In the midst of an increasing network failure that come as a huge disappointment to its customers, Ethiopian telecom has signed a $ 1.6 billion 4G and 3G deal the two Chinese giant telecom companies Huawei and ZTE yesterday here in Addis Ababa.

According to the deal Huawei and ZTE will assist in expanding mobile phone infrastructure and introduce 4G broadband network in the capital Addis Ababa and 3G service throughout the country over the next two years. The deal is said to boost the number of mobile subscribers to 50 million when completed, and will increase the network coverage to 85%.

Ethiopia has aimed to reach 40 million mobile phone subscribers by the end of the Growth and Transformation Plan (GTP) which is by 2015. “Though our target is 40 million, now including the 3G it will be 56 million by 2015,” said Debretsion Gebremichael, Ethiopia’s deputy prime minister and minister of communications and technology during the ceremony.

According to the World Bank, Africa has 650 million mobile subscribers in 2012, a number which was just 25 million ten years ago.

 

 

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