ECA Issues a Final License to Safaricom Telecommunications Ethiopia PLC
The Ethiopian Communications Authority(ECA) has issued the Final License to Safaricom Telecommunications Ethiopia PLC following its incorporation as a local Telecommunications Operating Company.
Safaricom was awarded the consortium by the Ethiopian Communication Authority(ECA) comprising Vodacom, Vodafone, Sumitomo Corporation and CDC Group, and was designated as a provisional licensee for the nationwide full-service Telecommunications license last month.
In a press release issued by the Communication Authority, they said they will incorporate Safaricom Telecommunications Ethiopia PLC within forty-five working days after the designation date, and the communication giant will consequently execute the Provisional License Agreement executed by the parent company within three (3) working days of the commercial registration date.
“Pursuant to Articles 40 and 41 of the Tender Regulations, the Designated Licensee (Global Partnership for Ethiopia) shall incorporate a local company within forty-five (45) calendar days following the designation date, and the local company shall execute the Provisional License Agreement executed by the parent company within three (3) working days of the commercial registration date.” ECA in their Press release.
Accordingly, the Designated Licensee and parent company, Global Partnership for Ethiopia, has incorporated and registered its local company Safaricom Telecommunications Ethiopia PLC. The local company has executed the final License Agreement in due time.
The ECA has therefore granted a nationwide full-service Unified Telecommunications Service License to the Safaricom Telecommunications Ethiopia PLC effective from 9 July 2021, valid for a term of fifteen (15) years from the Effective Date, and renewable for additional terms of fifteen (15) years subject to fulfilment of all license obligations.
Safaricom had earlier expressed their delight in working with the EAC saying the market is home to over 112 million people will be a good opportunity for them to deliver a digital lifestyle to them and invest in infrastructure in the country, among other sectors.
The communication giant paid $850 million for the license, beating South Africa’s MTN, which had also bid for a license with an offer of US$600 Million.