Ethiopia Internet Case Study

give ETA more control over the

authorization may have equipment

market. Under the licence agreement,

confiscated by the Agency, and in any

the Agency would fix price caps and

case ETC can refuse to connect

establish specific conditions for the

unauthorized apparatus.

provision of the service to protect the

customer (clear indication of tariffs,

2.7

International traffic and

indicators of time, etc). This strategy

revenues

reflects a certain lack of confidence

in, or familiarity with, the market

International traffic has shown steady

mechanism in providing the consumer

continuous growth in the past ten

with desired service levels.

years. The main destinations for

international calls are Europe, followed

Control over customer equipment

by United States and Asia. ETC had a

covers any kind of telecommunication

total international outgoing minutes

equipment, from the most complex

in 2001 of 13'580'200 and incoming

router to the simplest telephone

minutes of 43'677'930. These

handset. Following the 1996

generated a total international

Proclamation, ETA also has to approve

revenue of Birr 312'968'000

TVRO (television receive only) and

(Figure 6).

radiocommunication equipment, and

can specify any other equipment that

As for many other developing

requires its approval. Approval is subject

countries, international traffic (and

to compliance with certain standards,

especially incoming traffic) represents

which have been specifically established

one of the major sources of revenue

by the ETA, and are listed in a two 

for ETC, accounting for up to 70 per

volume compilation.

cent of total revenues. However today,

following the reduction of international

There are no blanket licences or

settlement rates, and the spread of

general approval for telecom

VoIP, the international portion of

equipment: in the case of importation

revenues constitutes less then the

of equipment, the importer (a private

40 per cent of the total, while a

individual importing an handset for

growing place is being taken by mobile

private use, or a company importing

and Internet services.

equipment) must ask ETA for approval

and may then sell or connect the

For the present, as ETC is the only

equipment to the telecommunication

operator, rebalancing of tariffs and

system. Any person found in

interconnection are not an issue, and

possession of equipment without

have not been dealt with by ETA.

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