Global Journal of Interdisciplinary Social Sciences
Open Access

ISSN: 2319-8834


Analysis of Account Receivables and Payment defaults in Ethio Telecom with reference to Mekelle Branch, Ethiopia


The starting period of the Telecommunication Industry in Ethiopia goes back to the reign of Emperor Menilik in 1894, during the construction of the capital city, Addis Ababa. This was followed by the Inter urban network construction to connect many important centre of the empire by 1930. Ethiopian telecommunication joined ITU (International Telecommunication Union) in 1932 and was showing good progress in the area until the Italian Acceptation. During 1932 – 1942 the network was seriously damaged because of the consecutive wars. Currently, the state monopolyTelecommunication service provider in Ethiopia, Ethiopian TelecommunicationsCorporations re-born on December2, 2010 as Ethio-Telecom after France Telecom takes themanagement contract. The company maintains proper records of the receivables by strictly following the credit policies. It grants a total of 45 days credit to the subscribers. The credit payment system is mainly allowed to Government Organizations and NGOs.