Ethio Telecom CEO Frehiwot Tamiru has emphasized the need for improved land acquisition procedures, highlighting them as a major obstacle to the company’s network expansion this year.

Tamiru’s remarks were made during a parliamentary session last week, during which the performance of both Ethio Telecom and the Ethiopian Telecommunications Authority was reviewed.

The state-owned telecom operator plans to invest US$1 billion in expanding its network infrastructure in the current fiscal year, as revealed by the CEO. The investment will fund the deployment of 1,298 new mobile sites, primarily in urban and suburban areas.

“Addis Ababa is the most challenging city for tower installation compared to rural areas, which fare better in this regard,” Frehiwot noted.

However, lawmakers have criticized telcos for their limited coverage in rural areas and high service costs. In addition to land acquisition issues, other challenges facing the sector were identified, including security concerns, financial constraints, difficult road access, unreliable commercial electricity, vandalism, and fraud.

While these factors all pose difficulties, land acquisition was identified as the most pressing issue.

As part of mobile network rollout, securing land for cell sites and fiber connections is critical. Balcha Reba, director-general of the Ethiopian Communication Authority, echoed Tamiru’s concerns, calling on MPs to engage with their constituents to streamline the land allocation process for telecom development.

The CEO also pointed out that the success of the network rollout now depends heavily on external financing. “We are facing a shortage of finance, and external funding is critical to sustain our expansion,” Tamiru said.