Ethiopia’s telecom monopole, Ethio Telecom, is set to conclude telecom infrastructure expansion agreements with Ericsson, which will be taking USD 800 Million prior deal the Ethiopian company had with ZTE Corp.

Back in 2013 ZTE, with Huawei Technologies Co Ltd, concluded a USD 1.6 Billion with Ethio Telecom for the purpose of doubling mobile subscribers.

Nonetheless, ZTE and Ethio Telecom differed over the cost of upgrading the existing network. ZTE claimed the upgrade work will cost the telecom company an additional USD 150 Million to USD 200 Million while the latter expected the task to be carried out at no extra charge.

Andualem Admassie, Ethio Telecom’s Chief Executive, said; "Ericsson will start working on that share of expansion work". "We are only waiting for confirmation from the (Ethio Telecom) board." Nonetheless, he refrained from stating the value of the deal.

He affirmed Huawei will continue with its role and that ZTE will still be involved with some work. "ZTE have lost parts of their share but have made it clear they are willing to resume work, no matter what the current circumstances."

The purpose of the deal is to take mobile subscribers number to 50 Million by next year, which actually is double of the current number. In addition to this it aims at expanding 3G service.

The deal also includes a plan for Huawei to launch a high-speed 4G network in Addis Ababa.

Source: Reuters