ETC launches GPRS servicesIn an effort to boost telecoms revenues, which continue to fall short of target, the Ethiopian Telecommunications Corporation (ETC) has announced the launch of third generation GPRS service, internet utilising mobile data transfer technology, which can be used to download and exchange digital data.
The new service will also enable subscribers to locate their vehicle whereabouts and their destination after connecting their GPRS enabled mobile apparatus with another technology, Global Positioning System (GPS).
The corporation says it will soon embark on more sophisticated services, restoring the interrupted voicemail service and launching a multimedia messaging (MMS) service, which enables users to exchange messages that include multimedia objects, such as videos.
For now, only the post-paid mobile service subscribers will be able to enjoy the GPRS service, but ETC says pre-paid subscribers will shortly be able to subscribe.
"The pre-paid subscribers will be required to pay 45 birr plus VAT activation fee, which is exempted for the post paid subscribers," Corporate Communication Manager of the corporation, Abdurahim Ahmed, said last Thursday, adding that the tariff will be one cent for each kilo bite transferred.
Though the technology allows up to 114 kilobytes per second (kbs) transfer rate, ETC said the best initial service users should hope for is 21kbs. The network of the new service is the existing network that supports all mobile subscribers and is often criticised for its poor quality.
Experts close to the state monopoly telecom provider speculate that the latest moves - the launch of new services, tariff reductions on mobile SIM card sales and improving of airtime tariffs for internet users - are all efforts aimed at boosting poor revenues.
Official reports recently revealed that various telecoms services sales, including mobile service, have fallen short of targets by significant amounts. Mobile service sales showed a shocking underperformance by 20 per cent, mainly due to network congestion and late projects.
The corporation's report submitted to the Ministry of Transport and Communications (MoTC) explains that the first nine months of the concluded budget year saw overall telecom service sales falling short of targets by an average of 19 per cent.
Despite the number of mobile subscribers mounting to 3.2 million, the earnings, partly from air time, is underperforming mainly due to network congestion. With the latest addition of GPRS, both the quality and sales revenues could further drop, experts caution.
ETC, which says its current network can accommodate up to 4.8 million mobile customers, explains the service quality problems will soon ease up as quality upgrading projects are being expedited.
"Segregation of networks where all of the corporation's network will fall under one big network is complete by more than 90 per cent and the remaining task of optimising the service has already started, so the quality problem will be eased through the latter operation. Continuous upgrading is a long term and continuous work," Abdurahim said.
The second phase of Global System for Mobile Communications (GSM) is also running late, contributing to the poor sales, according to the official report. And the poorest performing service, rural connectivity, registered a 29 per cent shortfall from the target sales during the concluded fiscal year.
Fixed line and public telephones sales revenues also fell short of targets. The public telephone revenues are said to have dipped because maintaining the broken Siemens phones was not feasible and they were pulled out of operation.
ETC, which pocketed a net profit of 921.3 million birr in nine months in 2007/08, is yet to declare its figures for the concluded budget year. It did not declare its mid-year performance either. However, Abdurahim said the report was submitted to the board and MoTC and will soon be made public.
Following the sales revenues' shortfall, the corporation, which finances its own operations, is expected to announce a modest profit.
By Kirubel Tadesse
Capital Ethiopia
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