Prepared by: Fanta Adane
Manager, Internet Service Division
Ethiopian Telecom. Corporation
fadane@telecom.net.et

1.  Introduction
1.1  The project

Ethiopia has joined the world of the Internet as of January 1st 1997. Ethiopian Telecommunications Corporation (here after ETC), being a transport and Service Provider (ISP) in the country, has taken the initiative to introduce the service and presently, there are 2590 Internet Users as of April 30, 2000.

ETC has conducted a survey to assess the Internet market to determine the nature of connection that should be configured.

It was found out on the Survey that 96% of the respondents showed interest to obtain new services including the Internet. Interestingly, the survey indicated that most potential customers would be willing to make advance payment for new services while at the same time requiring the provision of terminal equipment. The Survey revealed that there is a promising potential market for Internet Service in Ethiopia.

The following pre conditions were fulfilled by ETC prior starting the service on January 1,1997.

1. Contractual agreement between ETC and Global One company to establish Internet connectivity in Ethiopia.
2. Configuration of the Internet node by Global One experts in Addis Ababa.
3. Training of 15 Internet Group members on TCP/IP Architectural configuration and other related system
Administration.
4. Preparation of procedures, Rates and office layout for the new
Service

1.2  The experience of other African countries
1.2.1  Connectivity conditions

The experience of other African countries was taken into consideration. In the survey, it was found out that there could be different phases (stages) for joining the Internet. The advice of South Africa Internet Providers (ISPs) and experts was that it is necessary for an ISP to define the kind of Market it is targeting and design the start up of the system that best suites. Besides, the experience of other ISPs tells us that at present stage of microelectronics, a system should not be designed so large catering to cover future demands beyond 2 to 3 years.

1.2.2 Internet Tariff

When one compares the Internet tariff in Ethiopia, it is cheaper than ZamNet of Zambia and IAZ of Zimbabwe. Ethio Internet Center charges aversely USD 1.62 for 1 hour where as ZamNet and IAZ (Zimbabwe) charges USD 10 for 1-hour service. Since South Africa is the oldest and the pioneer of the Internet service in Africa, it is not surprising to see many ISPs delivering the service on a competitive base ranging from USD 0.70 to 1.40 per hour (please see the following Internet tariff table.)

Table 1
Internet Tariff of some of the ISPs in Africa as of September 1996
(Charges are IN US Dollar)

N.B: * The Tariff of Ethio Internet is an average fee taken from 5 different categories.

2.  Existing status of the Internet service in Ethiopia
2.1  The user base and category of the Internet service

Ethio Internet center had 617 subscribers base who are prepared to start the service by settling their necessary fees to get the service within one month (i.e. in January 1997). Even though, both type of services i.e., dial-up & dedicated were assumed to be given, it is the dial-up access which is the steeping stone of our service. Five categories of dial-up access services were established by the Marketing study group.
These categories are:

1. Individual
     1.1 Ind. I
     1.2 Ind. II
2. International, NGOs, Embassies and Business sectors
3. Public Educational, Health and Agricultural sectors.
4. All non-profitable governmental and other indigenous sectors.

Following are the number of active Internet Subscribers, percentage and the monthly given hours based upon their choice of category.

Table 2
Number Of active Internet Subscribers as of April 30, 2000

N.B. 1) The monthly hours are not restricted to any one, but
there will be additional fee. For example, for category 1 & 2, the users have to pay USD 4 for every extra hour used beyond the given hours where as category 3 & 4 users have to pay US$ 2 for every extra hours used.
2) 130 accounts are terminated because of unsettlement of the monthly bills as of April 30, 2000.

2.2 Connection and monthly fees of the service

The connection and monthly fees of the Internet service are based on flat rate system. However, for categorization of our customers on given hours, the service is divided into 5 categories as shown on the next table.

Table 3
Connection & monthly fees of the categories of the service

Individual - I

N.B: The above charges are set in USD. However, the actual payment is in Eth. birr based on the weekly auction rate of the National Bank of Ethiopia.

2.3 Dedicated access

ETC is planning to render a dedicated Internet access to international, business organizations, NGO's and Embassies based on their request.
The necessary pre-conditions i.e., routers are ready for this purpose. However, upgrading of the International link or bandwidth to 1 Mbps is underway and this service will be given when upgrading work is accomplished. ETC has received a number of applications from International, NGOs and governmental offices requesting for a dedicated type of service.

2.4 Rending a Web page service

One can use the World Wide Web to promote products, services and ideas for a fraction of the cost of traditional advertising and marketing compared to other media. In addition, pages can be updated instantly, so changes and corrections are painless.

Ethio Internet gives a web page development service to its subscribers who need the work to be done by the office. However, any user can design or get designed by others who have got the skills and bring to the office for hosting that needs a minimal fee for uploading and verification work.

2.4 Establishments of Multipurpose Telecenters and Cyber café

2.4.1 Multipurpose Telecenters

There are trials to establish multipurpose telecenters in the country. The Ethiopian Science and Technology Commission and the British Council have implemented a pilot project in a town called wolliso which is 114 km from the Capital of the country. Besides, Project proposals have been submitted to donor agencies for the establishment of multipurpose telecenters in the National Regional of states. On the other hand, Regulatory issues on telecenters and cyber café services are under preparation by the Ethiopian Telecommunications Agency.

2.4.2 Cyber Café services

ETC is intending to give cyber café services in 8 selected areas in Addis Ababa and in the capitals of the National Regional states. The UNDP/ETC Internet Project contains components for cyber café services. Procedures, tariff, and training of workers for this purpose have been completed and the implementation of the UNDP/ETC Internet Project is expected to start the service.

3. The expansion of the Internet project

As Internet is an information resource to a nation, it is mandatory to expand the service in the National regional States of the country so that students, teachers, doctors, businessmen and other citizens will have access to it. Therefore, ETC has taken so many trials to get aid from donor agencies like USAID and UNDP. Following the project proposal submitted to UNDP, an MOU was signed on July 1998 between the Federal Democratic Republic of Ethiopia and the UNDP_Africa to expand the Internet services in the country with a bandwidth of 1 Mbps. The cost of the project is estimated to be USD 1,303,000 out of which USD 600,000 will be covered by the UNDP - Internet Initiative for Africa and the rest USD 703,000 will be covered by ETC.

The life of the time project is estimated to be 3 years and it was assumed that in 1999 the first phase of the project, which is preparation of documents, bid evaluation and expansion of the National gateway, would be completed. However, the implementation of the first phase is delayed beyond the expectation time. Besides, the expansion of the Internet Services is expected in 8 Capitals of the National regional states of the country particularly, i.e., in 4 cities Big PoP and the other 4 cities small PoP services are expected to be implemented by year 2001.

4. Conclusion

The use of Internet Service in Ethiopia is very encouraging and the user base is growing at a tremendous rate. ETC has doubled its Internet bandwidth from 256Kbps to 512Kbps as of November 1998. Besides, the UNDP-ETC Internet Project is expected to expand the services in the country through installation of big and small PoPs. Moreover, establishment of an advanced training center and 8 cyber café stations are the main components of the project.

ETC is encouraging its existing and potential users to use the service through reduction of its tariff. 25% of reduction is given to individuals, International, Business and Governmental Sectors and 50 % of reduction is given to public educational, health and agricultural sectors respectively as of November 1,1997. Additional Free on line hours (3-10 hours) is also given to motivate users in their communication and information need.

ETC is the sole ISP at present and it is expected that other ISPs will be established following the government's proclamation, which invites strategic partner in the telecommunications and related sectors.