Ethio Telecom, Netflix in talks over Ethiopia expansion

Ethio telecom says it is in ongoing discussions with Netflix over the business model and market challenges that continue to limit the full rollout of the streaming service in Ethiopia.

The state-owned operator said Netflix already has cache servers hosted locally on its network, but that this technical arrangement has not yet translated into a full commercial service for Ethiopian users. Ethio telecom Chief Executive Officer Frehiwot Tamiru said the two sides are still working through the conditions needed for wider service delivery.

Speaking during the company’s 2025/26 fiscal year performance report, Frehiwot said it took years of negotiation to bring Netflix’s servers into Ethiopia. She said the process was difficult because of weak historical infrastructure and because Netflix initially doubted there were enough users in the country to justify the investment.

Ethio telecom said the local caching system is part of Netflix’s Open Connect network, which places servers inside internet service provider facilities to store popular content closer to users. The setup reduces buffering and improves streaming quality, but it does not solve the broader commercial and payment issues that remain.

Frehiwot said the main obstacle is Netflix’s current business model, which she said does not yet support full service provision in Ethiopia. The company did not provide details on the exact nature of the commercial barriers, but said discussions are continuing.

The challenge reflects wider difficulties faced by global streaming platforms across Africa, where limited broadband access, high data prices and payment system constraints often slow market entry. In several countries, streaming companies have had to rely on bundle partnerships or telecom-led distribution models to reach customers more effectively.

Ethio telecom said it has continued investing heavily in network expansion to support Ethiopia’s growing digital demand. The company reported that its total international internet gateway capacity has reached 4.3 terabits per second, supported by upgrades in transmission and content delivery infrastructure.

Frehiwot said local content delivery network capacity increased by 820 gigabits per second through five CDN partners, reaching 2,062 gigabits per second. International gateway capacity also rose by 750 gigabits per second to 2,040 gigabits per second. According to the company, these investments are aimed at reducing latency, improving resilience and supporting rising internet traffic nationwide.

Ethio telecom also reported strong financial and operational performance for the fiscal year. The company said it achieved 99.7 percent of its annual plan and generated total revenue of 215.8 billion birr.

Its customer base grew by 8.3 percent to 90.12 million, while active mobile subscribers reached 72.09 million. Mobile data and internet users climbed to 51.53 million, and fixed broadband subscribers reached 1 million.

During the year, the company built 603 new mobile stations, bringing the total to 10,613. It said 4G population coverage reached 82.23 percent and 5G service became available in 33 cities.

Ethio telecom added 793 kilometers of backbone fiber, expanding its total network to 23,442.1 kilometers, and connected 841 mobile stations with fiber. The company also said it created 5 megawatts of operational capacity across six Tier III data centers in Addis Ababa and regional cities.