Telecom Rewards Employees with Mobile Phones

The reward cost the enterprise 100.5 million Br

Ethio telecom, the state monopoly telecom provider, rewarded its 15,000 permanent employees by giving them mobile phones at a cost of 100.5 million Br

The company provided its employees with the choice of two models of Lenovo brand phones, Phab two and Lenovo Phab two plus. The company spent 6,700 Br on each phone.

“The procurement was made through a tender process,” said Abdurahim Ahmed, corporate communications officer of Ethio telecom.

The company rewards its employees every other year, and the reward package is only for permanent employees of the company. Contract employees, even those who served the company for years, are not included in the reward package.

The reward aims at benefiting its employees for the services they render, according to Abdurahim.

Gashaw Kifle, an employee of Ethio’s Saris branch, was one of the beneficiaries of the program.

“Last time I received a Samsung Galaxy phone,” he told Fortune.

Ethio telecom is on the road to an expansion plan to double the capacity and improve the quality of its services. The company was established in 1941 as Telephone, Telegraph & Postal Services Agency. It was re-established as the Imperial Board of Telecommunications in 1952 and the Ethiopian Telecommunication Corporation in 1996. The enterprise gained its current name and structure in 2010, aiming to transform the telecommunication infrastructure and services of the nation.

During the first three quarters of the past fiscal year, the company grossed 27.7 billion Br in revenue from all its service, of which 75pc was generated from cellular services. The report also shows that the company introduced 19 types of new products and services during the same period. Its clients reached 66.2 million, a 17pc increase compared to the fiscal year two years ago.

The company is one of the big four state companies slated for partial privatisation that include Ethiopian Airlines, Ethiopian Power, and the Ethiopian Shipping & Logistics Services Enterprise.  Ethio telecom’s management has identified four large global accounting and consulting firms – Deloitte, KPMG, Ernst & Young and PricewaterhouseCoopers – to participate in a bidding process to implement an evaluation of its assets.

Ethio telecom, which generates a large revenue for the national coffers, has recently announced tariff cuts in the range of 30pc to 54pc on most of its services.

Worku Mekonnen (PhD), associate professor of human resource management at the college of business and economics of Addis Abeba University for more than two decades, sees the company’s move to incentivise its employees as a positive step. But he believes that undertaking a universal reward system does not bring motivation and competence to its employees.

“The management should work on a reward mechanism that identifies and selects the best performing employees to receive rewards,” he said. “This will bring a sense of competition for a better outcome.”


Published on Aug 26,2018 [ Vol 19 ,No 957]



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