Ethiopia Resumes Process to Issue Second Telecom License
Ethiopia has resumed the process to issue a second full-service telecom nationwide license for a private operator, its sector regulator authority announced on Wednesday.
The Ethiopian Communications Authority (ECA) has today published a call for stakeholder consultation in connection with resuming the issuance process.
“This process is a continuation of the first successful transaction that ensured the entry of a private sector operator” in Ethiopia’s telecom sector, said ECA’s Director General Balcha Reba (Eng.).
Targets Competitive Market
Ethiopia awarded the first license to a consortium led by Kenya’s Safaricom in May 2021, after accepting an offer of about $850 million and a commitment to invest ten times that amount over the next decade.
The consortium is now operating under the name of Safaricom Telecom Ethiopia, alongside the incumbent state-owned Ethio Telecom.
The two may soon face another competitor in the telecom market as authorities resume the issuance process for a third license.
The sector regulator suspended the bidding process in December 2021, heeding “concerns and requests” from prospective buyers for its delay.
After nearly a year, ECA announced today it is now planning to resume the licensing process for the second new full-service nationwide telecom license, named License B.
“It shows the Government’s firm commitment to introduce competition and create a level-playing field in the sector,” Balcha said.
The general director said the scheme also aims at further opening up competition in telecoms, allowing “reliable and accessible telecom services” to the public, digital transformation, and socio-economic growth.
The Authority has invited prospective bidders to partake in the consultation and provide comments or questions on the key terms and conditions of the licensing process.
“ECA always welcomes stakeholders’ participation and engagement in this consultation process which allows potential market players to contribute to the sector they will be participating in,” said the director general said.
Interested parties and potential bidders have until Dec 16, 2022, to provide their comments on the reopening of the licensing process for License B
The post Ethiopia Resumes Process to Issue Second Telecom License appeared first on Ethiopian Monitor.
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