Ethio Telecom has announced a modest adjustment to its telecom tariffs, citing rising operating costs and challenging macroeconomic conditions, while emphasizing its continued commitment to affordability and digital inclusion.

The decision comes after six consecutive years of tariff reductions, infrastructure expansion, and service discounts that significantly widened access to telecommunications services across Ethiopia. According to a statement released by the state-owned operator, the latest adjustment is intended to ensure service continuity and sustain ongoing investments in digital infrastructure nationwide.

Six Years of Expansion and Price Reductions

Over the past six years, Ethio Telecom has aggressively pursued customer-focused pricing policies aligned with consumers’ purchasing power. These measures have helped the company grow its subscriber base to more than 86 million customers, marking one of the largest expansions in the company’s history.

During the same period, the company reported that users of Telebro, its digital super-app, have surpassed 56 million. Ethio Telecom highlighted Telebro’s role in advancing the national “Digital Ethiopia 2025” strategy by improving access to digital payments, communication services, and online platforms across both urban and rural areas.

The company attributes much of its recent success to sustained infrastructure investments, including network upgrades and service expansions that have increased coverage and reliability throughout the country.

Reasons Behind the Adjustment

Ethio Telecom stated that the tariff adjustment was unavoidable due to a combination of external pressures. Chief among these are prevailing macroeconomic conditions, rising capital expenditures, and increasing operational costs, which have collectively placed strain on the company’s financial sustainability.

Officials stressed that the adjustment is not aimed at maximizing profits but rather at safeguarding the continuity and quality of telecom services while enabling further infrastructure development.

“This move is designed to sustainably strengthen the digital infrastructure that the company has already begun rolling out nationwide,” the statement noted.

Measures to Protect Low-Income Customers

In an effort to minimize the impact on vulnerable segments of society, Ethio Telecom introduced several protective measures alongside the tariff adjustment.

Most notably, the discount on Telebir package purchases has been increased from 10 percent to 20 percent, offering additional relief to customers who rely on digital payment services.

The company also confirmed that no price increases were applied to 38 widely used service packages, ensuring that frequently accessed products remain affordable.

Furthermore, Ethio Telecom announced that essential low-cost packages—including 1 Birr, 2 Birr, 5 Birr, and one-hour packages—will continue to be offered at their current prices. These packages are widely used by low-income citizens and are considered critical to maintaining inclusive access to communication services.

Competitive Landscape and Sector Developments

The announcement comes amid heightened competition in Ethiopia’s telecom sector following market liberalization. Safaricom Ethiopia, the country’s second major telecom operator, reportedly increased the prices of its data packages by as much as 82 percent just days prior.

Industry observers note that the contrasting approaches highlight different cost structures and market strategies, while also underscoring the broader economic pressures affecting telecom operators in Ethiopia.

Balancing Sustainability and Accessibility

Ethio Telecom’s latest move reflects the complex challenge of balancing financial sustainability with public accessibility in a rapidly evolving digital economy. While tariff adjustments often draw public scrutiny, the company has sought to frame the decision within the context of long-term service reliability, infrastructure development, and inclusive digital growth.

As Ethiopia continues its push toward digital transformation, the effectiveness of such balancing acts will likely play a decisive role in shaping public trust, market competition, and the pace of technological progress across the country.