የኢትዮ ቴሌኮም 2013 ዓ.ም ዓመታዊ የሥራ አፈጻጸም ማጠቃለያ ሪፖርት

This report covers performance period from 01 July 2020 to 30 June 2021.

Telecom infrastructure and services have been recognized as enabler and catalyst for the socio-economic development of a country. Cognizant of relevance and multiple active role Ethio telecom has in our country’s overall progress and prosperity, our company has been undertaking a wide range of projects and operations to expand telecom infrastructures and systems, improve the quality of service and increase the outreach of benefits to the community. In particular, we have been working hard to become a competent and preferred telecom service provider in the fast and dynamic telecom market to meet the growing demand for telecom services.

Ethio telecom commenced the budget year with the implementation of its three years BRIDGE growth strategy along with the 2020/21 yearly plan to realize its aspiration to become a preferred telecom operator among customers and partners. Our company has conducted vast reform activities and advancements to attain its set strategic objectives- preparing for the upcoming competitive market, enhancing customer experience and satisfaction through ensuring operational excellence; deploying new and enhancement of infrastructure and systems, service availability, quality and affordability; effective resource utilization and enhancing financial capacity. Leadership and staff capacity building and empowerment; building reputable brand were also among the priorities.

We have garnered a total of 56.5 Billion ETB revenue, which is 101.7% of the target and 18.4% increment from the previous budget year similar period. This achievement is realized through network optimization works to enhance customer experience and satisfaction; offering 34 new and 28 revamped local and international products and services. Mobile voice accounts for 47.5% of the total revenue while Data and Internet contributes 27%, International business shares 11%, Value Added Service accounts for 9.5% and the remaining 5% comes from other sources.

This year’s overall performance has shown a 66.7% increment compared to our performance recorded in June 2018 due to the execution of our 3 years’ strategy, reform and vast expansion works undertaken.

During the period, 166.5 Million USD foreign currency was generated from international business and scored 106% of the target; showing an increase of 13% from previous budget year. This achievement is made possible because of commercialization of new revenue streams generating foreign currency and technical solutions deployed to prevent telecom fraud through establishing collaborations with our international business partners in a consistent and in a manner that ensures mutual benefit.

In the reporting period, we have paid 26.6 Billion ETB tax and 1 Billion ETB dividend, effected

327.5 Million USD, an equivalent of 13.6 Billion ETB payment for loan – for projects implemented under Vendor-financing modality.

Our total subscribers reached 56.2 Million achieving 108% of the subscriber base target and an increase of 22% from June 2020 landing. Mobile voice subscribers reached 54.3 Million, Data and Internet users 25 Million, Fixed Services 912K and Fixed Broadband subscribers reached 374K. Population and geographic coverage are 95% and 85.4% respectively. Telecom density has reached 54.8%.

 Currently, we are running 132 projects on infrastructure and system capacity expansions and enhancements aiming to boost network coverage capacity and quality of services out of which projects like expansion of 4G/LTE and 4G/LTE Advanced, Modular Data Center, smart poles, Next Generation Business support system are completed.

In order to meet the growing demand for data and internet services, demand based 4G/LTE Advanced expansions have been done in Addis and also for the first time outside of Addis Ababa in 68 towns in Northwest, Northeast, East, Central-East, South South West, North East East, Southwest, Southeast, South, North North West regions. In addition, 4G enabler handsets were provided at an affordable price in those regions where the 4G/LTE Advanced services were launched. Preparations to reach other regions with the 4G/LTE Advanced services are underway.

Furthermore, in preparation for the upcoming competition, we have been focusing on enhancing our execution capacity and have recently engaged in the Mobile Money business introducing our “telebirr” with the aim to meet the country’s growing demand for digital financial services. Our “telebirr” subscribers have reached a total of more than 6.58M within two months with total transaction value of ETB 357M. More than 21,000 agents and merchants have been engaged so far to ensure service coverage.

To ensure sustainable business growth, various capacity building interventions were made, including training 15,000 employees. Along with other interventions, employee engagement in strategy development & execution, work environment enhancement and safe & healthy working conditions, various compensation and benefits systems. Our company has created job and income opportunities for more than 337K citizens, of which significant majority are partners who distribute our products and services while the rest are indefinite and definite term employees and other partners engaged in outsourced businesses.

As part of Corporate Social Responsibility and our commitment for our societies overall progress, our interventions have continued to have a positive impact on society, environment, and all stakeholders. Our CSR projects focused in strengthening communities by targeting the fundamental drivers of long-term development such as education, health, agriculture, environmental protection, greening and beautification of cities. We have contributed in kind, in service and in cash more than 847 Million Birr to address pressing societal challenges.

This corporate spirit is also reflected by our staff across the country by voluntarily mobilizing more than 5.5 Million ETB for various humanitarian activities. Also, their material, blood donation and in-service support has been enormous.

Our management and staff have been working to ensure connectivity as telecom service is critical to mitigate disruptions to economic and social activities of our country as the result of the Corona pandemic. We have committed huge resource and attention in prevention of Covid- 19, communication and awareness creation through the replacement of ring tone message with COVID-19 related messages and providing short codes for Federal and regional governments, providing free access to Ministry of Health and Ethiopian Public Health Institute web pages providing COVID-19 related information, and availing free access to educational materials to ensure continuity amid of the pandemic, facilitating and supporting fund raising from within and

abroad, 41M ETB financial contribution to fund Ministry of Innovation and Technology sponsored research on COVID-19, etc.

Among the challenges we faced during the period, COVID -19 and crisis in July 2020 and from November 2020 in parts of the country, which have compromised expansion and enhancement projects implementation, supply chain, increasing operational costs and revenue impacts. In addition, fiber and copper cable vandalism, commercial power interruption, many relocation requests, and delay in land acquisition for new sites deployment were among the main challenges.

In summary, our company’s performance for the 2020/21 budget year is outstanding, given the challenges posed by COVID-19 and the security issues in some part of our country.

This outshining achievement is only made possible because of the commitment of our company leadership and employees to make Ethio telecom a preferred operator. During the reporting period, on the top of running the business, the leadership team’s stamina and concerted effort in managing the operation and projects.

Finally, we would like to extend our most sincere gratitude to our customers, business and media partners, vendors and stakeholders for such outstanding performance.

13 July 2021