Ethio telecom has made structural change and management /employee/ re-shuffle aimed to stay strong for the coming competitive market.
The company has made its organizational re-structure starting from the budget year, Capital has learnt.
As sources from Ethio telecom told Capital, Ethio telecom has made one of the biggest structural changes after three years since Firehiwot Tamru took charge.
The structural change includes both management team re-shuffle and division folding. “It is made by watching its importance, to the coming competition,” said sources from the Ethio telecom, adding that the division folds were made by the purpose of their services.
Some divisions which were created following the coming of Frehiwot to the CEO chair to increase their productivity, “Currently most of the divisions are in good foot and there is no need for special follow up,” sources said.
In July 2018 the board of directors of Ethiopia’s lone telecom company, Ethio Telecom, appointed, Frehiwot Tamru as CEO replacing Andualem Admassie (PhD), at the time the company replaced 40 individuals who were working in different positions of the company. “Since then the company has been making certain changes continuously, yet this one is the biggest,” sources explained.
“There will be a strategy review to stay competitive when the new operators enter to the economic business zone,” said CEO Firehiwot Tamru recently in a press briefing.
The company which has more has 14,000 employees is underway to be partially privatized. The company is also preparing its five years business strategy to stay as the leading telecom service provider when the new operators start their operation in Ethiopia.
Government has liberalized Ethiopia’s telecommunications sector as part of the country’s ongoing reforms to promote social, political and economic development and on May, 2021 a new telecommunications license had been awarded to the Global Partnership for Ethiopia. According to Ethio Telecom, a comprehensive study has been carried out by Ethio telecom to protect its market and stay competitive.
As part of this ongoing liberalization process, last month the Government of Ethiopia has released a Request for Proposal (RFP) for the Partial Privatization of Ethio-Telecom to invite proposals from interested parties who can add value to the company by bringing in best practices in terms of operations, infrastructure management and next generation technological capabilities.
“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 source from traditional to value which is expected by the company following the privatization,” said sources
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%.
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 increased its capacity to every corner of the country and serve the people in good quality. In 2020/21 fiscal year, the company has continued scaling up its profit. The annual revenue for the fiscal year was 56.5 billion Birr. In the report, Ethio- telecom CEO, Frehiwot Tamru said that the company has been developing rapid infrastructure of services and expanded the internet access to 4G LTE connections. This has added the satisfaction of customers.
In the following three years, the company plans to change and achieve better services so that it aims to generate 70 billion birr revenue. It is simply learnt that the company has recorded bold revenue incomes. This is simply seen when we compare the planned revenue income with the previous ones. For example, in 2019, it was 22 billion Birr which had 32 percent different with the previous year of 2018. Again, last year the company achieved a total of 56.5 billion Birr revenue, which is 101.7 percent of the target and 18.4 percent increment over the previous budget year similar period.
As part of its home grown economic plan the government has announced to the liberalization of telecom sector apart from the partial privatization of Ethio Telecom, Last week Ethiopian Communications Authority (ECA) published a Request For Proposals (RFP) for its second new full-service telecommunications license. Awarded on July 2021, the Global Partnership for Ethiopia has quickly established its local headquarters in Addis Ababa and is preparing to launch its services to the Ethiopian.
At the end of the licensing process, there will be three operators with licenses to deliver high-quality telecommunications services in Ethiopia: Ethio Telecom, Safaricom Telecommunications Ethiopia and the new License holder.