III. TELECOMMUNICATIONS

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1 III. TELECOMMUNICATIONS Ethiopian Telecommunication Corporation (ETC), the state-owned telecom company provides national and international telecommunications services using various media of communication such as Satellite, Microwave Digital Radio Multi-access System (DRMAS), VSAT, UHF, VHF, Long Line and HF Radio. Currently, ETC is serving the public with its 919 public stations and exchanges, which showed 1.7 percent annual growth over the previous year. Consequently, the total number of fixed telephone subscription (residential, business, government and others) has increased from 725,6 in 25/6 to 88,88 in 26/7 revealing 21. percent annual increase. The number of waiting list for fixed telephone subscribers, however, has decreased by 75.8 percent from 56,53 in 25/6 to 13,579 in the review year (Table 3.1). At the same time, the number of mobile subscribers reached 1,28,98 demonstrating 39. percent growth over the previous year level of 866,7 subscribers. In a related development, the number of Internet subscription went up from 25,72 in 25/6 to 31, in the review year registering 22.1 percent increase. Reflecting the increased performance in fixed telephone, mobile and Internet subscription, the country's telecommunication penetration rate (Tele-density excluding mobile or the number of telephone subscribers per 1 inhabitants) has increased from.98 in 25/6 to 1.16 in 26/7. The penetration rate was higher (2.73 per 1 inhabitants) when mobile subscriptions are included. With respect to telephone traffic, the registered domestic traffic picked up by 9.6 percent from 2,75.56 million pulses in 25/6 to 2,71.31 million pulses in 26/7. Meanwhile, the out-going international telephone traffic calls have declined from 11.8 million in 25/6 to 5.73 million in 26/7. In the Country s five year development, plan, (PASDEP), it is planned to increase

2 the number of fixed line subscribers from 83, in 25/6 to 3.2 million by the end of 29/1. The number of Mobile subscribers and internet users, is also expected to pick up to a respective 6.76 million and 193,1 by the end of the plan period from 1.65 million and 8,97 in 25/6.

3 Table 3.1: SUMMARY OF BASIC TELECOM STATISTICS [ E.F.Y (199/91-25/26 G.C)] Averag e No. ITEMS 1992/93) 1993/9) (199/ /96) 1996/97) 1997/98) (1998/99) (1999/) (2/1) (21/2) (22/3) (23/ ) 1 PUBLIC STATIONS & EXCHANGES( ) (2/ 5) (25/6) (26/7) Automatic Exchanges Automatic Stations Manual Exchanges(Stations) (9.5) (32.) 1. Manual Stations with Semi-Auto (31.3) facility 1.5 Pay Stations & R.R.C (6.9) 1.6 Total Exchange Capacity ,22 8 1,22,399 1,123, Automatic Exchange capacity , ,77 73,16 857,37 1,16,111 1,12, Manual Exchange capacity ,78 2,116 19,388 1,85 6,288 3,21 (1.1) (9.) 1.9 % Digital by Capacity % Digital by Total Connected Lines / DEL / 2 SUBSCRIPTION Telephone Subscriber Lines , , ,6 88, Waiting list for telephone ,95 16,62 156,96 58,755 56,53 13,579 (15.) (75.8) DEL's ,688 13,186 9, 8 62, ,85 89, PBX's Coin Boxes ,61 1,759 1,813 2,585,29, Number of subscriber's facsimile Number of facsimile machines Number of Internet Subscribers ,71 25,72 31, Mobile Telephone Subsription ,53 1,63 866,7 1,28,

4 Table 3.1: SUMMARY OF BASIC TELECOM STATISTICS [ E.F.Y (199/91-25/26 G.C)] Average No. ITEMS 1992/93) 1993/9) (199/ /96) 1996/97) 1997/98) (1998/99) (1999/) (2/1) (21/2) (22/3) (23/ ) (2/5 ) (25/6) (26/7) Percentage of lines 2.1 residential/business 62./ / /18 62/19 62/2 61/2 62/19 63/2 67/19 7/ / /16.6 7/ / / Number of Digital Data Circuits Number of Digital Data Customers Number of Rural Kebeles ,837 7,389 1, TELEPHONE TRAFFIC (millions) 3.1 Metered -Pulses , , , , Metered -CDR * Interurban calls (via operator) International calls (OG) (5.1) 3.5 International minutes (OG) (.) 3.6 International calls (IC) International minutes (IC) Mobile Telephone and Internet Traffic.1 Mobile -Local (million mins.) N.A. N.A. N.A Mobile -International (million mins.) N.A. N.A. N.A Internet Traffic ( ' hours ) , ,285.7 N.A. N.A. N.A TELEGRAPH MESSAGES (Thousands) 5.1 National (8.1) 5.2 International (OG) (27.3) 6 INTERNATIONAL CIRCUITS 6.1 Satellite Telephone Circuits ,816 1,79 1, Microwave Telephone Circuits Submarine Cable ,

5 Table 3.1: SUMMARY OF BASIC TELECOM STATISTICS [ E.F.Y (199/91-25/26 G.C)] Average No. ITEMS 1992/93) 1993/9) (199/ /96) 1996/97) 1997/98) (1998/99) (1999/) (2/1) (21/2) (22/3) (23/ (2/5 (25/6) (26/7) ) ) 7 PERSONNEL 8 FINANCE Male ,763 7,76 8, Female ,15 3,7 3, Total ,778 11,23 11, Income (Millions Birr) , ,155. N.A Expense (Millions Birr) ,99.6 N.A Gross Profit (Millions Birr) N.A ASSETS (Millions Birr) 8.5 Fixed Gross (Millions Birr) ,86.2 2,83.8 N.A Depreciation (Millions Birr) , ,3.73 N.A Net Asset (Millions Birr) ,59.8 1,13.7 N.A Population /in millions/ Teledensity Teledensity (Fixed + Mobile)

6 National Bank of Ethiopia Report 26/7 Note: - Average annual growth rate is computed for the years 1992/93-26/7 E.F.Y. *The traffic of CDR-1 and AXE-1 exchanges measured in pulses whereas the traffic of the remaining exchanges measures in CDR. -Figures in bracket in the annual growth column show declines. 6

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