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Safaricom gains as Ethiopia cuts cost on calls

Safaricom's subsidiary in Ethiopia has been handed a boost after the country's telecommunications regulator cut call rates

The Ethiopian Communications Authority (ECA) has reduced Ethiopia's Mobile Termination Rates (MTR) by 25.8%. The rates have lowered from 0.31 Ethiopian BirrB (about Ksh 0.72) per minute to 0.23 Ethiopian Birr (about Ksh 0.54) per minute.

The latest change will take effect from May 1 until the end of April 2025. The cut comes after the regulator carried out a cost study, which it said was aimed at establishing a "level playing field" and creating an environment where the two operators, Ethio Telecom and Safaricom Telecommunications Ethiopia Plc.

This rate cut will help Safaricom's subsidiary in Ethiopia reduce costs for connecting calls with Ethio Telecom and potentially attract more customers with its suite of services, including voice, SMS, and mobile money.

Safaricom PLC, which owns 51.67% of its Ethiopian subsidiary, has recently grown its customer base in Ethiopia to 9 million, compared to Ethio Telecom's 74.6 million.