
Ethio Telecom is negotiating with Netflix to address business model and payment challenges that currently prevent the streaming service from launching fully in Ethiopia, despite the presence of local cache servers.
Ethio Telecom is currently engaged in discussions with Netflix to resolve commercial and operational barriers that have stalled the full launch of the streaming platform in Ethiopia. While Netflix has already established cache servers within the state-owned operator's network, these technical arrangements have yet to result in a fully functional commercial service for local users.
During the company's 2025/26 fiscal year performance report, Ethio Telecom CEO Frehiwot Tamiru confirmed that negotiations are ongoing. She noted that the initial integration of Netflix’s servers, part of the company's Open Connect network, was a multi-year process hindered by historical infrastructure limitations and initial skepticism from Netflix regarding the size of the Ethiopian market.
The current impasse centers on Netflix’s business model and payment system requirements, which do not yet align with the local market environment. While the existing caching system successfully reduces buffering and improves content delivery quality for users, it remains limited in scope.
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Infrastructure Expansion and Performance
The negotiations coincide with a period of significant growth for Ethio Telecom. In its latest fiscal report, the company announced total revenue of 215.8 billion birr, achieving 99.7 percent of its annual target. The operator’s network footprint continues to expand, now supporting 51.53 million mobile data and internet users.
Key infrastructure metrics reported by Ethio Telecom include:
Market Context
The difficulty in bringing global streaming services to Ethiopia mirrors broader challenges across Africa, where high data costs, limited broadband penetration, and complex payment integration often impede market entry. For many global platforms, successful expansion in the region has required collaborative distribution models or partnerships with local telecommunications providers to overcome these structural hurdles.
Ethio Telecom has not provided a timeline for when these commercial discussions might conclude, but the continued investment in high-capacity data centers and fiber infrastructure signals the company's intent to position its network as a primary hub for digital content delivery in the country.
Source: Capital
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