Liberalization of Ethiopia’s Telecoms Market

Ethiopian government has revealed plans to open up its market to international investors, announcing plans to auction off two 15 year licenses to prospective mobile network operators to provide services across the country. The licenses are expected to rise over $1 billion in revenues for the government, and the government received applications from 12 international and regional telcos to participate in the proposed auction.

The government is suspending the potential entry of foreign telcos into the country’s telecoms sector, as it looks to protect revenue streams for its incumbent operator.  The government has decided not to allow foreign telecom infrastructure companies. They will not be allowed to operate here. It remains unclear as to whether the Ethiopian government will proceed with plans to allow foreign investors to purchase a 40 per cent stake in Ethio Telecom.

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