Ethiopian telcos raise prices as costs bite
In today’s edition of Techpoint Digest, we discuss Ethiopia hiking data prices, Flutterwave acquiring Mono, and Zimbabwe hitting bg tech with new tax.
<br />
Sälemetsiz be,<br />
<br />
<br />
<br />
Victoria from Techpoint here,<br />
<br />
<br />
<br />
Here’s what I’ve got for you:<br />
<br />
<br />
<br />
<br />
Ethiopia’s cheap data era faces reality check<br />
<br />
<br />
<br />
Flutterwave acquires Mono<br />
<br />
<br />
<br />
Netflix, Bolt, Starlink hit by new Zimbabwe tax<br />
<br />
<br />
<br />
<br />
Ethiopia’s cheap data era faces reality check<br />
<br />
<br />
<br />
<br />
Photo by Jonathan Kemper on Unsplash <br />
<br />
<br />
<br />
In this new year, mobile users in Ethiopia have started paying more for data, and both operators are pointing to the same culprit: the economy. Ethio Telecom and Safaricom Ethiopia have announced tariff increases, pointing to the same pressures: a weaker birr, rising costs, and the heavy price of expanding and maintaining nationwide networks. It’s a shift that signals a tougher phase for a market that has enjoyed falling data prices in recent years.<br />
<br />
<br />
<br />
Safaricom Ethiopia’s increase has drawn the most attention. The operator announced an average 44% hike in mobile data prices, its most aggressive pricing move since launching in Ethiopia two years ago. While the company says the change is about long-term sustainability, the move has sparked public backlash, especially from students, freelancers, and small businesses that rely heavily on mobile Internet.<br />
<br />
<br />
<br />
Much of the strain comes from Ethiopia’s decision to let the birr float freely in mid-2024, triggering a sharp depreciation. That has hit telecom operators hard, particularly Safaricom, which earns revenue in birr but pays a large share of its costs in dollars. The company says about 85% of its capital spending and roughly half of its operating costs are foreign-currency denominated.<br />
<br />
<br />
<br />
Ethio Telecom, meanwhile, has framed its own adjustment as modest and protective. The state-owned operator says dozens of commonly used low-value data bundles remain unchanged, including small ETB 1, ETB 2, and ETB 5 packages. Special bundles for students, teachers, and people with disabilities were also left untouched, while discounts on telebirr data purchases were increased to 20%.<br />
<br />
<br />
<br />
<br />
The contrast has sharpened the debate around affordability. Industry data show...
