Topnotch telecom
 It is time for a flawless mobile network and darting broadband internet connections! After years of complaints about outdated services of the sole and state-owned telecom provider in the country, Ethiopian Telecommunications Corporation (ETC), a new Ethio-France partnership has started its operations this week. France Telecom/ Orange has taken over ETC for the next two years and started a new telecom chapter with a new name, Ethio Telecom. Its mission: modernizing Ethiopia’s telecommunications to topnotch international standards. From left, new Minister of Communication and Information Technology, Debretsion G/Michael and Ethio Telecom’s new CEO Jean-Michel Latute.The newly established Ethio-France partnership, Ethio Telecom, has officially started its operations. Guided by France Telecom/Orange, the new company takes over the state-owned Ethiopian Telecommunication Corporation (ETC) for the next two years to improve and modernize Ethiopia’s telecom services. The signed contract involves a payment of 30 million euro to be completed in the next two years by the Ethiopian government. The modernization project’s performances will be evaluated by an international supervisor. The management transition from ETC to Ethio Telecom started in July with preparations for the actual kick-off last Monday, November 29, 2010, after the acceptance of the Council of Ministers. At a press conference held last Thursday, the new Minister of Communication and Information Technology, Debretsion G/Michael pointed out that the government executed various studies on modernization of the telecom sector before outsourcing ETC’s management. All studies concluded that a new management system is an absolute necessity for improvement. “We evaluated and decided to start building the company’s management structure from scratch,” he said, hinting at eTOM, the new structure-to-be and an internationally widely accepted framework for telecom providers. Debretsion describes the start of operations as a “fundamental departure” to entirely change telecom in Ethiopia. According to the minister, there are no capable telecom experts in Ethiopia to implement the eTOM framework. “This system is entirely new for the country so there’s an absolute need for international management with experience in new technologies,” he said. An important part of the modernizing mission is the transformation of knowledge. According to Debretsion two years are sufficient to complete this. The eTOM structure is considered to be the most widely used and accepted standard for business processes in the telecommunications industry. It drives down operational costs by analyzing the organization’s processes, thereby identifying and eliminating miss-steps and introducing new operational development. The structure basically simplifies operations thereby making the telecom company more (cost) effective. The government expects France Telecom/Orange to lift the much-criticized ETC to international standards. The 30 million-contract will be redeemed in the next two years by quarterly payments. In case of excellent performance, the government says it will grant an additional reward. According to minister Debretsion, a performance of more than 95 percent involves the award. If Ethio Telecom performs between 75 and 95 percent, the agreed payment of 30 million euro will be completed. But in case of underperformance, a penalty of 5 to 10 percent will be given and if the telecom company records below 60 percent the contract will even be terminated. New CEO Jean-Michel Latute unveiled the main projections of his management at the press conference. He said he will establish state of the art IT-solutions for all operations and aims to change work ethics radically, all this in order to lift the quality of telecom services in Ethiopia to international standards. France Telecom/Orange also plans to minimize the number of managers and staff in the different telecom departments. An Ethiopian management team will work alongside the French in order to effectively adapt to the new leadership of the company. France Telecom/Orange has appointed 24 managers that will work alongside a selected team of Ethiopians. In the announced structure, Engineer Issayas Dagnew will replace former ETC director Amare Amsalu. Issayas will be working as Chief Operating Officer (COO) under the new CEO Jean-Michel Latute from France. Issayas was a lecturer at Defense Force University , before his move to Ethio Telecom. With cut-backs in the number of managers and employees in order to increase effectiveness in Ethio Telecom, some employees will be made redundant, Minister Debretsion said, adding that they will be guided to a new job: “We are prepared to engage these employees in civil work, but this is not related to the new company.” The government predicts significant growth in the telecom sector for the next five years. The number of mobile subscribers, for instance, will increase to 45 million. Also, the broadband services are expected to grow and improve. The broadband tariff will decline within a short period of time, Debretsion promised. _______________________________________________________________ Source: By Muluken Yewondwossen Capital Ethiopia |
Kulfo 