How to implement

1. Privatization: Ethiopia’s telecommunications operator should be liberalized to allow free entry and competition which benefit the national economy and improve telecommunications activity. Once the government frees up the telecommunications market to private sectors, these companies will compete by price and quality of service. As a result, prices will go down and communication will improve. Shares of the telecommunications operators should be sold to the public. Opening up commercial telecommunications competition may be an effective way of stimulating rural development and providing significant social and economic benefits to impoverished areas.

2. Government policy and regulation: Ethiopia’s government should establish an impartial governmental regulatory body to control the telecommunications industry, and set and uphold standards within the industry. Some telecommunications competition and universal coverage concern may need some level of government regulation. Leaving the telecommunications industry entirely in private hands may lead to abuse of power by big investors and it may reduce the number of average small scale investors. Private investors have little or no incentive to establish technology links in rural areas because of various geographical barriers to remote areas. The government should mandate new service providers serve both urban and rural areas.

3. Investment: The government should encourage the participation of foreign private investors in the telecommunications industry. It is important to stimulate private investors to establish public services such as Internet cafés and telecentres. Telecommunications service carriers in rural areas should be provided easy loan requirements, lower taxes and ease to register such businesses.

4. Wireless and satellite infrastructure: The use of satellites would provide faster and broader telecommunications access. Wireless and satellite infrastructure has lower line cost, improves reliability and enhanced flexibility. Also, wireless and satellite infrastructure includes the use of semifixed analog mobile placed in communities without telecommunications access. This infrastructure and technologies will contribute to the economic development by improving delivery of education through tele-education, and delivery of healthcare through e-medicine.

5. Building local capacity: Local and regional manufacturers of telecommunications equipment should enhance the training opportunities. Developing the capacities of local technical experts in the telecommunications field is important to create sustainable development.

References