Telecom

Ethiopia’s telecom regulator reduces call and SMS termination rates

Ethiopia’s telecom regulator reduces call and SMS termination rates
Thursday, 25 April 2024 15:42

The call termination rate refers to the amount a telecom operator charges another operator to end a call or SMS on its network. In Ethiopia, it has been set at 0.31 birr per minute for fixed and mobile calls since 2022.

The Ethiopian Communications Authority (ECA) has established new termination rates for mobile and fixed calls, as well as SMS. The decision aims to enhance competition in the national telecom market and lower communication costs for consumers. It will come into effect on May 1.

The ECA has set termination rates at 0.23 birr (0.0041$) per minute for mobile, 0.15 birr per minute for fixed lines, and 0.05 birr per SMS. These rates will gradually decrease over the next five years to reach 0.19 birr, 0.12 birr, and 0.04 birr respectively by 2029. This regulatory decision follows a 2022 interconnection agreement between the incumbent operator Ethio Telecom and Safaricom, which was preparing to launch its commercial activities in the country. As part of this agreement, the ECA provisionally set mobile and fixed termination rates at 0.31 birr per minute. It then conducted a cost study to determine the actual termination rates.

The telecom regulator explained that the mobile termination rates (MTR) are a significant component of the overall communication cost for mobile phone subscribers. Given the impact of call termination rates on end-users, the ECA must address any market failures in the provision of mobile call termination services and ensure consumer interests are safeguarded.

On the same topic
DRC launches 2026-2030 digital plan, AI strategy in Kinshasa $1B investment to boost infrastructure, services, and digital skills Goal: become...
• Tanzania's TTCL expands its "Faiba Mlangoni Kwako" fiber internet project as the nation's subscriber base soars to 54 million, a 107% jump.• As 4G...
• The Nigerian Communications Commission (NCC) will launch a Digital Connectivity Index by end-2025 to rank all 36 states and the federal capital by...
Zambia has urged the AfDB to partner on new AI-driven polytechnics and support the University of Zambia’s Innovation Village to build future-ready...

Most Read
01

Senegal’s attempt to diversify its fuel supply by turning to Nigerian crude is bumping up against ha...

Senegal Turns on Nigerian Crude to Diversify its Fuel Supply — But Challenges Loom Ahead
02

• UAC of Nigeria acquired CHI Limited, known for Chivita juices and Hollandia dairy, from Coca-Cola ...

UAC of Nigeria Takes Control of CHI Limited, Former Coca-Cola Subsidiary
03

• Nestlé, NGOs urge against delay, propose grace period instead• EU cites technical hurdles, trading...

EU Weighs Delay to 2025 Anti-Deforestation Law Amid Industry Calls to Stay on Track
04

• AfDB chief Sidi Ould Tah met BOAD president Serge Ekué in Abidjan on Aug. 30.• Talks focused on jo...

AfDB, BOAD join forces to expand financing for West Africa projects
05

Financial professionals gathered in Dakar on September 25 for the Structured Finance Africa Forum (S...

Rating Agency Chief: West Africa Securitization Could Hit 20 Deals a Year
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.