Consortium led by Safaricom wins Ethiopian operating licence (updated)
22/05/2021 12:12
(Updates with quotes, details)
May 22 (Reuters) - Ethiopia's telecommunications regulator
awarded one operating licence to a consortium led by Kenya's
Safaricom SCOM.NR and Japan's Sumitomo 8053.T , Brook Taye, a
senior adviser at the finance ministry, said on Saturday.
The consortium, which includes Vodacom VODJ.J , Vodafone
VOD.L , and British development finance agency CDC Group, paid
$850 million for the licence, Brook said. South Africa's MTN
MTNJ.J had also bid for a licence.
Africa's second-most populous country is hoping that the
opening of one of the world's last major closed telecoms markets
will create millions of online job opportunities.
As as as the licence fee, the consortium plans to invest up
to $8.5 billion in infrastructure among other areas, Brook said,
adding that it was expected to create between 1 and 1.5 million
jobs.
The operator will begin with 4G services, Brook said.
"We will soon open a bid for the remaining licence," said
Balcha Reba, director general of the Ethiopian Communications
Authority.
Balcha said MTN's offer of $600 million was deemed too low.
(Reporting by Dawit Endeshaw; Writing by Ayenat Mersie;
Editing by Alison Williams and Louise Heavens)
((ayenat.mersie@thomsonreuters.com;))