The Ethio Telecom has signed a major network expansion and modernization agreement with its long-time technology partner Ericsson, a move expected to significantly expand mobile connectivity and digital services across Ethiopia.
The agreement was signed on the sidelines of the Mobile World Congress 2026 in Barcelona, and forms part of Ethio Telecom’s broader efforts to strengthen infrastructure and support the country’s digital transformation.
According to the companies, the partnership will focus on upgrading existing mobile infrastructure and expanding network capacity to improve service quality and extend coverage, particularly in underserved areas.
The project is a key component of Ethio Telecom’s three-year “Next Horizon” strategy, which aims to reposition the state-owned operator as a modern digital services provider.
Under the agreement, Ericsson will modernize 1,500 mobile network sites within the areas it manages. The upgrade is expected to increase 4G capacity while also expanding access to 5G services, particularly in urban centers.
In the Ericsson-managed network zone, the modernization will create capacity for 2.8 million additional 4G users, raising total capacity in the area to around 4.1 million subscribers.
The project is also expected to significantly improve network reach. Officials say population coverage in the targeted region will increase by 45 percent, bringing overall accessibility to about 85 percent.
As part of the expansion, LTE services will be extended to 157 additional towns, raising the total number of towns connected through the upgraded network to 276.
While the rollout of 5G technology in major cities has attracted considerable attention, both companies say the agreement places strong emphasis on expanding connectivity in rural areas.
The initiative includes tailored mobile solutions for 75 rural localities, where network coverage and digital services have historically been limited.
Officials say improving connectivity in these areas is expected to support digital inclusion and enable broader access to mobile financial services, online education, and other digital platforms as Ethiopia works to accelerate its transition toward a digital economy.
