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Ethiopia telecom to remain a state monopoly

Published: Jun 28, 2013 Filed under: Ethiopian News Tech & Science Views: 2,272
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Addis Ababa, Ethiopia – Prime Minister Hailemariam Desalegn of Ethiopia, whose country applied for the World Trade Organisation (WTO) accession in 2003, has opposed the liberalisation of the telecom sector.

Mr Hailemariam has said the sector would remain a government monopoly, in order to generate revenue for a railway project.

Speaking at the National Business Forum with the private sector in Addis Ababa Thursday, Mr Hailemariam argued that if Ethiopia liberalised telecoms, the government would be unable to generate 6 billion birr ($323 million) per annum from the sector, which Addis was currently using to finance the Ethiopia- Djibouti railway project.

“You may think that the government can get money from taxation; but there is no way that we can generate this much from taxation,” the Premier said. “Therefore, the sector remains with us (government) for the years to come.”

However, experiences of neighbouring countries tell a different story. In 2012, Uganda generated $600 million from half a dozen operators, including the state-owned Uganda Telecom.


The country was expecting an increase of some $12 million from the new tax expected to be effected next month. According to a Gallup survey mobile operator, revenue in Africa topped $41 billion in 2012, 11 per cent up from the previous year.

Kenya, Uganda and Tanzania boast the highest rates of mobile money transfer in Africa last year. In addition, Gallup survey also shows remittance transfer using mobile phones, which is not available in Ethiopia, was being used in Kenya, Uganda and Tanzania.

Source: AfricanReview.com


The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, DireTube.com or Refresh Media P.L.C.

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Comments

  1. why telecom?
    why telecom?
    9 months, 3 weeks ago

    What is with the telecommunication sector that the whites are eager to get their hands on ????

    why do they ask about telocom every now and then ?
  2. Alemnesh Beza
    Alemnesh Beza
    9 months, 4 weeks ago

    I absolutely agree with our PM decision, because our national interest comes first. Our countries interest means for the whole of Ethiopians basic needs. We must complete what development we have started. We shouldn't listen to the people who are denigrating comments about Ethiopia. Because they do not want us to progress.
    Let's work together still we have a long way to go....
  3. RT
    RT
    10 months ago

    Mr Hailemariam has said the sector would remain a government monopoly, in order to generate revenue for a railway project.
    I completely agree with Hiliemariam.. Ethopia not USA, we still has a long way to go, just to give up billions of dollars revenue to private corporation to run it, for the fact that, we need to use our monty for railway, schools, effective pulblic health care systems, etc.
  4. TURE
    TURE
    10 months ago

    Grima,

    DO YOU THINK AMERICA DOES NOT LISTEN TO YOUR PHONE OR INTERNET...... MAMO KILO AREKENE ENDE. GO FOOL THE TAXI DRIVERS AND GOAT HERDERS NOT THIS ADDIS ABABA ARADA ABO. GO FOOL SOMEONE FROM GONDER YEFEREDEBET BALAGER. NOT ME BRO TO ARADA FOR YOU.
  5. Obsi
    Obsi
    10 months ago

    Apart from being sources of revenue, certain aspects of the economy, particularly those which could easily be monopolized, and result in price hikes, should remain in the public sector at least, until the income of the society grows significantly high and everyone could afford to use the services. However, the state should also make sure such sectors are run efficiently and progressing well.
  6. dj
    dj
    10 months ago

    Even in America, the government has a power to listen your conversation ! This days it is necessary to listen what peoples are saying, because , some terrorist are using the internet and phones to kill innocent people ! If you talk about love, no body cares what you are saying !!! IT IS A NATIONAL SECURITY ISSUE !
  7. Grima
    Grima
    10 months ago

    this way of saying as long as TPLF is in power our way of controlling the people , no freedom what to watch. what to listen. we will block any Ethiopian from contacting the out side world.