Unity University

Department of Marketing Management

Ethiotelecom and its E-commerce Platform Telebirr

Group Members (Ascending order)

Name . ID NO

Amir Awol UUA00324R

Ashenafi Feleke UUA00330R
Amanuel Kibreab UUA00325R
Ahmed Mustefa UUA00349R

Section___BK1R1N2_____________________

Instructor’s name __Daniel.S_______________

March 20/2023

Date of Submission:
Table of Contents
Introduction...............................................................................................................................................1
Background of the organization...............................................................................................................1
Background of the E-commerce Platform...............................................................................................2
Products and Services Offered by Ethiotelecom.....................................................................................2
Services Offered by TeleBirr....................................................................................................................3
Ethiotelecome business model..................................................................................................................4
Types of customers of Ethiotelecom.........................................................................................................5
Infrastructures Used by TeleBirr.............................................................................................................6
The contribution of the TeleBirr vs traditional marketing system........................................................6
Limitations of TeleBirr.............................................................................................................................8
Bottlenecks of Ethiotelecom......................................................................................................................8
Alternative Suggestion for Ethiotelecom.................................................................................................9
Introduction
E-commerce, or the buying and selling of goods and services online, has been rapidly growing in
popularity around the world in recent years. Ethiopia is no exception, with the country
experiencing a surge in e-commerce activity in recent years. With a young and growing
population, high levels of digital literacy, and a growing middle class, Ethiopia presents a huge
potential market for e-commerce businesses. However, despite the growth of e-commerce in
Ethiopia, there are still significant challenges that need to be addressed, such as the lack of
reliable internet access and trust in online transactions. This paper will explore the growth of e-
commerce in Ethiopia, the key players in the market, and the challenges and opportunities that
lie ahead.

Background of the organization

Ethiotelecom, also known as the Ethiopian Telecommunications Corporation, is the oldest and
largest telecommunications provider in Ethiopia. The company was established in 1894, during
the reign of Emperor Menelik II, as the Imperial Telegraph Service. At that time, the service was
only available to the royal family and high-ranking government officials. It was not until the
1930s that the service was extended to the public.

In the 1950s, the Ethiopian Telecommunications Service was established as a government

agency responsible for the provision of telecommunications services in Ethiopia. Over the years,
the agency underwent several changes, including a rebranding in 2001 as Ethiotelecom.

Today, Ethiotelecom is a state-owned corporation responsible for the provision of

telecommunications services across the country. The company offers a wide range of services,
including voice, data, and internet services, as well as mobile and fixed-line services.

Over the years, Ethiotelecom has played a key role in the development of telecommunications
infrastructure in Ethiopia. In the early years of the company, the focus was on expanding
telephone services to major cities and towns in the country. In the 1990s, the company began to
expand its services to rural areas, with a focus on providing telephone services to schools, health
centers, and other public institutions.

1
In recent years, Ethiotelecom has been at the forefront of efforts to expand internet access in
Ethiopia. The company has invested heavily in the expansion of its fiber optic network across the
country, with the goal of providing high-speed internet access to all Ethiopians.

Background of the E-commerce Platform

Telebirr is a mobile money service launched by Ethio Telecom, the state-owned
telecommunications provider in Ethiopia. Since its launch in 2019, Telebirr has become an
essential tool for millions of Ethiopians, providing a convenient and secure way to make
payments, transfer money, and pay bills using their mobile phones. In this article, we will
explore Telebirr in detail, including its services, hardware and software used, and its limitations.

Products and Services Offered by Ethiotelecom

Ethiotelecom offers a range of products and services to customers across Ethiopia. These
include:

1. Fixed-Line Services:

Ethiotelecom offers fixed-line services to residential and business customers across Ethiopia.
These services include voice and data services, as well as broadband internet access.

2. Mobile Services:

Ethiotelecom also offers mobile services under the brand name "Telecom Ethiopia." These
services include voice and data services, as well as mobile money services.

3. Internet Services:

Ethiotelecom offers a range of internet services, including ADSL, Wi-Fi, and mobile internet
services. The company has been working to expand its internet services across the country, with
a focus on increasing access to high-speed internet in rural areas.

4. ICT Services:

Ethiotelecom also offers a range of ICT services to businesses and organizations across Ethiopia.
These services include data center services, cloud computing services, and managed services.

5. Value-Added Services:

2
Ethiotelecom also offers a range of value-added services to customers, including entertainment
services, such as TV and video-on-demand services, as well as messaging and content services.

6. Wholesale Services:

Ethiotelecom also offers wholesale services to other telecom operators, providing access to its
network infrastructure and services.

Ethiotelecom offers a wide range of products and services to customers across Ethiopia. With a
commitment to expanding access to high-quality telecommunications services, the company is
well-positioned to play a key role in the country's economic development in the years to come.
As Ethiotelecom continues to expand its services and infrastructure, it is expected to continue to
drive innovation and growth in the telecommunications sector in Ethiopia.

Services Offered by TeleBirr

Telebirr Services:

Telebirr offers a range of services that allow users to manage their finances using their mobile
phones. These services include:

1. Mobile Money Transfers: Telebirr allows users to send and receive money to and from
other Telebirr users, as well as to non-Telebirr users using their mobile numbers. The
service is available 24/7, and transfers are processed instantly.

2. Bill Payments: Users can pay their utility bills, such as water and electricity bills, using
Telebirr. The service is available for a wide range of utility providers, and payments are
processed instantly.

3. Airtime Recharge: Telebirr users can recharge their mobile phones with airtime using the
service. The service is available for all mobile networks in Ethiopia, and airtime is
credited instantly.

4. In-Store Payments: Telebirr users can make payments for goods and services at
participating merchants using the service. The service is available for a wide range of
merchants, including supermarkets, restaurants, and petrol stations.

3
 Ethiotelecome business model
Ethiotelecom operates under a state-owned enterprise business model, which means that the
government of Ethiopia is the sole owner of the company. This model is common in many
developing countries, where the government plays a significant role in the economy and
owns many of the key industries and businesses.

Under this business model, Ethiotelecom is responsible for providing telecommunications

services to customers across Ethiopia, with a focus on expanding access to high-quality
services and promoting economic development in the country. As a state-owned enterprise,
Ethiotelecom is also responsible for generating revenue and profits for the government,
which can be used to fund other social and economic programs.

In recent years, Ethiotelecom has also adopted a customer-centric business model, with a
focus on understanding and meeting the needs of its customers. This has involved investing
in new technologies and infrastructure to expand access to high-speed internet and other
services, as well as improving customer service and support.

In terms of revenue generation, Ethiotelecom operates on a subscription-based model, where

customers pay a monthly fee for access to its services. The company also generates revenue
through value-added services, such as entertainment services and cloud computing services,
as well as through wholesale services, where it provides access to its network infrastructure
and services to other telecom operators.

State-owned enterprise
business model

EthioTelecom

Customer-centric business Subscription-based model

model

4
Types of customers of Ethiotelecom
Ethiotelecom caters to a diverse range of customers in Ethiopia, each with unique needs and
requirements. In order to satisfy the needs of these customers, Ethiotelecom offers a range of
products and services tailored to their specific needs. In this section, we will explore the different
types of customers that Ethiotelecom serves and their needs.

1. Individual Customers:

Individual customers are one of the most important customer segments for Ethiotelecom. These
customers include both urban and rural residents, with varying levels of income and education.
Individual customers have a range of needs, including access to high-quality internet and voice
services, as well as entertainment services, such as TV and video-on-demand.

For individual customers, Ethiotelecom offers a range of products and services, including mobile
and fixed-line voice and data services, as well as entertainment services, such as TV and video-
on-demand. Ethiotelecom also offers a range of affordable data packages and plans, catering to
customers with varying levels of data usage.

2. Business Customers:

Business customers are another key customer segment for Ethiotelecom. These customers
include small, medium, and large businesses, as well as government agencies and non-profit
organizations. Business customers have a range of needs, including reliable internet and voice
services, as well as value-added services, such as cloud computing and managed services.

For business customers, Ethiotelecom offers a range of products and services, including high-
speed internet and voice services, as well as ICT services, such as data center services and cloud
computing services. Ethiotelecom also offers a range of value-added services, including
managed services and wholesale services, catering to the needs of businesses of all sizes.

3. International Customers:

International customers are a growing customer segment for Ethiotelecom. These customers
include international businesses and organizations, as well as expatriates living and working in
Ethiopia. International customers have a range of needs, including reliable and high-quality
telecommunications services, as well as access to international calling and roaming services.

5
For international customers, Ethiotelecom offers a range of products and services, including
international calling and roaming services, as well as high-speed internet and voice services.
Ethiotelecom also offers a range of value-added services, such as managed services and cloud
computing services, catering to the needs of international businesses and organizations.

Infrastructures Used by TeleBirr

Telebirr is a mobile money service, which means that it can be accessed using a mobile phone.
To use the service, users need to have a compatible mobile phone that supports the service.
Currently, the service is available for smartphones running Android and iOS operating systems.

In addition to a compatible mobile phone, users also need to have a Telebirr account. To create
an account, users need to visit a Telebirr agent, who will register their details and provide them
with a Telebirr SIM card. The SIM card is used to access the service and make payments.

Telebirr uses a range of hardware and software to provide its services. The service relies on a
network of agents, who are responsible for registering users, providing SIM cards, and handling
cash transactions. Agents are equipped with a range of hardware, including smartphones and
point-of-sale (POS) devices, to facilitate transactions.

Telebirr also uses a range of software to provide its services. The service relies on a secure and
reliable mobile money platform, which is used to process transactions and manage user accounts.
The platform is designed to be scalable and flexible, allowing it to handle large volumes of
transactions and to adapt to changing user needs.

The contribution of the TeleBirr vs traditional marketing system

Telebirr has been a game-changer for millions of Ethiopians, providing a convenient and secure
way to manage their finances using their mobile phones. While the service has some limitations,
such as limited coverage and payment options, it has been instrumental in driving financial
inclusion in Ethiopia. As the service continues to evolve, it is expected to play an even greater
role in the country's economic development, empowering more Ethiopians to participate in the
digital economy.

6
Telebirr has revolutionized the way businesses in Ethiopia operate, by providing a secure and
convenient payment solution that is accessible to millions of people. It has also brought about
significant changes in the way businesses market their products and services, which has had a
positive impact on the country's economy. In this article, we will explore the contribution of
Telebirr to the marketing system in Ethiopia, and compare it to traditional marketing systems.

1. Increased Reach:

One of the key advantages of Telebirr is that it allows businesses to reach a wider audience than
traditional marketing systems. With Telebirr, businesses can sell their products and services
online, without the need for a physical storefront. This means that businesses can even reach
customers who may be located in remote or rural areas given they have good signals, where
access to traditional marketing systems may be limited.

2. Improved Convenience:

Telebirr has also brought about improvements in convenience, both for businesses and
consumers. With Telebirr, businesses can accept payments from customers without the need for
a physical point of sale, which makes transactions faster and more efficient. Consumers can also
make payments using their mobile phones, which means that they can shop from anywhere, at
any time.

3. Increased Security:

Telebirr has also brought about improvements in security, both for businesses and consumers.
With Telebirr, transactions are processed using a secure and reliable mobile money platform,
which provides protection against fraud and other security risks. This has helped to build trust in
online transactions, which is essential for the growth of e-commerce in Ethiopia.

4. Lower Costs:

Telebirr has also brought about cost savings for businesses, compared to traditional marketing
systems. With Telebirr, businesses can sell their products and services online, without the need
for a physical storefront, which can significantly reduce overhead costs. Telebirr also charges
lower transaction fees than traditional banking services, which can help businesses to save
money on payment processing.

7
Limitations of TeleBirr
While Telebirr has been a game-changer for millions of Ethiopians, there are still some
limitations to the service that need to be addressed. These limitations include:

1. Limited Coverage: While Telebirr has a wide network of agents across the country, there
are still some areas where the service is not available. This can be a barrier for users who
live in remote or rural areas, where access to mobile networks may be limited.

2. Limited Payment Options: Telebirr currently only accepts payments in Ethiopian Birr,
which can be a limitation for users who want to make payments in other currencies.

3. High Transaction Fees: Telebirr charges transaction fees for its services, which can be a
barrier for users who want to make small transactions. While the fees are generally lower
than those charged by traditional banking services, they can still be a significant cost for
low-income users.

4. Limited Integration: Telebirr currently only integrates with a limited number of

merchants, which can be a limitation for users who want to use the service to make
payments at a wider range of merchants.

Bottlenecks of Ethiotelecom
Despite its many achievements, Ethiotelecom has also faced many challenges over the years.
One of the biggest challenges has been the lack of competition in the telecommunications
market. Until recently, Ethiotelecom was the only provider of telecommunications services in the
country. This has led to criticism of the company for its high prices and poor quality of service.

Another challenge for Ethiotelecom has been the lack of access to foreign currency. As a state-
owned company, Ethiotelecom relies heavily on the government for funding. However, in recent
years, the government has faced a shortage of foreign currency, which has made it difficult for
Ethiotelecom to purchase the equipment and technology needed to expand its services.

Despite these challenges, Ethiotelecom remains a key player in the telecommunications market
in Ethiopia. With a commitment to expanding internet access and improving the quality of its
services, the company is well-positioned to play an even greater role in the country's economic
development in the years to come.

8
Alternative Suggestion for Ethiotelecom
These are some alternative suggestions for Ethiotelecom to overcome its weaknesses and exploit
opportunities:

1. Increase competition: One of the main weaknesses of Ethiotelecom is the lack of

competition in the telecommunications market. This has led to high prices and poor
quality of service. To overcome this weakness, the government could consider opening
up the telecommunications market to more competition, allowing other companies to
enter the market and offer services to customers.

2. Improve infrastructure: Ethiotelecom could also focus on improving its infrastructure to

provide better quality services to customers. This could involve investing in new
technology and equipment, as well as expanding its network coverage to reach more
customers in rural areas.

3. Offer more value-added services: To increase revenue and attract more customers,
Ethiotelecom could consider offering more value-added services, such as entertainment
services, messaging services, and content services. This would allow the company to
diversify its revenue streams and offer customers a wider range of services.

4. Partner with other companies: Ethiotelecom could also consider partnering with other
companies to offer joint services or products. For example, the company could partner
with a mobile phone manufacturer to offer bundled services, such as discounted data
plans with the purchase of a new phone.

5. Focus on customer service: To improve customer satisfaction and loyalty, Ethiotelecom

could also focus on improving its customer service. This could involve training staff to
provide better support and assistance to customers, as well as implementing new tools
and technologies to make it easier for customers to access services and support.

6. Expand internationally: Finally, to exploit opportunities in the global telecommunications

market, Ethiotelecom could consider expanding its services internationally. This could
involve partnering with other companies or acquiring new companies to expand its reach
and capabilities.

9
Reference
 S. (2021, June 7). When did mobile service start in Ethiopia? Across the
Sahara. https://flairng.com/african-countries/when-did-mobile-service-start-
in-ethiopia.html
 ethio telecom - Wikipedia Republished // WIKI 2. (n.d.). Wikipedia.
https://wiki2.org/en/Ethio_telecom
 When did telecommunications start in ethiopia? (n.d.).
https://moviecultists.com/when-did-telecommunications-start-in-ethiopia
 http://www.china.org.cn/business/laws_regulations/2007-06/22/
content_1214774.htm
 IT services for telecom companies, telecom operators and service providers.
(n.d.). t1-integration.ru.
https://t1-integration.ru/en/industries/telecommunications/
 TrueMerchant. (2021, May 4). 5 Ways for Small Businesses to Save on
Processing Fees. True Merchant. https://truemerchant.com/5-ways-for-
small-businesses-to-save-on-processing-fees/

10