Ethio-telecom started a shop-in-shop project for six broadband gadgets, allowing them to be sold in their service centers by private suppliers. The telecom has invited businesses to install a sales corner in their existing service centers. So far three agreements have been made and a fourth was approved previously.
The companies are expected to come up with proposals and fulfill the listed requirements. They must have a renewed business registration, provision of after-sales service, provision of accessory supply, adherence with the working hours and brand management of the telecom and meet the quality requirements for the devices they sell.
“We were not able to meet our customer’s demand to provide gadgets for broadband after we decreased the service tariff,” said Mohamed Haji, Sales Officer at the Telecom. “Because of the scarcity in the devices, we were not able to sell our services which also affected our performance. We did a survey and we found out that outsourcing would solve the problem, then some companies approached us with proposals to sell the devices.”
In just a week, the telecom was able to attract close to six interested companies in addition to the ones that have already signed. We are still accepting applications, he added.
The companies are expected to work with their own staff and the telecom will be looking to the quality of the products provided by them. Also prior to the contract, the Telcom will cheek the device quality of the suppliers.
The companies are obliged to provide maintenance service for the gadgets they provide. The telecom provides the service to the customer. The companies only sell the devices; they do not have anything else to do with any telecom services.
The telecom has not bind itself in any commitment that would prevent them from selling a device in shops where the private operators are functioning. It is considering not being involved in selling broadband devices, according to Mohamed.
“We are facing foreign exchange problems hindering us from providing the devices,” said Mohammed.
The telecom is planning to implement the project in its 217 candidate shops. However, in this first phase we will only do it in 20 shops,” said Mohamed. “Response has been positive though it has only been a week since we announced the proposal. We do want other businesspeople to get involved, so far only people that have supplies in stock have approached us,” he added.
He went on to say that this is an example of a positive public-private partnership.
“We are implementing a win-win approach and we think this will make our customers happier. We were losing many services because of the gadget shortage so this should increase service sales as well.”
After the telecom announced a significant price discount for service the number of broadband Internet users has increased.
It was on November 2018 that the Telecom decreased broadband Internet price up to 54 percent, Mobile Internet and SMS service up to 43 percent and voice services up to 40 percent.
The former price which was adjusted in December 2016 was levied 35 cents on 2G/3G and 4G of mobile networks from the previous 46 cents for 2G and 3G and 55 cents for 4G.
Frehiwot Tamru, CEO of the Telecom, stated that the price reduction would not affect the revenue of the telecom.
In a related development, the telecom signed agreements with companies that won a procurement to work with Etio-telecom on a franchise basis.
Three companies are working in 94 service centers. Hedase Telecom took 82 shops around the country. Bravocom Plc which was formerly the sole agent of NOKIA Mobile took charge of shops as well.
Ethio-telecom begins outsourcing gadget sales
More roads
Eight roads, covering 600km will be built in Ethiopia at a cost of 16.3 billion birr over the next three years. The Ethiopian Roads Authority signed agreements last Thursday, with Chinese construction companies, Defense Construction Enterprise, Yencomad Construction and Sur Construction. The roads will be built in Afar, Oromia, Amhara, and Tigray regional states. Out of the eight road projects, five were awarded to Chinese construction companies. ERA Director-General Habtamu Tegegn said the cost will be covered by the government.
Marathon to assemble Hyundai electric cars in Ethiopia
Marathon Motor Engineering announced that it will assemble the first Hyundai electric cars in Ethiopia in a year.
The car dubbed ‘Hyundai Ioniq’ is a compact hatchback with a trio of powertrains. It can charge from home or work, and never stop for gas. On a single charge, the IONIQ electric can travel up to a 200 kilometer range of emissions-free driving.
Melkamu Assefa, CEO and shareholder of Marathon Motor Engineering told Capital that the car model may be changed.
“So far the model we agreed to with South Koreans is ‘Ionic’ but we may change that when we start assembling the car here.
He added that Maratahon is also considering importing a hydrogen fuel cell car after the launching of the ionic car.
Recently Hyundai Group (HMG) started selling a hydrogen fuel cell.
Hyundai Group (HMG), the massive industrial conglomerate that owns Hyundai Motor and Kia Motors, is investing £5.5billion in a plan that will boost production of hydrogen fuel cell systems to 700,000 units annually by 2030.
500,000 of those units will be hydrogen-fuelled commercial and passenger vehicles. HMG expects demand for such vehicles to reach 2 million units a year by then, and demand for hydrogen fuel cells more generally to reach 5.5 to 6.5million units a year. That’s massive.
Only recently Hyundai Motor released the Nexo – a hydrogen-powered SUV based on the group’s first dedicated fuel-cell platform. Over the next few years, HMG says it will keep developing the Nexo’s powertrain to “upgrade and diversify its fuel-cell system lineup, so it can respond to demands from various industry sectors”.
In other related news Marathon’s assembly plant which had been under construction for the last one and half years has started assembling Hyundai cars in Ethiopia.
The company which has been selling cars for the last 10 years has invested half a billion birr to construct the plant which lies on 10,000 square meters of land.
The plant, which was built by Assefa General Contractor, has the capacity to assemble 10,000 cars per year. It employs 70 people now but eventually 1,000 will work there.
Athlete Haile Gebrselassie, shareholder of the company, said that the assembling of the cars is good success of the company as well for the county.
“When we assemble in here we will cut the demand of our foreign currency in addition to creating jobs for people.’’
Marathon Motor Engineering, Plc. is a joint venture between the great long distance runner Haile Gebrselassie and other three Ethiopians. The company was founded in 2009. Currently it has five show rooms in the country.
Trade competition bench stuck for two months
The Trade Practices and Consumers ‘Protection Authority’s administrative court ceased functioning for more than two months because one judge resigned. A proclamation stipulates that director of the TCCPA should report in a timely manner to the Ministry of Trade which should then alert the Prime Minister who is responsible for appointing the judge.
The former judge, named Bruh Gemeda, went to the United Kingdom for school which was paid for by the UK government, he agreed to serve for two years after leaving the UK program. He applied for 30 days leave on September 11 so that would have meant he was expected to return on October 10.
Normally Judges are not granted annual leave and instead compensated financially for their unused leave, employees told Capital. Labor law entitles them to annual leave but the bench does not have enough judges to hear cases when one is missing.
“We sent the issue to the ministry of trade immediately when the judge resigned, and the Ministry informed the Prime Minister’s Office,” said Michael Teklu, Director of the TCCPA. “When the new Minister was appointed the issue was dropped because it wasn’t presented to her. We talked to her last week and we hope the judge will be appointed soon.” He also recalled that two letters were written to the ministry in addition asking them about the matter verbally.
Capital spoke via telephone with Fetlework Gebregziabher, Minister Trade, who said she is not familiar with the matter, as she was appointed less than a month ago.
Michael said the establishment proclamation is under an amendment. They may be able to appoint another judge after a study is done however the authority has not considered the issue yet.
