Ethio Telecom vs. Safaricom Ethiopia: A Comprehensive Comparison of Ethiopia’s Telecom Giants
Ethiopia’s telecommunications sector has undergone significant transformation in recent years, with Ethio Telecom and Safaricom Ethiopia emerging as the two dominant players. While Ethio Telecom, the state-owned incumbent, has a long-standing presence, Safaricom Ethiopia, a subsidiary of Kenya’s Safaricom, has rapidly expanded since its entry in 2022. This article provides a detailed comparison of the two telecom giants, covering their services, network coverage, reputation, customer base, and future prospects.
Services Offered
Ethio Telecom
Ethio Telecom is a full-service provider offering a wide range of telecommunications and digital financial services. Its offerings include:
- Mobile and Fixed-Line Services: Voice, SMS, and data services for both mobile and fixed-line customers.
- Telebirr: A mobile money platform that has grown exponentially, with 51 million subscribers as of January 2025. Telebirr offers services like micro-credit (Telebirr Mela), micro-savings (Telebirr Sanduq), and international remittances.
- 4G and 5G Networks: Ethio Telecom has expanded its 4G coverage to 500 towns and is actively working on 5G pre-commercial services.
- Enterprise Solutions: Cloud services, IoT, and customized telecom solutions for businesses.
Safaricom Ethiopia
Safaricom Ethiopia, though newer, has quickly established itself as a key player with its innovative offerings:
- Mobile Services: Voice, SMS, and high-speed 4G data services. The company has prioritized data usage, with customers consuming an average of 6.6GB per month.
- M-PESA: Launched in August 2023, M-PESA has already attracted 8.3 million registered users, facilitating transactions worth 6.4 billion birr. The platform is set to introduce bank savings and lending products.
- Digital Innovation: Safaricom is focusing on digital solutions to support Ethiopia’s transition to a cashless society, including fuel and tax payment services.
Network Coverage
Ethio Telecom
Ethio Telecom boasts extensive network coverage, with 4G services available in 500 towns and plans to expand further. The company has also invested in 5G infrastructure, aiming to enhance its technological edge.
Safaricom Ethiopia
Safaricom Ethiopia has made remarkable progress in network expansion, covering 46% of the population with its 4G services as of November 2024. The company operates over 3,000 network sites, 60% of which are self-built, while the remaining 40% are shared with Ethio Telecom.
Reputation and Market Position
Ethio Telecom
As the incumbent operator, Ethio Telecom enjoys a strong reputation for reliability and extensive coverage. However, it faces criticism for slower innovation and customer service challenges. The company has been working to modernize its operations, as evidenced by its LEAD Growth Strategy, which focuses on digital transformation and customer-centric services.
Safaricom Ethiopia
Safaricom Ethiopia is perceived as a disruptor, bringing cutting-edge technology and customer-focused services. Its reputation is bolstered by the success of M-PESA, which has revolutionized mobile money in Kenya and is now gaining traction in Ethiopia. The company’s aggressive expansion and commitment to digital innovation have earned it a positive reputation among urban and youth markets.
Customer Base
Ethio Telecom
Ethio Telecom dominates the market with 80 million customers as of January 2025. Its mobile money platform, Telebirr, has 51 million subscribers, making it a leader in digital financial services.
Safaricom Ethiopia
Safaricom Ethiopia has rapidly grown its customer base to 6.1 million active users as of November 2024. The company aims to surpass 10 million customers within a year, driven by its focus on data services and M-PESA.
Comparison: Ethio Telecom vs. Safaricom Ethiopia
| Aspect | Ethio Telecom | Safaricom Ethiopia |
|---|---|---|
| Customer Base | 80 million (Jan 2025) | 6.1 million (Nov 2024) |
| Mobile Money | Telebirr (51 million subscribers) | M-PESA (8.3 million registered users) |
| Network Coverage | 4G in 500 towns, 5G in progress | 4G covers 46% of the population |
| Reputation | Reliable but slower to innovate | Innovative and customer-focused |
| Future Focus | Expanding 5G and digital services | Scaling M-PESA and digital payments |
Future Prospects
Both companies are poised for growth, but their strategies differ. Ethio Telecom is focusing on expanding its 5G network and enhancing Telebirr’s capabilities, while Safaricom Ethiopia is prioritizing M-PESA and digital innovation. The competition between the two is expected to drive further advancements in Ethiopia’s telecom sector, benefiting consumers with better services and lower prices.
Conclusion
Ethio Telecom and Safaricom Ethiopia represent two distinct approaches to telecommunications in Ethiopia. While Ethio Telecom leverages its extensive infrastructure and market dominance, Safaricom Ethiopia brings innovation and a customer-first mindset. As both companies continue to expand and innovate, Ethiopia’s telecom sector is set to become a model for digital transformation in Africa.
For more insights into Ethiopia’s telecom landscape, stay tuned to our website for regular updates and analysis.
Ethio telecom website: https://ethiotelecom.et
