Ethiopia's state-owned Ethio Telecom said on Thursday it had selected Huawei Technologies Co Ltd, a Chinese telecom equipment manufacturer, to upgrade Addis Ababa's network infrastructure to a high-speed 4G network, Reuters reported.

The upgrade is part of a US$1.6 billion contract concluded in July and August between Ethio Telecom, Huawei and ZTE Corp., China's biggest telecom equipment makers, to expand mobile phone network throughout Ethiopia.

"In terms of allocation, Huawei will be responsible for the expansion of 4G in Addis Ababa, including other mobile services - the 2G, 3G, IP and the like," Abdurahim Ahmed, Ethio Telecom's head of communications, told Reuters.

The two companies will divide their work along 13 expansion areas. The allocation plan was concluded on Wednesday, according to Abdurahim.

"It is expected to benefit more than 400,000 subscribers. Within an eight-month period, the expansion project of Addis Ababa, including 4G, will be completed."

Ethio Telecom awarded the contracts under a 13-year period loan package to be paid with an interest rate of "less than 1 percent", Abdurahim said.

Source: Reuters