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Ethiopia signs $700 mn mobile network deal with China's Huawei

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07/25/13

  07:37:36 pm, by admin, 334 words  
Categories: ICT

Ethiopia signs $700 mn mobile network deal with China's Huawei

Ethiopia signs $700 mn mobile network deal with China's Huawei

Ethiopia signs $700 mn mobile network deal with China's Huawei

Reuters

ADDIS ABABA: Ethiopia on Thursday signed a $700 million agreement with China's Huawei Technologies Co Ltd to expand mobile phone infrastructure and introduce high-speed 4G broadband network in the capital Addis Ababa and 3G service throughout the country.

Huawei, the world's second largest telecom equipment maker, has been involved in developing phone and internet services in the Horn of Africa country for several years.

Africa's rapidly expanding telecoms industry has come to symbolize its economic growth, with subscribers across the continent totalling almost 650 million last year, up from just 25 million in 2001, according to the World Bank.

Andualem Admassie, acting chief executive officer of state-run Ethio Telecom, and Jony Duon, his counterpart at the Chinese firm, signed the agreement that will double subscribers to 56 million.

"Although our target is 40 million, now including 3G it will 56 million by 2015. That would be the capacity," said Debretsion Gebremichael, Ethiopia's deputy prime minister and minister of communications and technology.

The agreement is half of a $1.6 billion project split between Huawei and ZTE, China's second-largest telecoms equipment maker. Both firms will finance the amount. Ethiopia will sign the other half of the agreement next week, Debretsion said.

Ethio Telecom is the only mobile operator in the country of more than 80 million people, one of the last remaining countries on the continent to maintain a state monopoly in telecoms.

Although lacking much of a telecoms industry, the government last year gave approval for private companies to provide value-added services - all services other than standard voice calls.

Ethiopia's ministry of communications and information technology says it has received applications from 218 firms to provide such services. South Africa's MTN Group, Africa's largest mobile phone company, has already been granted a licence.

The government has ruled out liberalising its telecom sector saying the six billion birr ($321 million) it generates each year is being spent on railway projects. Ethiopia plans to build 5,000 km of railway lines by 2020.

Tags: ict, telecom

6 comments

Comment from: Gecho [Visitor]
Gecho

Accountability for past failures should come first. Every one who uses the services of Ethio Telecom knows how pitiful they are. In addition to the huge amount of money already spent directly on the projects many institutions, businesses, and individuals are losing untold amount of money due to random service disruptions.

There must be some remedy before embarking on such mega projects. Just because it is financed with loans we shouldn’t plow through yet another desperate attempt to meet some subscriber statistics goal. What is the point of having 56 million subscribers when even a fraction of them are not getting reliable service?

Surely all big shots must know of the state of telecom services in Ethiopia. Why are they not doing something drastic that is proportional to the huge challenges?
How do you explain to the future generations the huge debt they are left to service? Believe me they will be more conscious and assertive than the present day docile Ethiopians who just silently take so much abuse.

07/26/13 @ 01:31
Comment from: mesfin_b [Member]  
mesfin_b

:):):):)
There goes the extension of the “Loan chain” which ties our nation to the point of “chocking” Ethiopians exisctence.
The other way of looking at this is when the couffers of the TPLF looting shiftas is bulging with the steal:):):)

07/26/13 @ 13:05
Comment from: Axumawit [Visitor]
Axumawit

Ethiopia set to benefit from Japan’s 32 billion USD aid package for Africa

Friday, 26 July 2013

Ethiopia is designing and preparing various projects to benefit from the 32 billion USD aid package which Japan has pledged to assist in the economic development of Africa.

This was revealed at the 11th Ethiopia-Japan annual bilateral policy meeting held here Thursday. Japan, at the 5th Tokyo International Conference on African Development (TICADV) held in the Japabese capital earlier this year, announced the 32 billion USD aid over the next five years.

Trade, private sector investment, infrastructure, agriculture, food security, environmental protection, education, water and sanitation are among the areas in which Japan intends to support the continent’s development.

The 11th Bilateral Meeting here focused on strategies which were outlined in the TICAD meeting. Currently, Japan is offering an annual 100 million USD economic assistance package to Ethiopia and it is also helping it in drawing on the industrial development experience of the Far East, said Amhed Shide, the State Minister of Finance and Economic Development.
Africa investor,friday 26,2013

This is good news for Ethiopia.It is well known that the country works hard to push Asians invest in Africa.Ethiopia is a gate way to Africa.Africans approve her leadership role.

07/26/13 @ 20:52
Comment from: challenger [Visitor]
challenger

Calm down Gecho. Don’t harm your health losing your mind over your inevitable irrelevance. The dam will be built and the phone network will be expanded. You can no longer keep the country in the stone ages so you could hide your uncle’s failures of 2 millinia. Ethiopia has been freed from the primitive, savage, and backward system of the Ankoberiets. Never again!!!

07/27/13 @ 08:29
Comment from: Carlos Danger [Visitor]
Carlos Danger

Gecho

Africa is connected to the world with cell phone.Ethiopia is the only country who is behind in this field.Providing 40 mil.people with cell phone is a big revolution in itself.I don`t know in what mind you reject this move.I guess this what they call it an Ethiopian opposition.

07/27/13 @ 10:30
Comment from: Seattle [Visitor]
Seattle

The last cycle of Billion dollar contracts with the Chinese didn’t bring any changes to the dilapidated telecom sector in Ethiopia. I doubt this will be any different than others
So how much of the money will be used to bring spying equipment to the Country.

07/27/13 @ 17:33

rebtel

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