By: Tewodros Balcha
Ethiopia's
state-owned telecommunications operator Ethio telecom reported a sharp increase
in annual earnings on Thursday as mobile data and internet services overtook
traditional voice calls as its largest source of revenue, marking a historic
shift in the company's business model and highlighting the country's
accelerating digital adoption.
Presenting
Ethio telecom's 2025/26 annual business performance report at the Ethiopian
Science Museum in Addis Ababa, Chief Executive Officer Frehiwot Tamru said the
operator generated 215.82 billion birr in revenue during the fiscal year ended
June, up 33.2% from the previous year, while EBITDA rose 51.9% to 38.7 billion
birr* and operating profit increased 47.5% to 30 billion birr.
According to her,
data and internet services accounted for 31.1% of total revenue, surpassing
mobile voice services, which contributed 23.5%, a milestone that reflects a
fundamental change in customer behaviour after voice had remained the company's
leading source of income for more than a century. The company said the
crossover demonstrates growing digital adoption across Ethiopia as consumers
increasingly use mobile broadband, digital platforms and enterprise services.
"The rapid
expansion of data services enabled data revenue to surpass voice as the major
revenue stream," Frehiwot said
during the presentation, according to the company's annual performance report,
describing the development as evidence of both rising customer demand for
digital services and Ethio telecom's broader transformation from a traditional
telecommunications operator into a technology-focused digital services
provider.
The results
underscore the pace of Ethiopia's digital transformation as Africa's
second-most populous country expands broadband infrastructure, digital
financial services and cloud-based technologies under its Digital Ethiopia 2030
strategy. According to Frehiwot, Ethio telecom ended the fiscal year with 90.12
million customers, including 51.53 million active mobile data users, while
fixed broadband subscriptions surpassed one million for the first time.
Frehiwot said
the company continued to invest heavily in network expansion during the year,
deploying 603 new mobile sites, extending 4G coverage to 1,200 towns,
increasing 4G population coverage to 82.23%, and expanding commercial 5G
services to 33 cities. The investments, she said, are intended to support
rising demand for high-speed connectivity while enabling smart cities,
e-government, digital commerce and financial technology services.
Digital
financial services remained another major driver of growth. According to
Frehiwot, telebirr reached 60.6 million registered customers and processed 2.61
billion transactions worth 4.19 trillion birr during the fiscal year, while
integration with 33 banks, microfinance institutions and savings cooperatives
expanded interoperability across Ethiopia's financial system.
International
operations generated US$139.9 million in telecommunications service revenue,
contributing to total foreign currency earnings of US$188.48 million, while the
company continued advancing its regional expansion strategy through initiatives
such as the Horizon Fiber cross-border connectivity project.
Despite the
strong performance, Frehiwot said the company continues to face challenges
including inflation, foreign exchange shortages, rising energy costs,
supply-chain disruptions and infrastructure vandalism. Even so, she said Ethio
telecom's first year under its "Next Horizon: Digital & Beyond
2028" strategy demonstrates the company's transition from a traditional
telecom operator into a broader technology company built around connectivity,
cloud computing, enterprise solutions, artificial intelligence and digital
financial services.
