Ethio Telecom Targets 96.2 Million Customers, ETB 295 Billion Revenue in 2026/27
September 7th 2026
The plan is focused on moving the company beyond traditional telecommunications and accelerating its transformation into a technology-driven digital enterprise. Customer experience, network quality, digital inclusion, revenue diversification and operational efficiency are among the key priorities for the new financial year.
Ethio Telecom has unveiled its 2019 EFY (2026/27) annual business plan, outlining an aggressive expansion of connectivity, digital services, financial technology, cloud infrastructure and artificial intelligence as the operator enters the second year of its Next Horizon: Digital & Beyond 2028 strategy.
The plan is focused on moving the company beyond traditional telecommunications and accelerating its transformation into a technology-driven digital enterprise. Customer experience, network quality, digital inclusion, revenue diversification and operational efficiency are among the key priorities for the new financial year.
Ethio Telecom said the first year of the three-year strategy delivered progress in areas including digital infrastructure expansion, connectivity, the telebirr financial ecosystem, enterprise and cloud services, operational efficiency and financial performance. The company has subsequently reviewed the remaining strategy period to reflect changes in Ethiopia’s economic, regulatory, technological and competitive environment.
A major focus for 2026/27 will be network expansion and improved service quality. Ethio Telecom plans to increase overall mobile network capacity from 115.1 million to 135.7 million subscribers, while 4G capacity will rise from 22.79 million to 35.31 million. 5G capacity is expected to nearly double from 1.41 million to 2.70 million.
The operator also plans to expand its 4G footprint, with 4G sites targeted to increase to 11,014, while population coverage is expected to reach 95%, up from 82.23%. Geographic coverage is targeted to rise from 36.3% to 54%, with the number of LTE-covered towns increasing from 1,200 to 1,500.
5G coverage will also expand, with the number of 5G sites expected to increase from 340 to 648, while 5G-covered towns will rise from 33 to 73. Ethio Telecom is also planning further fibre deployment to strengthen transmission infrastructure and improve network resilience.
Rural connectivity is another major component of the plan. The operator intends to deploy 1,685 additional mobile sites, including 605 rural sites, bringing connectivity to more than 1,400 kebeles and 4.5 million people. The company also plans to promote affordable smartphones and digital literacy to help underserved communities make greater use of digital services.
On fixed connectivity, Ethio Telecom plans to deploy 1 million new DQODN assets and accelerate the migration from copper to fibre. Its national backbone fibre network is expected to expand from 23,442 km to 25,642 km, while residential broadband subscriptions are targeted to increase by 227,400 and business subscriptions by 28,300.
The company will also strengthen international connectivity by increasing International Gateway and cache capacity from 4.3 Tbps to 5.2 Tbps. It plans to integrate additional content delivery networks, including Google, Meta, Netflix, Cloudflare and CDN77, while also launching services using submarine cable capacity.
Digital services will remain central to Ethio Telecom’s transformation. The company plans to increase SuperApp adoption to 50% of eligible smartphone users and digital self-service adoption to 40%. It will also expand artificial intelligence, cloud computing, digital platforms and in-house software development across its operations.
Its data centre infrastructure is set for further expansion, with IT load capacity increasing from 5 MW to 6.24 MW and rack capacity growing from 624 to 752 racks. Cloud infrastructure will also be expanded substantially, including an increase in computing capacity and the deployment of additional AI servers.
Ethio Telecom is targeting the launch of 312 new and enhanced products and services during the financial year. These will span consumer connectivity, fintech, digital lifestyle services, enterprise solutions and international business.
The operator also plans to distribute more than 2.6 million connectivity devices, including 1 million ZNEXUS affordable smart devices, as part of efforts to improve smartphone access and accelerate broadband adoption.
The telebirr platform is expected to remain a major growth engine. Ethio Telecom is targeting 67.69 million telebirr customers, an increase of 7.1 million during the year. Total telebirr transactions are projected to reach 4.99 billion, with transaction value expected to rise to ETB 7.4 trillion.
Digital financial services are also expected to expand, with microcredit planned to increase to ETB 35.04 billion, while digital savings are targeted at ETB 26.42 billion. The telebirr merchant network is projected to grow to 569,300 merchants, while its agent network is expected to reach 452,800.
Ethio Telecom is also positioning its ZemenGebeya e-commerce platform for significant growth, targeting ETB 1.4 billion in gross merchandise value, representing a 279% increase from the previous financial year. The company plans to drive this growth through wider merchant participation, an expanded product range, improved customer experience and stronger payment and fulfilment capabilities.
Financially, Ethio Telecom is targeting ETB 295 billion in annual revenue, representing a 36.7% increase from the previous fiscal year. Digital and adjacent businesses are expected to contribute ETB 77.45 billion, or 26.3% of total revenue, highlighting the operator’s shift toward technology and digital services.
The company is also targeting USD 253.7 million in foreign-currency earnings through international business, infrastructure sharing and international money transfer services. EBITDA is projected at Birr 154.4 billion, with an estimated margin of 52%, while operating profit is projected at approximately Birr 127 billion.
Ethio Telecom expects its expansion and digital transformation activities to generate wider economic benefits. During the year, the company plans to support more than 644,000 ecosystem partners and maintain a workforce of about 49,200 employees, while creating an additional 163,375 direct jobs and income opportunities through network and digital platform expansion.
The operator expects to contribute ETB 43.1 billion in dividends and ETB 83.8 billion in direct and indirect taxes to the Ethiopian economy. It will also contribute ETB 8.1 billion to the National Disaster Risk Response Fund.
Sustainability, cybersecurity and digital trust also feature prominently in the business plan. Ethio Telecom plans to expand renewable energy use, improve energy efficiency, strengthen cybersecurity and protect critical digital infrastructure and customer data.
Overall, the 2026/27 plan positions Ethio Telecom to deepen its transformation from a traditional telecom operator into a diversified digital technology company, while supporting Ethiopia’s broader Digital Ethiopia 2030 agenda and contributing to the country’s digital economy.
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