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Ethiopia's tribal junta stifles information technology growth

October 1st, 2009 |  |  6 Comments

Ethiopia's regime continues to monopolize telecom services including fixed, mobile, Internet and data communications. This monopolistic control has stifled innovation and retarded expansion.

The U.S. and WorldBank-financed tribal junta led by its genocidal leader Meles Zenawi, tries to encourage foreign investment in a broad range of industries by allowing foreigners up to 100% equity ownership. However, there is no official schedule for the privatisation of the national carrier and the introduction of competition, but once this happens, the potential to satisfy unmet demand in all service sectors is huge.

Ethiopia has the second lowest telephone penetration rate in Africa, but it recently surpassed Egypt to become the second most populous nation on the continent after Nigeria. [This is done on purpose by the U.S.-backed regime to keep the people of Ethiopian in the dark age]. However, it is also one of the poorest countries in the world with approximately 80% of the population supporting themselves through subsistence agriculture, which accounts for more than half of the country’s GDP.

Despite the monopoly situation, subscriber growth in the mobile sector has been excellent at a compound annual growth rate (CAGR) of almost 90% since its inception in 1999 and more than 100% in the past six years. However, demand has been even stronger, and ETC has been unable to satisfy it. Ethiopia’s mobile market penetration is still one of the lowest in the world at little more than 3%. Fixed-line penetration is even lower, and this has also impacted on the development of the Internet sector. Prices of broadband connections are excessive.

Improvements are beginning to develop following massive investments into fixed-wireless and mobile network infrastructure, including third generation mobile technology, as well as a national fibre optic backbone. Ethiopia is investing an unusually large amount, around 10% of its GDP, into information & communication technology (ICT). However, telecommunications revenue has grown only moderately in comparison, at around 16% per annum. It has remained under 2% of GDP, a low figure in regional comparison.





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6 Responses to “Ethiopia's tribal junta stifles information technology growth”

  1. Anibal says:

    Very sad! I was in Ethiopia recently. It is true internet cafes in Addis announce for their customers that they have broad band internet connection. But the fact of the matter is that you hardly notice the difference from a dial up connection. Little surprised, I went to the ETC office under my "kifle ketema" because that is what you are supposed to do for inquiries, go to your zonal adminstrations branch, may not be a bad idea if it helps for better service. After about 1 hour in the line up, mostly with people complaining about technical problems, I was directed to the gentleman responsible. I asked him about terms and conditions and what kind of services (speed, pricing, etc.) I am going to get if I want to subscribe for the broadband connection. His answer will shock you. First of the broadband is only for businesses not for individual personal use, and second, the broadband speed is 1.2mbp (probably 1/10th than we have here) and third, the price is 3600ETB per month (close to US 300). I don't think one can believe that. Many businesses I talked to said that the system is overloaded and it is more time than not they get connections at all. You think about the power shortage on top of that. The system is simply next to nothing.

    September 23rd, 2009 at 7:44 pm

  2. Why expand? John says:

    If the government allows for the opening of the telecommunications through privatisation, it will lose its stranglehold on the people. Communication means a sharing of ideals and communality. These are not desired, and go against the current program if dividing a nation my region, tongue, and tribe. If we all speak with one voice, if we all see with the same eyes, then we will all know of the crimes committed.

    September 24th, 2009 at 8:40 am

  3. medfu says:

    there is virtually no internet in ethiopia. it takes 45 minutes for website to load at internet cafe which has 20kb/s connection and 20 people logged on 20 computers. how sad.

    September 24th, 2009 at 3:34 pm

  4. SURAFAEL says:

    I love freedom I take for granted here in the west. I don't have to go to through such nightmares to go on line here. Infact, everywhere, has no free wifi hot spots almost everywhere. Libraries,schools, coffee stores, hotels,
    car repair shops,rest areas and the list goes on.

    When I read all difficulties Ethiopians go through to glance the information Highway In Ethiopia, I thank God, I don't live there. I feel sorry for young people who go to colleges in such country though. They've no clue, the internet they pay for are almost free in developed countries and timely infos are at the finger tips of youth here.

    Education is power, that power is on information highways and for poorest nations such as Ethiopia, its wise to leave information high wide open for youth to learn, as much as they can in speeds that produces resouceful youth.

    Give youth free access to computers and servers, where education begins.

    September 27th, 2009 at 6:09 am

  5. Stoner says:

    The government didnot stop earsdroping on calls of suspected opposition leaders and business competitors.How do you think the ginbot7 coup plot failed?Earsdroping is conducted by ETC telephone international operators on regular basis.They record phone conversations and give information to the Weyane. Wake up people ,Ethiopia have the most scandallous , arrogant , thick headed animals in the office. They will do anything possible to make life unliveable and destroy the country.

    September 29th, 2009 at 4:45 pm

  6. Anonymous says:

    woyane is determined to rule Ethiopia for
    ever if possible. The woyane hooligans are the most greedy people on planet earth. They consider themselves fortunate
    to rule over Ethiopia. a land of great bounty. They are determined to maximize their exploitation brfore they declare their independence. Now, they have decided to rule for the next five years
    in order to complete their infrastructure
    in their own region. This blue print is
    well documented. It will be regreted if we allow them to implement it.

    October 6th, 2009 at 8:33 pm

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