data Center, smart poles, Next Generation Business support system, Mobile Money service and 5G network services have been completed.

Apart from its participation in national activities, Ethio telecom has had its share of contribution in the country’s economy paying 86.6 billion birr in taxes and 11.5 billion birr in dividends in the last four years. In addition, it made payments of 34.3 billion birr (1.1 billion USD) for loans for projects carried out by the vendor financing modality to maintain its credibility and good business relationship with its partners.

During the strategic period, our company was able to issue its financial report for the first time in accordance with the International Financial Reporting Standard (IFRS), and the entire financial report from 2018 to 2021 was examined by external auditors and passed the auditor’s opinion as unqualified.

In addition to the telecom services it provides to our customers, our company has participated extensively in national issues that are beneficial to our society and fulfilled its social responsibility in an integrated manner spending a total of 2.72 Billion birr in Corporate Social Responsibility activities in the last four years. Main areas of contribution were: education, health, environmental protection, green development and beautification throughout our country and our employees have done a very encouraging and exemplary act by providing financial and material support of 44.7 million birr to the economically challenged society as well as by donating blood and providing goodwill services.

In general, the reform and the strategy achieved their intended purpose by building institutional capacity, strengthening the working system, playing an enabling role in the country’s economic development, leaving a positive mark on the lives of organizations as well as individuals, and were concluded successfully.

LEAD Growth Strategy

Our company, with a new beginning and a new perspective, began implementing its newly devised three-years LEAD Growth Strategy starting from July 01, 2022, with a vision of providing services beyond connectivity, enabling inclusive growth by providing digital and financial services and simplifying the daily activities of organizations and individuals.

This strategy is a rolling strategy with deliberate and emergent strategy development approaches to accommodate a changing reality, considering the nature of the business and the ongoing market conditions. To ensure competitiveness and sustainable growth of the company, this strategy has been developed by considering and reviewing relevant government policies, international best practices, and Industry trends. Various important analyses have also been made such as internal and external stakeholders’ interests and expectations (Customers, Employees, Vendors/suppliers and various government organs), past company performances, internal strengths, organizational resources and capacities, and weaknesses, opportunities and threats in the outer environment and the market dynamics. After these multi-faceted observations and analysis of environmental conditions, a total of 20 strategic issues were identified and six strategic thematic areas were formulated.

In this strategy, the company’s vision, mission and values which were in use ​​for the past 10 years are changed in a way that allows it to have a winning and leading position in the competitive market considering its current institutional capacity, the market and industry conditions, and are presented as follows:

A Leading Digital Solutions Provider

Provide Reliable Communications & Digital Financial Services to Simplify Life, and Accelerate Digital Transformation of Ethiopia.

 Human-Centric

 Integrity

 Excellence

 Socially Responsible

 Togetherness

Our company aims to realize the defined strategic thematic areas: Supreme Customer Experience, Sustainable Business Growth, Excellence in Technology & Solutions, Operational Excellence, Leading Brand and People-centric High performing company by properly managing its human resources, knowledge and resources and strives to be a leading company preferred by its customers, partners and stakeholders.

The strategy is designed to satisfy the ever-changing customer demand, digital inclusion to create better digital economy, financial inclusion, enhance productivity, shift the revenue from traditional revenue streams to value added and content driven services by introducing new business streams and solutions.

In the competitive market, we shall work towards satisfying our customers who are the basis to our company’s existence by providing various service options that will increase their loyalty, improving our services accessibility, facilitating digital channels, improving post-sales services to enable them to have better experience, and implement network expansion programs that increase the quality of service and network density.

To boost customer’s satisfaction and ensure customer loyalty, we are working on creating easy customer journey by simplifying offers, availing multiple products and services, empowering our customers, enhancing after sales services and enhancing loyalty programs. In addition, we are working on improving our services accessibility, facilitating digital channels, engaging more partners, offering subsidized and installment based handsets and availing credit services etc.

The strategy will also continue to focus on the most important company asset – employees, to equip them with relevant knowledge and develop high performance culture, with skill that will enable them to grasp and catch up with the telecom industry dynamism, to exploit opportunities arising from development of the industry and cope with the challenges.

Telecom business needs collaboration and concerted efforts of all players in the ecosystem, to this end, the strategy will be discussed with partners including vendors and distributors, content providers and other stakeholders. This will further enhance strategy execution, shortening of TTM, meet customer demands by adopting new solutions and insights.

Potential challenges during the strategy period are: service outages related to security, lack of supply of foreign currency, market competition, market instability and inflation, global supply challenges, infrastructure damage, telecom fraud and cyber-attacks, regulatory issues, etc. Various solutions and programs are designed and being implemented with a separate work unit assigned to solve the threats and challenges identified by the strategy.

In the 2015 fiscal year, our company plans to make multifaceted efforts to provide quality services that increase customer satisfaction and improve experience, especially through network and system capacity enhancement and improvement projects to secure the company’s market share, as well as new technologies to provide services. Data traffic growth based expansions of 3G and 4G/LTE Advanced services, network capacity and coverage enhancement activities, 5G pre-commercial expansion, backhaul and transport network capacity enhancement activities, Fixed  broadband capacity enhancement, enterprise, solutions, mobile money and digital financial services, cloud services, Operations support system and Corporate Solutions projects as well as security solutions and technologies to provide new services and various civil construction projects are planned to be implemented.

In this fiscal year, we plan to increase our subscriber base by 10.3% to reach 73.5 million and increase our mobile voice customers by 10.5% to reach 71 million and increase the number of fixed broadband customers by 37.4% to reach 696.7 K and increase tele density by 68%.

We aim to generate 75.05 billion birr, a 22.4% increment, by engaging in new business streams and shifting revenue source from traditional to value-added services, offering local and international products & services to the market, increasing telebirr’s access, service types and partners, improving service delivery and by increasing customer satisfaction, retention and loyalty.

It has been two months since our company started implementing its newly devised LEAD strategy, and in the first two months it already has achieved 98% of its target. To keep satisfying our customers and increase their loyalty, we have released different products and services enclosed here with.

Finally, we would like to extend our most sincere gratitude to our management and employees, customers, business and media partners, vendors and stakeholders for their continual support and contribution in our journey.

Togetherness with superior service!

Happy New Year! Have a Good Working Year!

Ethio Telecom

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Ethio telecom’s BRIDGE Strategy for 2019–2022 and 2019/2020 Business Plan

August 31, 2019 Semonegna Business 0

Ethio telecom, Ethiopia’s sole provider of integrated telecommunications services, unveiled a new action plan, abbreviated as BRIDGE Strategy, for the time period from 1 July 2019 to 30 June 2022

ADDIS ABABA ( Ethio telecom ) Telecom service has been recognized as an enabler for the socio-economic growth of a nation and plays significant role in overall betterment of citizens’ life. Ethio telecom has been serving the nation for the last 125 years. The company has been engaged in multifaceted reform initiatives to bring operational excellence, ensure affordable and quality services, enhance strategy execution capability, empower and build leadership and staff capacity, and shorten TTM and competitiveness.

Following the government’s direction to reform the Ethiopian telecom market, to create a competitive space, Ethio telecom management has taken its own initiative to develop a three-year strategic plan to get ready for the upcoming change, reshape the company and lead with business orientation and competitive mindset.

This strategy has been developed with in-house capacity following both deliberate and emergent strategy development approaches to accommodate a changing reality, considering the nature of the business and the ongoing market reform. The strategy assumes that in the first year of strategic period, there will not be other operators in the market and no ownership change to Ethio telecom . Furthermore, if any change happens in the course of the year, the strategy is flexible to accommodate the changes.

• Also read: Ethiopian Coffee and Tea Authority launches national coffee brand, plans to build Coffee Park in Addis Ababa

To ensure competitiveness and sustainable growth of the company, this strategy has been developed by considering and reviewing relevant government policies, international best practices and Industry trends. Various important analyses have been made such as internal and external stakeholders’ interests and expectations (customers, employees, vendors/suppliers and various government organs), previous company performances, internal strengths, organizational resources and capacities, and weaknesses, opportunities and threats in the outer environment (PESTLE) and the upcoming competition.

The strategy has been reviewed at senior and middle management levels, consulted and validated by Ethio telecom Board of Directors. Following validation, communication, cascading and alignment of the strategy have been conducted to improve strategy execution among different work units and at the individual level.

The strategy has been abbreviated as  BRIDGE Strategy to symbolize progress, connection, overcoming obstacles, transition, stability and hope, which fits the company situation while making itself ready for different tomorrow, competition, and striving to be a preferred telecom operator.

The strategic themes developed for the coming three years are:

• B est customer experience,
• R eputable brand,
• I nnovative product/service and technology excellence,
• D evelop people-oriented learning organization,
• G rowth in financial capacity, and
• E xcellence in operation.

Read the complete story at Ethio telecom

• BRIDGE Strategy
• Ethio Telecom

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Project Paper on Enterprise System of Ethio Telecom Group Members (Section I): Submitted to

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Dejene Deriba

The purpose of this quantitative descriptive research study was to assess the level of service quality and to identify the most important service quality dimensions that influence overall customer satisfaction. Five dimensions of the SERVPERF scale namely; tangibles, reliability, responsiveness, assurance and empathy were used to measure the perceptions of customers of Ethio Telecom. The research was conducted using data collected through a survey of enterprise customers in Addis Ababa. 220 questionnaires were sent to the sample of the study and 170 usable questionnaires were obtained with a response rate of 77%. The findings revealed that three of the service quality dimensions: reliability (t-value= 4.06 p <.001) empathy (t-value= 3 p<.005) and tangibles (t-value= 2.129 p<.005) influence the dependant variable overall customer satisfaction. The findings also indicated that overall service quality was found to be influenced by four of the five service quality dimensions namely, reliability (tvalue= 4.684 p <.001), empathy (t-value= 3.05 p<.005), responsiveness (t-value= 2.187 p<.005) and tangibles (t-value= 2.0 p<.005). Reliability, empathy and tangibles were found to be predictors across both overall service quality and customer satisfaction. The study recommends Ethio Telecom to concentrate on these dimensions to achieve.

Cherinet Alemgena

Abstract The primary purpose of this research is assessing the Role of Service Quality on Customer Satisfaction in Ethio Telecom at South Region: Case Hawassa Cit. To achieve this objective both primarily and secondary data were collected. The questionnaires were distributed to 380 fixed line telephone customers in Hawassa city. As a way of trying to measure service quality, researcher was developed a methodology known as SERVQUAL a perceived service quality questionnaire survey methodology. SERVQUAL examines five dimensions of service quality: Reliability, Responsiveness, Assurance, Empathy, and Tangibility. The collected data were analyzed and interpreted by Statistical Package for the Social Sciences in version 20. From the results obtained, the consumers perceive service quality as poor in all dimensions, indicating their expectations was higher than their perceptions for fixed line telephone service at ethio telecom. In this regard, consumers were not satisfied with any dimension of service quality. All dimensions were showing a negative gap score. Ethio telecom need to make improvements in all dimensions in order to close gap and that could lead to increased customer satisfaction. Thus the paper, enlighten the Company to get insight about its services quality and level of customers’ satisfaction. Ethio teleocm need to improve its service quality provisions and helps customers to get quality fixed line services from ethio it by amending the problem which was recommended in this thesis. Keywords-: Service Quality, Customer Satisfaction, SERVQUAL, fixed line telephone, Ethio telecom

Touzani Anas

19th IBIMA Conference, Barcelona

Achmad Nizar

Enterprise Resource Planning (ERP) systems is a complex mega-packages, integrated, and all-encompassing, system designed to support the key functional areas of organization. As a complete systems, ERP has huge impacts in business especially in helping companies for reaching competitive advantage for their business. The large amount of investment has been made by company to implement this system. However, there are various results of ERP implementation in the companies, from those who gain the huge amount of profit to the ones who get huge disaster. Therefore, it is important for the company to know whether their expenses bring benefits to the company or not. This research aims to formulate a catalog of ERP implementation benefits, which later we used to measure the benefits gained from the ERP implementation in an agricultural company. The catalog was developed by using the five dimensions from Shang and Seddon of ERP system implementation benefits and 73 subcategories of dimension from Ranti’s Generic IS/IT value. Our analysis in the company by using our proposed catalog showed that they have gained the benefits of ERP implementation in the following dimension: operational, managerial, strategic, IT infrastructure, and organizational with the total of 25 categories and 41 subcategories were accepted.

Paul Rauseo

Ehab Radwan

Procedia - Social and Behavioral Sciences

A.Zafer ACAR , BATUHAN KOCAOĞLU

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China's industrial output growth slowed to a five-month low in August, while retail sales and new home prices also weakened further, raising the case for bolder stimulus to shore up the world's second-largest economy.

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Ethio telecom 2023/24 Semi-Annual Business Performance

• January 23, 2024

This report covers the performance period from July 2023 to December 2023.

Cognizant of the relevance and multiple active role Ethio telecom has in our country’s overall progress and prosperity, our company has been undertaking a wide range of projects and operations to expand telecom infrastructures and systems, improve the quality of service and increase the outreach of benefits to the community. In particular, we have been resiliently working hard, enduring the challenges in the current crises to become a competent and preferred telecom service provider in the fast and dynamic telecom market to meet the growing demand for telecom services.

Our company is achieving excellent results by designing and implementing its three-year LEAD growth strategy to realize its aspiration to become a leading digital solutions provider in the competitive telecom market while playing its enabling role for the overall progress and prosperity of our country and realize digital Ethiopia.

This year is the midpoint of the strategy period and in the first half of the budget year, our company has conducted vast activities and advancements to attain its set strategic objectives, enhancing customer experience and satisfaction through ensuring operational excellence; deploying new and enhanced infrastructure and systems, service availability, quality and affordability; effective resource utilization and enhancing financial capacity, devising cost optimization strategies.

In addition, extensive work has been done to ensure financial inclusion, bring new services and convenient procedures and make institutions use digital payment options, support government and enterprise institutions with technology and strengthen collaboration, prevent telecom fraud and cyber-attacks in an organized and complete manner, build leadership and staff capacity building and empowerment, and building reputable brand.  

NUMBER OF TELECOM SUBSCRIBERS

During the first half of the budget year, our total subscribers reached 74.6 million achieving 98.3% of the subscriber base target. This increment is a 4.7 million or 6.7% increase from the previous budget year similar period. When seen in terms of service types, Mobile voice subscribers reached 71.7 million , Fixed broadband 688.3 K , fixed Voice 834K and data and internet users reached 36.4 million . Telecom density has reached 68.5%.

PRODUCTS & SERVICES EXPANSION AND NETWORK CAPACITY & COVERAGE ENHANCEMENT  

This performance in customer base is realized through the network and system infrastructures expansion and optimization works that enhance customer experience and satisfaction, the expansion of more service centers and engagement of more distributors/partners, the release of new products and services, the commercialization of 5G services in Addis Ababa and certain regional cities, as well as through the offering of 114 (64 new and 50 revamped) local and international products and services.

In terms of enhancing quality of services, network coverage & capacity, various projects are underway while 5G mobile technology service is already commercialized in certain cities. During the half-year, vast mobile network expansions and capacity enhancements have been done to serve additional 678.2K customers over a 3G network , 1.1 million customers over a 4G network , 148.2K over a 5G network. As a result, a total capacity of serving additional 1.9 million customers were created, which brought the total mobile network capacity to 81 million .

RURAL CONNECTIVITY  

During the half year, 41 new mobile stations that can accommodate 229,000 customers have been made on air in rural areas providing services in 10 regions and 41 woredas . In addition, 3G expansion works have been carried out on 92 existing sites in rural areas .

REVENUE PERFORMANCE

During the half-year, our company generated a total of 42.86 Billion ETB in revenue and achieved 98% of its target through expanding its revenue sources, providing affordable new and revamped products and services, and providing various mobile finance and digital services. This income when compared to previous year same period, shows an

8.86 billion ETB or 26% increment. The revenue share when described in terms of service types shows 41.8% share for mobile voice, 25.7% for data & internet, 9.3% for international business, 8.7% for value added services, 5% for devices (handsets, dongles, modems) and 1.1% for infrastructure share, 2.5% for telebirr and 5.9% share from other services. From foreign currency generating services (international interconnect, roaming, infrastructure share and international remittance) 84.7 Million USD was generated, achieving 109% of its target. This achievement was made possible due to the increase in the amount of traffic handled by all services which when compared to previous year same period has shown a growth of 33.6% in voice traffic, 53.8% in mobile data, 77.4% in SMS, and a 30.1% in international traffic.

Our company was able to save more than 2 billion ETB by implementing cost saving strategies, achieving 113% of its target.

Based on our company’s internal financial report (a report that is yet to be audited), our company has registered 46% or 19.77 billion birr in Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) achieving 137% of its target while it generated a net profit of 11 billion birr, which is a 14% growth compared to the same period last year, and a profitability rate of 26%. This was made possible due to the outstanding works done in diversifying and increasing revenue, cost optimization initiatives and effective utilization of resources.

In this first half year, our company has paid 18.5 billion birr in tax, 2.46 billion birr ( USD 43.4 million) in loan repayment and 4 billion birr in dividend. Our company has been recognized and awarded at various times as an institution that is playing a major role in

the overall development of the country. In 2015 EFY, it was recognized as a platinum tax payer by the Honorable Prime Minister under the scheme of the Ministry of Revenues for paying an annual tax of 21.9 billion birr .

Our company has been conducting financial audits on time to ensure financial transparency and to implement the regulations and guidelines issued by regulatory bodies and is issuing its financial reports in accordance with the International Financial Reporting System (IFRS). Accordingly, the 2015 fiscal year financial report has been examined by external auditors and it has been confirmed that it is unqualified. In addition, the first quarter of 2016 financial year has been audited and the second quarter has been audited.  

TELEBIRR AND DIGITAL FINANCIAL SERVICES

Telebirr has acquired 41 million customers in the half year, achieving 104% of its target with a transaction value of 910.7 billion. Since its launch, a total of 1.7 trillion birr has been transacted in the economy. Telebirr has been recognized as the gold award winner by the Future Digital Accreditation Institute in 2023 in the best mobile money supply sector for its significant role in building a digital economy and ensuring financial inclusion in our country.

telebirr digital financial services namely telebirr sanduq, telebirr Mela, telebirr Endekise, telebirr sinq, telebirr enderas, telebirr adrash were launched in partnership with Dashen Bank and Commercial Bank to ensure access to financial services and promote financial inclusion. As a result, micro loan services of over 8.3 Billion Birr were provided to 3.8 Million customers whereas 1.5 million customers were able to save more than 8.4 billion birr.

In order to ensure accessibility as well as benefit our partners, 889 service centers, 149 master agents, over 145.9K agents and over 143.6K merchants have been engaged so far. In addition, integration with 25 Banks is completed enabling money transfer from Bank to telebirr and vice versa.

As part of realizing digital Ethiopia, 602 governmental and non-governmental institutions including the Ministry of Foreign Affairs, Ministry of Innovation and Technology, Ministry of Trade and Regional Cooperation, Immigration and Citizenship Service, Ethiopian Airlines, Addis Ababa City Administrative Revenue Bureau, Oromia Region Revenue Office; The National Lottery, various universities etc have integrated their payment

system with telebirr. As part of fuel management digitalization initiative, 1,447 gas stations have started receiving fuel payments via telebirr and with this, more than 54 billion Birr fuel transactions (both subsidized and non-subsidized) were managed through telebirr.

Through the expansion of different partnerships in the ecosystem such as bank-to-wallet and wallet-to-bank money transfer partnerships that increased customer convenience and accessibility and engaging in utility payment services, microfinance and other new services, our company has registered an average of 1.13 million new customers per month in the last six months.

HUMAN CAPITAL, CAPACITY BUILDING AND CONDUCIVE WORK ENVIRONMENT

To effectively execute the company’s strategy, to ensure sustainable growth and profitability of our company in the competitive market, developing competent leadership team and staff is a key priority that needs continuous investment and attention. Accordingly, in the fiscal year, various capacity building interventions were made with more than 15.1K employees attended online training while 6.2K employees attended in person training.

In addition, employees were made to participate in the organization’s strategy preparation and performance evaluation to enhance the employee’s motivation and ownership spirit. improve the supply of work equipment, to ensure a comfortable and safe working environment, and to create a better working environment by implementing various incentive systems. Since employee dedication is critical to the company’s competitiveness and success, a survey of employee engagement was conducted with McLean & Company, an internationally experienced research firm. Corrective measures shall be taken based on the findings from the study.

CORPORATE SOCIAL RESPONSIBILITY

As part of its Corporate Social Responsibility and Its commitment for the societies overall progress, our company’s interventions have continued to have a positive impact on society, environment, and all stakeholders. Its CSR projects focused in strengthening

communities by targeting the fundamental drivers of long-term development such as education, health, agriculture, environmental protection, greening and beautification of cities. In the half of the year, it has contributed a total of 449.6 million birr in kind and in cash for education, health, humanitarian aid, environmental protection, greening and beautification and for national projects.

Ethio Telecom is highly committed to environmental protection activities and greenery programs, and accordingly, over the years, millions of saplings have been planted in several stations by involving employees.

In addition, the corporate spirit is also reflected by our staff across the country by voluntarily mobilizing more than 5.2 Million ETB for various humanitarian activities. Also, their material and in-service support including blood donation has been enormous.

CHALLENGES AND UNDERTAKEN SOLUTIONS

During the half year, our company has faced different challenges such as service outage due to security problems in different parts of the country, power interruption, lack of foreign currency, fiber and copper cable vandalism, land acquisition delay, shortage of construction materials, telecom fraud etc.

The outstanding performance recorded amid the challenges and the competitive market is very encouraging and motivates for more efforts and success.

Finally, we would like to extend our most sincere gratitude to our employees, our customers, vendors, business partners, the media and other stakeholders for their contribution to the outstanding performance in the budget year.

23 January 2024

ETHIO TELECOM

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