Facing increased competition ahead of the entry of a third telecom operator in Ethiopia, Ethio Telecom has unveiled an ambitious new three-year strategic plan titled “Next Horizon: Digital & Beyond 2028.” Launched on August 26, 2025, the plan is designed to sustain and expand Ethio Telecom’s market leadership by diversifying revenue streams and accelerating digital transformation.
Ethio Telecom, which has long been the sole telecom operator in the country, is preparing for a rapidly evolving and competitive landscape as the third operator prepares to enter the market by 2026/27. CEO Frehiwot Tamiru described the Ethiopian telecom market as “rapidly changing” and emphasized that while Ethio Telecom has achieved many successes driving Ethiopia’s digital agenda, continued innovation and regulatory support are critical to maintaining its dominant position.
In her remarks at the plan’s unveiling, Frehiwot stressed the importance of an enabling regulatory environment alongside technological advancement. She called for reforms to ease current restrictions within the regulatory framework and pledged to collaborate with relevant stakeholders to resolve outstanding challenges, particularly those related to market competition and service quality.
The strategic plan highlights several key focus areas, including boosting customer loyalty, developing tailored solutions for small and medium-sized enterprises (SMEs) and rural markets, and launching new digital services. Ethio Telecom also plans to address external economic pressures, such as inflation, diminishing consumer purchasing power, and foreign exchange shortages, by exploring local resource sourcing, strict cost control measures, and alternative funding sources.
The “Next Horizon” plan envisions robust growth for the country’s telecommunications ecosystem over the next three years. Projections include increasing the total number of telecom subscribers to 100 million by 2028, with mobile voice and broadband users expected to rise significantly. Mobile broadband subscribers alone are forecasted to reach 67.3 million, alongside 1.6 million fixed broadband customers.
Ethio Telecom’s flagship mobile money platform, Telebirr, is slated for remarkable expansion, with user numbers expected to grow by 36.8% to 75 million. Transaction volumes are projected to surge by 334%, reaching 21.3 trillion birr, while the number of transactions is forecasted to jump 439%, exceeding 10 billion. Revenues from Telebirr services are anticipated to increase sixfold, fostering a strengthened digital financial ecosystem with over 960,000 traders and 840,000 agents.
The company forecasts total revenue of 842.3 billion birr over the plan period — a 154% increase compared to the previous strategy. This growth will stem not only from traditional telecom services but also from expanding enterprise solutions, equipment sales, and emerging digital services. Foreign exchange earnings are also expected to grow, reaching approximately US$976 million.
Ethio Telecom reaffirmed its commitment to contributing substantially to the national economy with plans to remit 253 billion birr in direct and indirect taxes and deliver over 111 billion birr in dividends to the government within the next three years.
