ETC to undertake USD 40 mln mobile expansion

Launches SMS service

By Groum Abate

Management of the Ethiopian Telecommunication Corporation (ETC) is working on a proposal for the expansion of the country’s existing mobile system. Sources disclosed to Capital that the management of ETC is ready to present to the Board of the corporation a proposal that would increase the mobile telephone service capacity by twofold, or an additional 300,000 mobile lines. This is expected to cost the state owned ETC an estimated of 40 million USD.
After getting approval from the board headed by Minister Getachew Belay, ETC would float an international tender.
It is to be recalled that ETC’s first nationwide mobile telephony project bid was awarded to the Chinese telecom company ZTE for a 29 million Dollars amidst controversy surrounding the selection process. ZTE is currently expanding the existing mobile capacity to 200,000 lines including the expansion of mobile capacity to 12 major regional towns.
After the completion of the project by April of 2004, customers in Bahir Dar, Mekelle, Jimma, Harar, Dessie, Zeway, Gondar, Awassa, Assosa, Dire Dawa, Shashemene and Nekemt will be introduced to mobile telephony.
The expansion project will be underway in three phases; first increasing the mobile capacity of the capital city that started with 36,000 lines by 45,000 and then moving to the regional towns.
90% of the new lines are expected to be prepaid.
In related development the Ethiopian Telecommunication Corporation (ETC) has started Short Messaging Service (SMS) on September 11. The corporation sent New Year greetings to its mobile customers on the Ethiopian New Year’s Eve.
The SMS is launched in partnership with Irridium, an American based telecom firm.