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THE CURRENT STATUS OF ICT IN ETHIOPIA 1 Overview An ICT policy should start with an assessment of the country’s current ICT situation. ICT in Ethiopia at present is at the very early stage of development. Nearly the entire rural population lacks telecommunications infrastructure. The vast majority of the population is dependent only on the conventional and traditional information delivery system, the radio or newspapers. Other major indicators pointing to the low level of ICT development in the country are: • Limitations in telecommunications network, which is mainly designed for voice grade communication, and limited numbers of both fixed and mobile telephones. • Lack of skilled human resources coupled with low ICT literacy. • Low level of Internet service and poor connectivity. • Underdeveloped physical and telecommunications infrastructure. • Underdeveloped market for computer hard- and software products aggravated by high cost of acquisition. • Lack of organized data and information resources, and poor accessibility to those that exist. • Limited or no public awareness on the role and potential of ICT. • Undeveloped private sector • Legal and regulatory constraints. Not only is ICT least developed in Ethiopia; it is also highly skewed towards major cities and towns, particularly Addis Ababa. In part, this is due to limitations in both physical and ICT infrastructure, and partly due to the limited number of computers. Consequently, while the Internet and other forms of information and communications technology are readily available in Addis Ababa, limited access to ICT by the rural population continues to be a major impediment to the use of ICT nation-wide. These constraints present the Government with real challenges, but also opportunities, for an accelerated development of ICT in Ethiopia. 2 Government Efforts Even though still in its infancy, ICT in Ethiopia has developed rapidly in recent years. In part this is because, in recognition of the vital importance of ICT in the development process, the Government has been undertaking several strategic policy initiatives that promote its development. Initiatives taken by the Government to 8 promote the development of ICT include the relevant components of PSCAP, in particular ICT capacity building, Electronic government (woreda-net) and Electronic education (school-net) programs. The development of ICT in Ethiopia has also been influenced by legal and regulatory measures. These include the 1996 proclamation providing for the introduction of competition and licensing for multiple operators. The private sector has since been active in providing ICT and related goods and services, and several firms provide computer hard- and soft-ware and services at present. Consistent with its policy objectives, the Government has been licensing large numbers of private sector operators to set up cyber-cafes and to engage in sales, installation and service of communications equipment. Although the private sector is expected to take the lead in ICT development, it has so far remained largely undeveloped with operations confined to major urban centers, particularly Addis Ababa, with limited or no activities in the rural areas of the country. Reform of Ethiopia’s telecommunications industry also resulted in the establishment of the Ethiopian Telecommunications Corporation, a public telecom operator providing services in fixed, mobile, Internet and data communications. The establishment of the Corporation was followed by the introduction of Internet service in 1997 and mobile telephone service in 1998. The Corporation has been aggressively expanding rural connectivity in tandem with the Government’s decentralization, public and civil reform programs. The Government’s commitment to the development of ICT is also reflected in rising public expenditure in the sector. Public investment in ICT infrastructure and services increased substantially from a paltry US$29 million in 2002 to US$300 million in 2004. Increases in investment have resulted in improvements in ICT infrastructure and services nation-wide both in the public and private sectors. Technologies and services that have particularly experienced expansion include telephone infrastructure and services, mobile/cellular telephone, mobile radio communication, pay-phones, the Internet, Internet cafe services and community centers, which provide a broad range of multi-purpose communication services such as the telephone, fax, computer, e-mail and media services. Even though recent trends in the development of ICT have shown dynamic growth in both infrastructure and services, ICT in Ethiopia still remains the least developed as compared to countries in sub-Saharan Africa and elsewhere in the world. Proper data communication network is only beginning to make its appearance, the number of computers remains negligible, and the availability of computer hard- and soft-ware products limited. It is clear, therefore, that much remains to be done, and the Government is determined to step up efforts for the development of ICT in the interests of sustainable growth and poverty reduction, as well as for deepening the process of democratization and good governance. The Government is already taking aggressive measures towards this end and has embarked on programs aimed at improving and expanding physical and ICT infrastructure and services as the backbone for the development of a robust ICT sector in the country.