The chief executive of the state-owned Ethio telecom says unsuitable land acquisition procedures, particularly in the country’s urban centers, are the primary obstacle to the operator’s infrastructure expansion plans.

CEO Frehiwot Tamiru addressed the comments to the parliamentary committee for Public Enterprises and Institutions Affairs this week, which conducted a review of Ethio telecom and the Ethiopian Telecommunications Authority this week.

MPs criticized the operator for unreliable telecom services, the absence of telecom products and services in rural areas, and the unaffordability of its products.

Frehiwot outlined challenges hindering the state-owned enterprise, including land acquisition, security concerns, financial constraints, inaccessible roads, lack of commercial electricity, vandalism, and fraud. However, she emphasized difficulties in obtaining land and excessive compensation demands—especially in urban centers—as the most significant hurdles.

“Addis Ababa is the most challenging city for tower installation compared to rural areas, which fare better in this regard,” Frehiwot said.

She urged the committee to address the issue and advocate for more feasible land policies.

Parliamentarians also voiced concerns about telecom service gaps in the Amhara, Oromia, Benishangul-Gumuz and Southern regions. Frehiwot explained that these gaps are often linked to a lack of suitable land for infrastructure and a lack of road access coupled with financial challenges

Balcha Reba, director-general of the Ethiopian Communication Authority, backed Ethio telecom’s concerns, urging MPs to engage with their constituencies to facilitate land allocation for telecom development.

The Director-General also revealed that the Authority is drafting a law to regulate land and building usage for telecom infrastructure. This legislation, currently under discussion, aims to streamline land acquisition and address lease complications for existing infrastructure.

“If payments for land acquisition become necessary, we ask for your support to ensure the telecom sector can continue to grow,” Balcha told MPs.

Ethio telecom, which serves nearly 81 million customers—including 78 million mobile subscribers—plans to invest USD 1.1 billion in major infrastructure expansion in the current Ethiopia fiscal year, according to the CEO.

Frehiwot responded to complaints from MPs about internet and phone blackouts in conflict zones by saying the issue does not fall under her mandate as the CEO of a state enterprise.