By Dawit Astatike
The state monopoly, Ethio telecom disclosed its three year strategic plans on Friday at its headquarters to prepare for the upcoming change that enables the company to be a competitive telecom operator following the direction of the Ethiopian government to reform the telecom sector market for international companies.
Frehiwot Tamiru, Chief Executive Officer (CEO) of Ethio-telecom briefed journalists on company’s three year strategy that will be executed from July 2019 to June 2022.
The strategy is unique as it is self-initiated and developed by in-house experts through considering the policies and strategies of the existing realities of country, contrary to previous experience where international consulting firms do it.
“The main objective of the plan is to increase the company’s competitiveness and efficiency by reshaping the company and to lead the business orientation in a competitive mind set,” adds the CEO.
The first year of the strategic plan assumes there will not be other operators in the telecom market and no ownership change is made as the ministry of finance which is responsible for conducting a study on the engagement of foreign companies in the sector has a long way to go.
This creates space to do our assignment better in spite of the fact that the strategy is flexible to accommodate any change that happens in the course of the year.
The strategies that have 20 major objectives address digital inclusion to create a better digital economy application programming interface for mobile money.
Ethio telecom presented a study to the National Bank of Ethiopia to work on mobile money in a bid to create a cashless society and work on financial inclusion.
The company also created a major business plan for this fiscal year to improve the quality of service accessibility, network expansion and alternative power solutions that will be implemented in Addis Ababa and regions. In this regard, more than five million additional mobile network capacity will be installed to improve the network coverage and capacity, which the same time double international gateway capacity.
The company also plans to increase its number of clients to 50.4 million and its revenue to 45.4 billion birr this Ethiopian fiscal year. The revenue shares will be 53 percent from mobile voice, 33 percent from data and Internet and the remaining from international business and value added tax.
In order to realize service accessibility, the company will add more than 70 shops that will bring a total of 438 shops in addition to 75,000 partner distributors and retailers to get all the service of the company.
Ethio-telecom announced 36.3 billion birr revenue in the concluded Ethiopian fiscal year, attaining 85 percent of the target.
The 125 year state monopoly, ethio-telecom has more than 15,000 permanent and 18, 000 temporary employees.
Ethio-telcom reveals three- year strategic plan
By Dawit Astatike