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Ethiopia’s state-owned telco explores deal with fiber provider Somcable to access global markets

Ethiopia’s state-owned telco explores deal with fiber provider Somcable to access global markets
Thursday, 29 January 2026 17:30
  • Ethio Telecom is seeking to expand digital services abroad through talks with Somaliland’s Somcable.
  • The partnership focuses on cross-border connectivity and digital service development.
  • The operator reported 87.1 million subscribers and about $850 million in revenue in H2 2025.

Ethiopia’s incumbent telecom operator, Ethio Telecom, announced on January 28 that it had held a meeting with Somcable, a major fiber optic provider based in Somaliland. The talks focused on cooperation to support Ethio Telecom’s efforts to expand digital services and reach global markets. The meeting brought together Ethio Telecom chief executive Frehiwot Tamru, Somcable chairman Mohamed Said Guedi, and chief executive Mohammed Ibrahim Ahmed. Discussions covered cross-border collaboration in digital and telecommunications services.

Somcable has experience in designing and maintaining high-capacity submarine fiber-optic networks. It is involved in the PEACE cable system, which connects East Africa with Europe and Asia, and has invested in broadband expansion, including fibre-to-the-home projects in Somaliland’s major cities. The partnership is expected to strengthen regional connectivity in the Horn of Africa. Both companies agreed to reinforce their existing international internet capacity lease agreement and explore further areas of cooperation.

In Cameroon, Ethio Telecom signed a three-year Master Service Agreement (MSA) with CAMTEL in December 2025. The deal is intended to support several national priorities, including the launch of Blue Money, CAMTEL’s mobile-money service expected in 2026, the digitisation of public services through a government cloud, and the modernization of telecom networks with 4G and 5G deployment. Ethio Telecom also signed an agreement with Saudi Telecom (STC) in August 2025 to support business expansion and diversification.

According to its FY2025/26 First Half-Year Business Performance Report, covering July to December 2025, Ethio Telecom serves 87.1 million subscribers and generated 85.02 billion ETB (about $850 million) in revenue. The company reported $3.16 million from infrastructure sharing and more than $16.02 million through Telebirr’s international remittance service. Telebirr, its mobile money platform, has expanded to 58.61 million users.

The company’s “Next Horizon: Digital & Beyond 2028” strategy outlines plans to move beyond connectivity into platforms and digital services, to strengthen its position in regional and global markets.

Hikmatu Bilali

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