Introduction/over view of the company

Telecommunications service was introduced in Ethiopia by Emperor Menelik II in 1894 when

the construction of the telephone line from Harar to the capital city, Addis Ababa, was
commenced. Then the interurban network was continued to expand satisfactorily in all other
directions from the capital. Many important centers in the Empire were interconnected by lines,
thus facilitating long distance communication with the assistants or operators at intermediate
stations frequently acting as verbal human repeaters between the distant calling parties.
Telecommunications sector in Ethiopia (1894-1942)
In this particular period, the telecom telecom has been renamed and restructured through
different stages.
First, the management of the service was under the Imperial Court of Menelik II in the name of
the ―Central Administration of Telephone and Telegraph System of Ethiopia‖ from 1890 up to
1907. Mr. Stevenin, a French citizen, was appointed as the General Manager of the service.
The service was renamed as ―The Central Office Of Post, Telegraph AND Telephone (Ptt)
System Of Ethiopia‖ since 1907-1909. It was administered by Emperor Menilik II‘s Advisor, Mr.
Al Fred Ilg, a Swiss man.
Then the service was renamed as ―Ministry Of Post, Telegraph and Telephone (Pt And T)‖ in
1910. First, it was administered by Mr. Leo Shafno, a French citizen and then replaced by the
first Ethiopian administrators Lij Gizaw Bezabih, Lij Beyene Yimer and their successors
consecutively

 1942-1952 (Post War Restoration)

After the independence from the Italian occupation, the re-established Ministry of PT and T took
over the running of Telephone, Telegraph and Radio communications. It, therefore, rehabilitated
the network of the whole country.
 Under the Imperial Regime
The Imperial Board of Telecommunications of Ethiopia (IBTE) was established by the
proclamation No. 131 on October 15, 1952
The main purpose of the Board, as stated in its establishment charter of article 5 was ―to
rehabilitate, extend, repair and maintain the telecommunication facilities of Ethiopia and to
engage in the business of telecommunication for profit.‖
In 1960 IBTE looked after the operational matters of central Ethiopia, a Regional office was
created at Addis Ababa. And at the same time, Radio Division was created separated from the
receding Technical Division bringing the number of Division Offices to seven during the same
period.
 Under The Dergue Regime (1974-1991)
Under the Dergue regime, the Ethiopian telecommunications was renamed as follows:
In October 1975, the organization was renamed as ―The Provisional Military Government Of
Socialist Ethiopia Telecommunication Services‖
It was renamed again as ―Ethiopian Telecommunications Authority (ETA) on January 1981. It
retained its name as ETA up to November 1996.
At this period, the telecommunication services had made a major change of technology ranging
from Automatic to Digital technology.
 Under the Federal Democratic Republic of Ethiopia
The telecommunications sector was restructured and two separate independent entities namely
the Ethiopian Telecommunications Authority (ETA) and the Ethiopian.
Telecommunications Corporation (ETC) were established by Proclamation No. 49/1996 on
November 1996.
 Establishment of Ethio Telecom
As a continuation of the 2005/06-2009/10 five-year plan and after concentrating its efforts on
education, health and agriculture, the Ethiopian government has decided to focus on the
improvement of telecommunication services, considering them as a key lever in the development
of Ethiopia, ethio telecom is born, on Monday 29th November 2010, from this ambition of
supporting the steady growth of our country, within the Growth Transformation Plan (GTP),
with ambitious objectives.

Ethiopia’s state owned telecommunications company, Ethio Telecom is now the continent’s
largest mobile operator.

This is according to IT Web’s report that with over 57 million mobile subscribers as at
November 2017, Ethio Telecom had beat MTN Nigeria to become Africa’s largest in terms of its
mobile customer base.

“Ethio Telecom of Ethiopia is now the largest mobile operator in Africa in terms of
subscriptions, with 57.34 million mobile subscriptions at end-2Q17.

“Ethiopia is also one of the very few African countries that has not liberalised its telecoms
market and introduced competition, so Ethio Telecom has a monopoly,” a sector expert was
quoted to have said.

The operator put its success down to an expansion drive that cost them over $1.6 billion in the
last few years. The expansion they said contributed ‘an integral part in terms of customer base
and infrastructure growth.’

“The expansion project has also significantly improved quality of services, with customers
enjoying 3G wireless services by upgrading the 2G network across all regions covering all over
the country; with also 4G LTE, super-fast services, launched in Addis Ababa.

“Over the past few years, ethio telecom has been transforming itself to meet its vision of
becoming a world class operator and our journey so far shows we are on the right track,” a
statement on its website read.

Ethio Telecom’s network capacity currently stands at 62 million mobile subscribers, 3 million
fixed line users with a mobile service coverage of 85%. Ethiopia is Africa’s second most
populous nation behind Nigeria and the numbers are believed to have played a significant part.
They also boast a vast fiber route that allows optical fiber network coverage as well as an
International Gateway Capacity; 42 Gbps (including 3 Terrestrial Route through Djibouti, Sudan
& Kenya and a satellite back up).

The East African country is an economic powerhouse in the region having surpassed
neighbouring Kenya to become the biggest economy in the region. Their economic strides have
received praise of international lenders like the World Bank and International Monetary Fund
(IMF).

A SWOT analysis of a telecommunication company appraises the company's health by looking

at its resource strengths and weaknesses concerning the quality of how it sends and receives data
and information globally over fiber-optic cables, networks, antennas and other communications
equipment. The analysis also identifies external opportunities and threats that may help or hurt
the company in the future.

Cutting-edge fiber-optics technology, high-performing cable equipment, a respected brand name,

excellent customer service and a strong sales team are just a few strengths that boost the resource
capabilities of a telecommunication company. These strengths are attributes that enhance the
company's competitive advantage.

Weaknesses

Corroded cable lines, slow service and lackluster sales are three weaknesses that can hurt a
telecommunications company. Company weaknesses are competitive deficiencies that place the
company at a disadvantage in the marketplace. If corroded cable lines aren't replaced and slow
service continues, for example, angry customers will switch to a rival telecommunications
company that offers better services.
Opportunities

New technologies, increasing consumer interest and a decrease in competition are just a few
external opportunities that can really help a telecommunications company in the long run.
Opportunities are beneficial, outside events that a company can use to boost its existing
strengths. A telecommunication company keen on rapidly adopting new technologies, for
example, would highly benefit from immediately investing in new fiber optics the moment
they're introduced in the marketplace, especially if they speed up service.
Threats
A sluggish economy, increasing competition and increased government regulations against the
telecommunications industry are just a few external threats that can limit a telecommunications
company's future success. Threats are outside events or influences that create future hurdles for a
company. New rivals that offer customers fast service and cutting-edge technology, for example,
may lure an older telecommunications company's existing customers away, especially if the
older company can't offer the same new features.
What Are Internal & External Environmental Factors That Affect Business?
The internal business environment includes factors within the organization that impact the
approach and success of your operations. The external environment consists of a variety of
factors outside your company doors that you typically don't have much control over. Managing
the strengths of your internal operations and recognizing potential opportunities and threats
outside of your operations are keys to business

Organizational Direction

The role of company leadership is an important internal business factor. Your leadership style
and the styles of other company management impact organizational culture. The positive or
negative nature, level of family-friendliness, effectiveness of communication and value of
employees are cultural implications that result from leadership approaches. Companies often
provide formal structure or direction with mission and vision statements. These are forward-
looking statements that provide the business for company decisions and activities.
Other Internal Factors

The strength of your employees is another crucial internal business factor. Motivated, hard-
working and talented workers generally produce better results than unmotivated, less-talented
employees. Your business processes and relationships within and between departments and
employees also significantly impact business effectiveness and efficiency. In a high-performing
workplace, employees not only have talent, but they work well together and collaborate on ideas
and resolutions.
External Competition

One of the most critical external business factors is competition. Whether you operate in a
concentrated industry with a few major competitors or a large industry with many competitors,
you need to know the competition. Many companies do competitive analysis to compare their
offerings and prices to those of competitors. When developing business philosophies and
products, it is helpful to use your strength in quality production, customer service or operational
efficiency to build competitive advantages that benefit your customers.
Other External Factors

Other common external factors fall into several categories, including socio-economic, legal or
ethical, political and technological. Socio-economic factors relate to the values, attitudes and
concerns of your target customers and their economic abilities to afford your products. The legal,
ethical and political environments generally relate to your need to abide by business laws and to
meet the ethical or social responsibility standards of your customers and communities. In some
industries, technological evolution drives the need for companies to adapt and constantly
research for improvements.
Organization's External Environment

The external environment of an organization are those factors outside the company that affect the
company's ability to function. Some external elements can be manipulated by company
marketing, while others require the organization to make adjustments. Monitor the basic
components of your company's external environment, and keep a close watch at all times.

Customers

Your customers are among the external elements you can attempt to influence, via marketing and
strategic release of corporate information. But ultimately, your relationship with your clients is
based on finding ways to influence them to purchase your products. Market research is used to
determine the effectiveness of your marketing messages, and to decide what changes can be
made to future marketing programs to improve sales.
Government

Government regulations in product development, packaging and shipping play a significant role
in the cost of doing business and your ability to expand into new markets. If the government
places new regulations on how you must package your product for shipment, that can increase
your unit costs and affect your profit margins. International laws create processes that your
company must follow to get your product into foreign markets.
Economy

As with the majority of the elements of your organization's external environment, your company
must be efficient at monitoring the economy and learning how to react to it, rather than trying to
manipulate it. Economic factors affect how you market products, how much money you can
spend on business growth, and the kind of target markets you will pursue.
Competition

Your competition has a significant effect on how you do business and how you address your
target market. You can choose to find markets that the competition is not active in, or you can
decide to take on the competition directly in the same target market. The success and failure of
your various competitors also determines a portion of your marketing planning, as well. For
example, if a long-time competitor in a particular market suddenly decides to drop out due to
financial losses, then you will need to adjust your planning to take advantage of the situation.