Ethio Telecom announced the signing of a major network expansion and modernization agreement with telecommunications equipment provider Ericsson at the Mobile World Congress Barcelona, marking another step in Ethiopia’s effort to strengthen its digital infrastructure.

The agreement aligns with Ethio Telecom’s three-year Next Horizon Strategy and will involve expanding, upgrading, and deploying new network capabilities across 1,500 mobile sites within Ericsson’s managed network circle. The project includes 4G layering and broader infrastructure upgrades aimed at improving network coverage, service quality, and capacity.

As part of the modernization initiative, legacy systems will be replaced with advanced telecommunications technology, significantly boosting 4G capacity while also expanding the country’s 5G network footprint. The upgrades are expected to support faster connectivity and increased data demand as Ethiopia’s digital economy continues to grow.

The agreement also places a strong emphasis on digital inclusion, particularly in underserved rural areas. The project will deploy 75 rural solution sites designed to provide connectivity in locations without access to commercial power. In addition, 502 existing 3G sites will be modernized and upgraded to become fully 4G-ready, improving service availability in previously underdeveloped regions.

Within the Ericsson-managed network area, the project will add 2.8 million in new 4G capacity, raising the total to 4.1 million connections. LTE services will also expand to 157 additional towns, increasing the number of connected towns to 276. Population coverage in the region is expected to grow by 45 percent, reaching approximately 85 percent coverage.

The expanded infrastructure is expected to strengthen Ethiopia’s growing digital ecosystem, supporting national platforms such as telebirr, ZemenGebeya, and Znexus, which are increasingly shaping how Ethiopians conduct payments, commerce, and digital services.

Ethio Telecom said the partnership underscores its continued commitment to investing in advanced technologies and strategic collaborations to position Ethiopia as an emerging digital hub in Africa.