Kenya’s mobile network operator Safaricom has officially launched its network in Ethiopia, which makes it the first private operator in one of Africa’s largest telecom markets.
This is Safaricom’s first expansion outside Kenya, where it holds a virtual monopoly in the telecoms and mobile money sectors. Its expansion into Ethiopia will see it compete with the Ethiopian telecommunication company Ethio telecom, previously known as the Ethiopian Telecommunications Corporation.
The state-owned Ethio Telecom has for a long time operated as a monopoly telecoms company, with 54 million subscribers in Ethiopia.
Following Safaricom’s launch in Ethiopia, the network operator intends to roll out its services in 14 cities between now and April 2023 to cover 25 cities, so as to enable it to meet the 25% population coverage obligation in its license.
Speaking on its launch in Ethiopia, the CEO of the company Peter Ndegwa said, “Today I am delighted for the opportunity for Safaricom Ethiopia to start serving the people of Ethiopia with high-quality telecommunications services.
“We look forward to sharing our vision of Transforming Lives with Ethiopians, working together to uplift communities, and creating opportunities through the transformative power of the mobile phone.
“We are optimistic about how the technology and connectivity we are providing will contribute to a digital future and eventually transform people’s lives through digital solutions.”
“We have deepened digital and financial inclusion in Kenya by connecting people to people, people to opportunities, and people to information.
“With these lessons and experiences, we look forward to positively impacting the people of Ethiopia with a sustainable and quality mobile network that will be a vital launch pad for nationwide digital telecommunications services to over 118 million Ethiopians.”
Experts have disclosed that Safaricom’s expansion of its network into Ethiopia can be a potential win for the company, if it can replicate its successes in Ethiopia outside Kenya where it has strong dominance in the Kenyan market, both in the Telecommunications Industry and in mobile money, Investor King understands.
The Safaricom network will offer 4G data, voice, and SMS services between Safaricom Ethiopia and Ethio Telecom customers.