Here Are the New Ethio Telecom Prices: What You Need to Know

Ethiopia's state-owned telecom provider, Ethio Telecom, has introduced a wide-ranging tariff increase, prompted by rising operational costs following the adoption of a floating exchange rate policy two months ago.

According to a communication brief obtained by Shega, the new tariffs affect mobile services, fixed and wireless broadband, international calls, Telebirr transfers, and SMS.

"The revision is driven by the recent devaluation of the Ethiopian Birr (ETB) due to significant changes in the national exchange rate policy," the brief states. "This shift has considerably increased our operational expenses, as many aspects of our infrastructure, particularly technology imports, international bandwidth, international call/SMS services, and equipment, are acquired in foreign currencies. With the increased costs, the current tariffs no longer align with the economic realities and directly impacting business sustainability, compelling us to revise our pricing model."

Ethio Telecom notes that the adjustments aim to ensure business sustainability and profitability in light of these macroeconomic changes. Efforts were made to maintain affordability, particularly for low-value packages, such as the daily 3 and 5 birr plans, the 1 birr/hour offer, and student, morning, and night packages, which remain unchanged.

However, the most significant increases affect international calls, with rates surging by up to 658%. Telebirr transfers to banks have also spiked. Ethio Telecom attributes these hikes to increased costs driven by foreign currency dependence for equipment and maintenance.

For voice services, the pay-as-you-go (PAYG) option has seen an average 20% price increase, while data PAYG remains unchanged at 0.20 birr per MB. Data packages have risen by an average of 18%, and voice packages have increased by an average of 37%.

In the updated pricing, SIM cards now cost 85 birr, but the unlimited monthly mobile data package remains unchanged.

This price adjustment follows a broader trend, with state-owned enterprises raising tariffs as they adapt to Ethiopia's new economic realities. Last month, the Ethiopian Electric Utility announced a four-year phased increase in tariffs, and the Immigration and Citizenship Services recently hiked passport fees by nearly 500%. 

____

The article and visual have been updated to correct SMS prices.