Ethiopia approves 1.5% telecom revenue levy for rural digital fund

Ethiopia's Council of Ministers has approved a new regulation establishing the Universal Access Fund, funded by a 1.5% levy on telecom operators' annual gross revenue to connect rural areas. This policy aims to advance the country's digital economy goals. The Ethiopian Communications Authority will manage the fund to address infrastructure gaps in underserved regions.

Ethiopia's Council of Ministers has approved Regulation No. 585/2026, establishing the Universal Access Fund to promote digital connectivity in rural and underserved areas. The fund will be financed by a mandatory 1.5% contribution from the annual gross revenue of all licensed telecommunications service providers in the country. This initiative, managed by the Ethiopian Communications Authority (ECA), seeks to eliminate technological isolation in remote communities, schools, and health centers.

Under a "Pay-or-Play" principle, telecom operators have flexibility: they can pay directly into the fund or invest in network expansion in unserved areas, deducting those costs from their contribution. Newly licensed operators receive a three-year exemption to help them establish operations. The fund prioritizes connectivity for rural schools and healthcare facilities, as well as access for women, persons with disabilities, and low-income households. It also supports the development of local digital content and technologies in indigenous languages, aiming to build an inclusive Ethiopian digital ecosystem.

To ensure compliance, the ECA imposes penalties on operators: a 2% fine for the first month of delay, increasing to 5% for each subsequent month. This regulation represents a structured effort to advance Ethiopia's digital inclusion goals, balancing regulatory requirements with opportunities for industry investment.

Awọn iroyin ti o ni ibatan

The Ethiopian Communications Authority has ordered Ethio telecom to reduce infrastructure rental fees for newcomer Safaricom Ethiopia. Payments must now mostly be in local birr instead of US dollars. Ethio telecom officials note this shift challenges their foreign exchange needs for infrastructure expansion.

Ti AI ṣe iroyin

Frehiwot Tamru, CEO of Ethio telecom, has warned that Africa could face a 30-year delay in digital progress without a comprehensive policy overhaul. Speaking at the GSMA Ministerial Roundtable in Barcelona, she criticized fragmented approaches to connectivity issues. She called for an integrated strategy to address the continent's digital divide.

The Communications Authority of Kenya has ordered a reduction in mobile termination rates from 41 cents per minute to 30 cents over the next four years. The measure aims to foster price competition among telecom operators and could lead to more affordable call charges for millions of Kenyans. It follows a 2022 study showing current rates exceed the actual cost of service delivery.

Ti AI ṣe iroyin

Ethio Telecom has started a digital service named TeleStory in Addis Ababa. The service seeks to enhance the company's offerings and increase national revenue. It provides benefits to customers while creating new job opportunities.

 

 

 

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