This is our company’s next three-year strategic plan (from 2024/25 to 2027/28 and the 2018 E. annual business plan), which was publicly announced at the Science Museum.
As we conclude the transformative and remarkably successful LEAD Growth Strategy (2022–2025), we reflect on a journey defined by remarkable transformation, resilience, and market leadership. Implemented in a highly dynamic and competitive environment, the strategy solidified our position as Ethiopia’s digital powerhouse and laid a strong foundation for the future.
Our transformation aligns with National Digital Ethiopia 2025 and other national development plans. Our company’s reform journey, through the LEAD strategy, has achieved impressive results over the past three years. These achievements, beyond confirming the crucial role of telecom and digital services in accelerating inclusive national development, demonstrate our firm commitment to making Digital Ethiopia a reality.
Building on the experience gained from its LEAD Growth Strategy and based on national survey studies, our company, Ethio telecom, has launched the ‘NEXT HORIZON: Digital & Beyond 2028 Strategy’ a strategy that goes beyond continuity and re-envisions its role in shaping Ethiopia’s digital future and expanding inclusive growth across Africa.
The Next Horizon strategy seeks to transform Ethio telecom into a globally competitive, regionally diversified, and digitally empowered enterprise. It is a call to push beyond connectivity into platforms, ecosystems, and solutions that will catalyze national development agendas while unlocking new opportunities in the regional and global digital economy and positioning our company among the technology and innovation leaders in Africa and beyond.
Our new Next Horizon strategy covers a three-year period from July 2025 to June 2028. It has been carefully designed with a dual approach, deliberate and adaptive, to ensure both discipline and flexibility. At the heart of this approach lies the strength of our leadership, the commitment of our employees, the empowerment of our broader human capital, and a human-centric philosophy that values people as the ultimate drivers of innovation and transformation, all serving as catalysts for execution and sustainable impact.
Ethio telecom’s strategy is anchored in the Balanced Scorecard framework, providing a holistic approach across four perspectives:
- Finance
- Customer
- Internal Business Process
- Learning and Growth
This integrated, human-centric approach aligns operational excellence, customer focus, financial sustainability, and people development to deliver on Ethio telecom’s long-term vision.
The strategy is centered on human-centric and problem-solving activities that create vast employment opportunities and generate lasting social and economic value. Furthermore, we are committed to ensuring inclusive and equitable access to communication and digital services, and we make environmental sustainability the foundation of all our work.
Ethio telecom stands at a pivotal moment in its transformation journey, uniquely positioned to harness its extensive infrastructure, large customer base, and strong national brand to drive Ethiopia’s digital and economic aspirations. With over 83 million subscribers and 131 years of industry presence, the company has firmly established itself as a trusted digital partner for individuals, enterprises, and government institutions.
Strengths lie in the company’s nationwide network, large and growing customer base, strong customer acquisition, and diverse service portfolio that extends beyond connectivity into fintech, cloud, data centers, cybersecurity, and smart city initiatives. Visionary and passionate leadership, combined with strategic partnerships, a cost optimization culture, and robust human capital development programs further strengthen its market leadership. In addition, the company’s trusted relationship with government and its active involvement in national digital transformation projects ensure sustained alignment with Ethiopia’s long-term priorities.
Based on telecom industry trends, data and internet services continue to be the central drivers of growth. However, countries in sub-Saharan Africa have some of the lowest connectivity rates in the world, with less than 29% connectivity, which is linked to significant gaps in usage and network coverage.
Ethio telecom has made remarkable progress by expanding 4G coverage to 70.8%, giving it a strong position in the regional market. To maintain this growth, sustained infrastructure development, targeted digital inclusion efforts, and strengthening local content offerings like video streaming and online gaming will be crucial for increasing adoption and closing the digital divide.
Anchored in a refreshed Vision, Mission, and Values, the new Next Horizon strategy embraces a future defined by innovation, inclusivity, and the ability to withstand challenges and shape future opportunities.
Vision, Mission & Values
At the core of this strategic shift lies our company’s refined identity. These crucial points, which define our fundamental essence, are described as follows:
Vision
“To be the Leading Catalyst for a Thriving, Digitally Empowered Ethiopia and Beyond.”
Mission
“Simplifying lives and accelerating Ethiopia’s digital transformation and beyond through delivering reliable communications, innovative digital solutions, and seamless financial services that empower communities, businesses, and nations far beyond connectivity.”
Values
“Human-centric, Togetherness and Collaboration, Integrity and Trust, Innovation, Excellence, socially responsible and impact driven.”
Strategic Themes
The Next Horizon Strategy is anchored on six strategic themes, each representing a core pillar of our transformation journey:
- Digital-First, Customer-Centric Experience Excellence– Delivering highly personalized, accessible, and seamless experiences that anticipate and exceed the evolving needs of individuals, businesses, and communities.
- Technology Innovation & Digital Solutions Leadership– Accelerating innovation in cloud, AI, IoT, 5G, and integrated platform ecosystems to unlock new growth opportunities and deliver future-ready digital solutions.
- AI-Powered & Digitally-Driven Operational Excellence– Leveraging automation, advanced analytics, and intelligent systems to drive efficiency, optimize resources, and enable faster, smarter decision-making.
- Innovative Business Diversification & Sustainable Value Creation– Expanding into new industries, geographies, and high-potential market segments to ensure resilient, inclusive, and long-term business growth.
- Empowered, Agile & Future-Ready Human Capital– Equipping our people with advanced digital skills, innovative tools, and an adaptive culture to excel in an ever-evolving business and technology landscape.
- Trusted Brand, Purposeful Impact & Sustainable Future – Strengthening public trust, fostering deep stakeholder partnerships, and committing to environmental stewardship and positive societal transformation.
Strategic Goals
- Elevate Customer Satisfaction and Experience
- Drive Business Diversification, New Growth Engines and Regional Expansion
- Drive Operational Excellence & Achieve Cost Optimization
- Achieve and Sustain a High EBITDA Margin
- Enhance Employee Satisfaction and Drive an Agile, High-performance Team
- Market Leadership
Strategic Objectives
Ethio telecom’s 2025/26–2027/28 strategy sets out nineteen strategic objectives that collectively aim to reinforce the company’s role as a catalyst for Ethiopia’s digital transformation. The priorities center on enhancing customer experience, modernizing networks, and expanding digital services. This includes delivering seamless and personalized digital journeys, improving service quality, expanding 4G/5G and fiber networks, and ensuring customer trust through robust data privacy and security practices.
By focusing on these areas, the company seeks to strengthen loyalty, expand its active customer base, and achieve a distinct competitive advantage.
The strategy also emphasizes technology leadership, diversification, and operational excellence. Ethio telecom plans to go beyond connectivity by scaling its fintech platform telebirr, advancing e-commerce and digital lifestyle services, and offering tailored enterprise solutions. Simultaneously, AI-driven automation, digital workflows, lean supply chains, and advanced analytics will enhance productivity, reduce costs, and improve efficiency. These efforts are complemented by disciplined financial management, smart CAPEX allocation, and asset monetization to ensure sustainable growth and profitability.
Finally, the strategy underscores the importance of human capital, partnerships, and sustainability. Building a digitally skilled and future-ready workforce, fostering a values-driven organizational culture, and strengthening employee engagement are central enablers of transformation. The company also commits to ESG practices and active community engagement to build long-term trust. By strengthening ecosystem partnerships, regulatory engagement, and compliance, Ethio telecom is positioned to secure resilience, diversify revenue streams, and deliver lasting value to its customers, shareholders, and the broader Ethiopian society
Strategic Priorities
As part of its “Next Horizon: Digital & Beyond” strategy, Ethio telecom has identified numerous Strategic Priorities. We have grouped them into four main categories:
- Digital Transformation, Inclusion & Empowerment
- Customer Experience Excellence
- Business Diversification, Regional Expansion & Global Play
- Empowered, Future-Ready Talent & Culture
The four categories are further classified into the following strategic priorities:
- Network & Systems Leadership
- Future-Ready Infrastructure
- Operational Excellence, Smart Investment & Resource Optimization (CAPEX & OPEX)
- Energy Efficiency & Green Infrastructure
- Platform Economy & Innovative Fintech Solutions
- Enterprise & Sector Solutions Leadership
- Financial Resilience & Sustainable Financing
- R&D, Innovation & Technology Commercialization
- Technology Innovation, Big Data, AI & Intelligent Operations
- Innovative Products, Services & Device Penetration
- Device Manufacturing & Tech Ecosystem Development
- Market Leadership & Brand Trust
- Regulatory Compliance & Stakeholder Engagement
- Cybersecurity, Data Privacy & Risk Management
- Strategic Partnerships & Ecosystem Collaboration
- Sustainability, ESG & Responsible Growth
These strategic priorities will guide our performance, investment decisions, resource mobilization, and performance monitoring over the next three years.
Strategic Initiatives
Ethio telecom’s strategic initiatives for 2024/25–2027/28 are anchored in technology innovation and digital solutions leadership. The plan prioritizes expanding nationwide connectivity and beyond by achieving 4G LTE Advanced coverage of 85%, deploying 4G in 550 new towns, and developing 1,228 new mobile sites, including 322 rural sites, to bridge the digital gap. These efforts are complemented by boosting subscriber capacity and deploying massive MIMO and indoor solutions to further enhance service quality.
Complementary to this, the company is modernizing its core network, refarming spectrum, and expanding rural connectivity with macro site builds. A large-scale fiber rollout, including ODN deployment, fiber-to-tower links, and a complete copper switch-off strengthens fixed and mobile broadband services, supported by metro and backbone network enhancements with robust ring protection and GIS-enabled management.
Parallel to network expansion, the company is investing heavily in digital infrastructure and next-generation platforms. This includes modular, edge, and hyperscale data centers, cloud capacity expansion with advanced compute and storage capabilities, and the adoption of AI-driven technologies such as AI-SON and digital twin platforms to optimize performance. These investments will ensure scalable, secure, and energy-efficient digital ecosystems capable of supporting Ethiopia’s growing data, enterprise, and national project demands.
A cornerstone of the strategy is sustainability and company empowerment. Ethio telecom is driving a green energy transition by converting 500–1,000 sites annually to solar and grid solutions, reducing fuel consumption by over 16% and cutting CO₂ emissions. At the same time, initiatives emphasize customer-centric digital experiences, future-ready human capital development, and building a trusted brand with sustainable national impact. Collectively, these efforts position Ethio telecom to accelerate digital inclusion, strengthen competitiveness, and fulfill its role as a key enabler of Ethiopia’s digital transformation.
Projections and Business Targets for the 2025/26 Fiscal Year
Mobile Network Expansion and Upgrade
Ethio telecom has extensive plans to expand and upgrade its mobile network, which includes increasing 4G service population coverage to 85%, encompassing 550 additional towns. 5G service is planned to be deployed in 10 more cities, increasing the
number of 5G sites from the current 315 to 490. A total of 1,228 new mobile sites are planned for construction, of which 322 will be in rural areas. This will add 7.6 million new mobile capacity, bringing the total mobile network capacity to 112.4 million.
Fiber, Broadband Network, and Power Infrastructure
In the fiber network construction sector, Ethio telecom plans to increase its Optical Distribution Network (ODN) capacity by 900K, of which 115K is new construction and 785K is by replacing copper lines with fiber. Additionally, 320,000 customers will be migrated from copper to fiber. Furthermore, it is planned to connect 1112 mobile sites in major cities with fiber, perform 2000 km of additional metro fiber rollout, and install 356 new FBB (OLT) devices.
Fiber to the Tower: For Addis Ababa, the current coverage is 92%; an additional 6% will be added to reach 98%. For major regional cities, the current coverage is 46%; an additional 44% will be added to reach 90%. Massive MIMO: The current sites are 304; an additional 525 sites will be upgraded.
Digital Infrastructure and Other Services
Significant investment is also planned in ICT infrastructure, with the data center capacity to be increased by 192 racks, 1.536MW of IT load, and 8,064 servers. Additionally, 1100 km of Backbone fiber will be deployed, the power source for 500 sites will be converted to green energy, the International Gateway (IGW) capacity will be increased by 350 Gbps, Cache capacity by 600 Gbps, Cloud capacity by 840 vCPU, 4.5PB Object Storage and 6PB Enterprise Storage will be upgraded. It is also planned to provide an additional 2.5 million customer devices.
Customer Base Growth Target
Ethio telecom plans to increase its customer base by 6% to 88 million in the 2018 EFY. This includes a 6% increase in mobile voice to 85.4 million, a 13.3% increase in mobile data and internet to 52.8 million, and a 23% increase in fixed broadband customers to 1 million, bringing the total telecom penetration rate to 77.2%.
Mobile broadband capacity will be built to serve 1.8 million users, especially by expanding 4G coverage from 71% to 85% and rolling out 5G service. It is planned to be enhanced through long-term payment device provision, package discounts, and rural-focused campaigns, which will enable 61% of mobile customers to become broadband users. The average 4G internet speed (throughput) is planned to reach 8.78mb/s.
In fixed broadband service, the GPON capacity will be increased to 1.9 million, and it’s planned to switch 320,000 lines from copper to fiber. Residential subscriptions are planned to increase by 128,000 and business enterprises by 32,000.
In addition to planning to increase the number of telebirr users to 62.5 million, special focus will be given to increasing the active customer ratio. The 30-day active customer ratio is planned to increase from 14.5% to 20.5%, and the 90-day ratio from 22.6% to 32%.
Revenue Target
Ethio telecom plans to achieve a total revenue of 235.8 billion birr in the 2018 fiscal year, a 45.6% increase compared to the previous fiscal year. While revenue from the main telecom services will account for 133 billion birr, about 40% of the revenue is planned to be generated from business activities beyond traditional telecom. The revenue stream breakdown is as follows: Data and Internet Service (23.8%), Voice Service (23.2%), International Services (8.9%), Customer Device Sales (11.5%), Enterprise Services
(10.2%), Value Added Services (VAS) (7.6%), Telebirr (3.6%), Infrastructure Sharing (2.2%), and other services (9%).
Telebirr Target
The number of telebirr users is planned to increase by 14% to 62.5 million, the transaction value to 4.43 trillion birr (an 86% increase), and the transaction volume to 1.94 billion (an 83% increase). The revenue from telebirr is planned to increase to 8.5 billion birr (a 93.9% increase), and the number of merchant partners to 444.6 thousand (a 43% increase), and agents to 432.9 thousand (a 35% increase), to strengthen the telebirr ecosystem.
Products and Services
During the budget year, the company plans to introduce a total of 327 products and services and more than 3.5 million customer devices to the market. This is projected to increase total revenue to 235.8 billion ETB, a 45.6% growth from the previous fiscal year. Additionally, foreign currency revenue from international services such as infrastructure sharing, money transfers, and call transit is expected to grow by 6%, reaching $225.9 million USD.
Financial Target
Beyond increasing revenue and diversifying income sources, the company plans to implement a robust cost-saving system to achieve an EBITDA margin of 47.7%. The projected pre-tax profit is 76 billion ETB, marking a 260% growth from the previous year,
with a planned profit margin of 22.6%. The company also plans to contribute 70.9 billion ETB in direct and indirect taxes and 35.4 billion ETB in dividends to the government during the fiscal year.
Overall, through its telecom and digital infrastructure expansion investments, the company’s total assets are projected to grow from 332 billion ETB to 501 billion ETB in the budget year.
Key Performance Indicators of the Next Horizon Three-Year Strategy
By the end of the three-year “Next Horizon: Digital & Beyond” strategy, the total number of telecom service users is projected to reach 100 million. The number of mobile voice and broadband users is expected to grow significantly, expanding digital access. Specifically, mobile broadband users are targeted to reach 67.3 million, and fixed broadband customers are expected to reach 1.6 million.
By the end of the strategy period, the number of telebirr users is planned to increase by 36.8% to 75 million. The transaction volume is projected to grow to 21.3 trillion ETB (+334%), and the number of transactions to 10.4 billion (+439%). Revenue from telebirr is planned to increase to 49.1 billion ETB (+568%). The strategy also aims to strengthen the telebirr ecosystem by increasing the number of merchants to 960.6 thousand (+209%) and agents to 840 thousand (+162%).
Overall, the company aims to generate 842.3 billion ETB in revenue over the three years, representing a 154% growth from the previous strategy period. This revenue increase will be driven by core telecom services, as well as new sources like FinTech, device sales, enterprise solutions, and other services. Foreign currency earnings are projected to increase to $976 million USD. Total company assets are projected to reach 851 billion birr, funded by investments in telecom and digital infrastructure expansion during the strategy period. In line with its commitment to contributing to the national economy, the company plans to disburse a total of 253 billion ETB in direct and indirect taxes and 111.3 billion ETB in dividends to the government over the three years.
Strategic Assumptions
Ethio telecom’s strategic assumptions reflect a dynamic operating environment shaped by liberalization, regulatory shifts, economic pressures, and evolving market dynamics. The potential entry of a third operator, more ISPs, satellite companies, and additional mobile money players will intensify competition, erode market share, and pressure pricing. Regulatory enforcement around SMP, MTR, QoS, spectrum, and numbering will increase compliance costs and operational complexity, demanding stronger advocacy, efficient traffic management, robust monitoring, and proactive engagement with regulators. At the same time, macroeconomic volatility, including inflation, forex constraints, and devaluation, threatens affordability and financial stability, while financing needs remain high due to the capital-intensive nature of the sector.
Beyond the market and policy sphere, geopolitical and supply chain disruptions, regional integration opportunities, and social-political stability will heavily influence execution. Ethiopia’s positioning in the Horn of Africa exposes it to global trade tensions and infrastructure risks, requiring resilient sourcing and contingency planning. However, cross-border connectivity and digital collaboration create pathways for growth through roaming, infrastructure sharing, and regional digital solutions. Finally, human capital and workforce readiness emerge as pivotal, with growing demand for advanced digital skills such as AI, cybersecurity, and data science. Ethio telecom must therefore double down on talent attraction, reskilling, and retention strategies to maintain competitiveness and lead Ethiopia’s digital transformation journey.
Risk Assessment
Ethio telecom operates in a complex and multi-dimensional risk environment, spanning strategic, operational, financial, regulatory, and technological domains. These risks have the potential to disrupt business continuity, undermine competitiveness, and affect long-term resilience.
Key external risks include macroeconomic pressures such as inflation, foreign currency shortages, and credit exposure, alongside regulatory constraints, market liberalization, and intensifying competition. Internally, operational and technological risks, including infrastructure outages, power supply instability, cybersecurity threats, and supply chain disruptions challenges. Human capital and, such as talent shortages, rising customer expectations, and brand reputation vulnerabilities, further compound the landscape.
Addressing these requires proactive mitigation strategies centered on revenue diversification, infrastructure modernization, stronger governance, and a human-centric approach to talent and customer engagement. Ultimately, success will depend on disciplined execution, active regulatory engagement, and future-ready workforce capabilities to ensure resilience and sustain competitive advantage in an increasingly volatile environment.
Cross- Sectoral Plans
Regarding women: Identifying and providing practical solutions for challenges women face in the workplace, implementing Gender mainstreaming within the institution, facilitating work-life balance and capacity-building training for female employees, as well as organizing panel discussions and promoting health, sports, and other social engagements.
Environmental Protection and Green Development
Focuses on reducing carbon emissions, using sustainable power sources (Green Energy), providing charging services for electric vehicles, and responsibly managing network materials. Additionally, we will develop a green work culture by encouraging employee and community participation. Our technology will also enable us to play a crucial role in building modern and eco-friendly cities (Smart Cities).
Charitable Activities
We will strengthen the capacity of charitable organizations by supporting them financially and technologically. We will also enhance our community participation by coordinating our employees in blood donations and fundraising for institutions like the Ethiopian Red Cross. Furthermore, we will work with relevant stakeholders on the health of our employees and the community, focusing on HIV prevention and support.
As this strategy is a crucial roadmap for shaping Ethiopia’s digital destiny and expanding sustainable and inclusive growth in Africa, our company’s management and employees are committed and ready for its success. Similarly, we call upon our customers, regulatory bodies, technology suppliers, business partners, the media, and stakeholders for their collaboration as we officially launch this new strategy era with a new beginning, new hope, and new perspective.
26th August 2025
Ethio telecom
