The Ethiopian Communications Authority has recently issued a new directive that outlines the license fees for companies looking to become internet service providers (ISPs). The directive, which falls under Communication Service Decree No. 1148/2011, sets out the costs for obtaining an ISP license, with fees reaching up to five million birr. In addition to the initial license fee, licensed companies are also required to pay an annual service charge of 1% of their gross income.
The Communication Service License and Management Fee Guidelines also introduce specific fees for companies interested in offering data center services. Applicants looking to provide data center services must pay a license fee of 500,000 birr and contribute 0.5% of their annual revenue to service fees for a 10-year license. This new structure aims to regulate the data center industry and ensure that companies are operating in compliance with the established guidelines.
Entities seeking to offer call center, value-added telecommunication, or virtual internet services on a one-year basis will be charged a license fee of 35,000 birr. This fee structure allows for a more accessible entry point for companies looking to provide these specific services, encouraging competition and innovation in the telecommunications sector.
Obtaining an ISP license not only allows companies to provide internet services but also opens up opportunities to offer additional services such as data center, call center, and other telecommunications infrastructure services. Similarly, data center providers can expand their offerings to include value-added telecom services like call centers, creating a more integrated and diverse telecommunications landscape in Ethiopia.
The directive also outlines a structured licensing system for various telecom service equipment, requiring fees for devices such as mobile phones, fax machines, POS terminals, and mobile WiFi routers. By regulating the licensing of telecom equipment, the Ethiopian Communications Authority aims to ensure the quality and reliability of telecommunications services in the country.
Overall, the new regulations provide clear guidelines for the licensing process in Ethiopia’s growing telecommunications sector. By setting out specific fees and requirements for obtaining an ISP license and offering related services, the directive aims to promote transparency, competition, and innovation in the telecommunications industry. Companies looking to enter the market as ISPs or expand their services in the sector will need to adhere to these new guidelines to operate legally and effectively in Ethiopia.