Ethio Telecom CEO plots digital path for rural communities

Light Reading was speaking to Tamiru at this year’s Mobile World Congress, shortly after she signed a contract with longstanding partner Huawei to roll out 500 base stations in rural areas. Using Huawei’s solar and wireless-backhaul RuralStar solution, explained Tamiru, Ethio Telecom will be able to spread the reach of its existing wide range of digital services, including mobile money, to Ethiopia’s less-populated and more difficult-to-reach places

“Prior to the contract we completed a proof-of-concept [for RuralStar] and saw that it could be deployed in less than seven days,” said Tamiru. “We’ve already identified the rural areas where we want to roll out the solution.” Aside from easy and fast deployment, RuralStar promises considerable opex benefits. According to Huawei, a RuralStar node consumes no more energy than five lightbulbs.

Closing coverage and usage gaps

Ethio Telecom has met its population coverage target set by the government. With the help of 2G, the operator’s signals reach over 99% of people. In urban areas, 4G and increasingly 5G is available. Ethio Telecom has 75 million mobile customers in a country of 120 million people.

It is the coverage gap, however – the percentage of Ethiopia’s population not within reach of a mobile broadband network and therefore digital services – which Tamiru is laser-focused on closing and why she is deepening ties with Huawei.

“At 5%, Ethiopia’s coverage gap is much lower than Africa’s average of 15%, but we need to reduce it further even if it’s not profitable to do so,” she said. “As we move forward as the second-largest operator in Africa, we want to discharge our social responsibility.”

For Tamiru, financially empowering Ethiopia’s rural communities by enabling access to the operator’s hugely popular mobile money service telebirr – developed in collaboration with Huawei – is a must. Following its launch in May 2021, the range of telebirr services has rapidly expanded, attracting 42 million subscribers in the process. The telebirr ‘SuperApp’, for example, now has 31 apps covering the likes of e-commerce, financial transactions, merchant and utility payments, and international remittances.

Since August 2022, following the granting of a license from the National Bank of Ethiopia, telebirr has been offering micro credit and micro saving services.  There are now more than four million people using telebrirr banking. “It’s sometimes difficult to access traditional traditional bank services if much travel involved,” said Tamiru.  “This is the power of digital solutions.”

Promoting smartphone adoption, to reduce the usage gap, is another priority for Tamiru. Working with various partners, including the World Bank, Ethio Telecom is offering subsidies and micro credit – delivered via telebirr – to assist with smartphone purchases and buy airtime.

“As a country we are aspiring to digitally transform each industry sector, including smart agriculture and smart education,” said Tamiru. “We don’t want people living in rural areas to miss out on the digital economy.”