Ethio Telecom and Netflix are continuing discussions on the commercial model and market challenges that have so far delayed the full rollout of Netflix’s streaming service in Ethiopia.
Ethio Telecom CEO Frehiwot Tamiru said the two companies are currently working through business and market-related issues that need to be resolved before Netflix can launch a fully commercial service in the Ethiopian market. Netflix already operates cache servers, as part of its Open Connect content delivery network, within Ethio Telecom’s network in Ethiopia.
The infrastructure allows popular Netflix content to be stored closer to users, helping improve streaming performance, reduce latency and limit buffering. However, the presence of the servers has not yet resulted in a complete commercial Netflix service in the country.
The deployment of Netflix’s servers followed years of discussions, with infrastructure limitations and concerns over the size of Ethiopia’s potential user base contributing to the lengthy negotiations. Netflix had initially questioned whether the number of potential local subscribers would justify the investment required to enter the market.
The remaining challenges are understood to include Netflix’s business model, commercial arrangements and payment-related issues. Similar obstacles have affected the expansion of international streaming platforms across several African markets, where limited broadband access, high data costs and payment infrastructure can present barriers to wider adoption.
Ethio Telecom has not disclosed specific details about the outstanding commercial issues being discussed with Netflix. Meanwhile, Ethio Telecom continues to expand its network capacity and digital infrastructure to support growing demand for online services.
The company’s international internet gateway capacity has reached 4.3 Tbps, while its local content delivery network capacity has also recorded significant growth.
The telecom operator is further expanding its fiber network and mobile infrastructure, with 4G coverage reaching 82% of the population. Its 5G network is now available in 33 cities, strengthening connectivity and creating greater capacity for data-intensive digital services such as video streaming.
The ongoing discussions with Netflix come as Ethiopia’s digital ecosystem continues to develop, with improved connectivity and network capacity potentially creating new opportunities for global streaming and digital entertainment platforms in the market.
