Ethiopia signed an US$800 million contract with ZTE, a Chinese multinational telecommunications equipment and systems company headquartered in Shenzhen, China. The agreement was signed on Sunday, August 18, 2013 to expand Ethiopia's mobile phone infrastructure and introduce a high-speed 4G broadband network in the capital Addis Ababa and a 3G service throughout the rest of the country.

The latest agreement with ZTE is part of a US$1.6 billion project divided between ZTE and Huawei Technologies Co Ltd,, another Chinese telecom equipment maker. Huawei signed the agreement last month.

Both ZTE and Huawei will provide low interest loans to Ethiopia through an arrangement known as vendor financing, according to Ethiopian officials and both companies.

Andualem Admassie, acting chief executive officer of state-run Ethio Telecom, said the agreement would enable Ethiopia to double subscribers to more than 50 million.

"The expansion is vital to attain Ethio Telecom's objective of increasing telecom service access and coverage across the nation, as well as to upgrade existing network to new technology," he said in a speech.

Ethio Telecom is the only mobile operator in Ethiopia with a population of more than 80 million.

Source: Reuters