Safaricom and Vodacom to bid for the Ethiopia Telecom license by combine forces together. The bid for the licence will open this month and will cost over $1 billion. In Ethiopia, telecommunication is completely monopolized and provided by Ethio Telecom formerly known as Ethiopia Telecommunication. The monopoly in the sector has not done any good as over 108 million Ethiopians are unable to use the services. Lots of issues has stern from the monopoly which are inadequate phone line, network congestion, poor network coverage etc. These have prompted the urgent move to open the telecommunication sector to other companies to bid for licences so as to combat these challenges.
Michael Joseph the acting CEO of Safaricom said he has decided to combine force with Vodacom in other to acquire the license because of its expensive nature.
Big telecommunication companies hearing the news is already indicating interest like MTN Group and Orange. These Telecommunication companies coming to Ethiopia will open the Ethio Telecommunication to privatization and competition leading to growth in the sector.