The Ethiopian government has suspended the entry of foreign telecom infrastructure companies to the country, The EastAfrican reported. The decision may not affect foreign telecom service providers and operators that have submitted expressions of interest in buying a stake in Ethio Telecom, it added. The decision came after the government reviewed the list of companies intent on buying a 40 percent stake in the monopoly provider.
As well as service providers, the privatisation of Ethio Telecom has attracted a number of telecom infrastructure companies such as Helios Towers. Sources at Ethio Telecom told The EastAfrican that several foreign telecom infrastructure companies had approached Ethiopian authorities with intentions to build new telecom infrastructure and ultimately lease telecom towers and rent other facilities for incoming companies.
Attempts by the Ethiopian Communication Authority (ECA) to bring in foreign telecom infrastructure firms have angered Ethio Telecom, whose officials say they have spent billions of dollars on infrastructure in recent years. In protest, its management filed a complaint asking the government to intervene. Ethio Telecom CEO Frehiwot Tamiru said the government has decided not to allow foreign telecom infrastructure companies, according to The EastAfrican. They will not be allowed to operate in Ethiopia, he said.
Ethio Telecom intends to earn a substantial amount of money in rent from entrant companies. Ethio Telecom has also written a letter to the ECA to express its concerns over the ongoing privatisation process and is awaiting a response.
