LEAD, its successor to fly the firm even higher
By Metasebia Teshome
Ethio Telecom, under the timeframe of its BRIDGE strategy which spanned from 2019 to 2022 records marvelous results hitting well over 100 percent of its targets.
“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,” said Frehiwot Tamru, CEO of Ethio Telecom, on Monday September 26, 2022 whilst introducing the company’s new 3 year strategy ‘LEAD’ and the 2022/23 financial year plan to the media.
According to the CEO, through the implementation of the strategy, the company achieved 75.6 percent growth in customer base, 76 percent growth in revenue, a 104 percent growth in foreign exchange, 142 percent growth in net profit, and 125 percent growth in number of smart phones penetration across the country.
During the strategy period, the telecommunications firm had an 86% tariff reduction to increase its affordability and customer satisfaction with its 140 new and 166 revamped services.
As a succession follow up strategy, Ethio Telecom has now rolled out a new three year development strategy called LEAD, which is said to enable a thriving competitive market as the firm seeks to be a leader in digital solutions.
The development strategy, LEAD, is divided in three fiscal years from 2022-25. The first fiscal year 2022/23 has already seen implementations begin as from last month. The development strategy dubbed “LEAD” is believed to transform the state-owned telecom company into a competitive company.
“LEAD provides reliable communication and digital financial services to simplify life and accelerate digital transformation of Ethiopia,” said the CEO.
“Strategies are made to ensure competitiveness and sustainable growth of the company. The strategy has been developed by considering and reviewing new business streams and shifting revenue sources from traditional to value systems,” explained sources that Capital spoke to.
“The company has been using the BRIDGE strategy for the last three years which has been successful in transforming the company. However, it has now needed to change its strategy to LEAD, so as to continue its developments as a leading telecoms provider,” read the document sent to Capital, adding, “The Company has restructured its mission vision, values and strategic themes to go with the current telecom market.”
The three-year development strategy focuses on; being a leading brand, increasing customers base, excellence in operation, increasing accessibility and ensuring customer experience, deploying innovative and new products and services, and insuring the company’s successful operation.
In the first fiscal year 2022/23, Ethio Telecom plans to generate 75.05 billion birr in revenue which is 13.7 billion birr or 22.4 percent greater than 2021/22. The company plans to increase the total number of subscribers from 66.59 million to 73.47 million in 2022/23.
Consequently, the company aims to boost mobile penetration from 61.3 percent to 65.9 percent and the company hopes to increase its revenue from international business from 146.58 million dollars to 151.3 million dollars. In addition to the telecom service, Ethio telecom has planned to strengthen its telebirr share in the market by targeting to reach a customer base of 32 .6 million in 2022/23 from 20.9 million and also plans to gain 180.8 million birr in revenue from telebirr.
Ethio Telecom is currently engaged in various network expansion and telecom infrastructure capacity enhancement projects. The rollout of 4G/LTE has been completed in 136 cities and pre-commercial 5G services have been launched in Addis Ababa. Regardless of its current initiation and notable performance in expanding digital service for various sectors and high achievement in revenue earning, Ethio telecom is working to increase its capacity to every corner of the country in order to serve the people in good quality.
As part of expanding its income Ethio telecom has also plans to expand its services to neighboring countries in its three year LEAD strategy.