The Study on Telecommunications Development Plan Ethiopia

The Study on Telecommunications Development Plan Ethiopia

The Study on Telecommunications Development Plan Ethiopia
1.1 General
This Report presents a Master Plan for nationwide telecommunications development up to the year
2020, formulated based on the results of the first study conducted in the Federal Democratic
Republic of Ethiopia (hereinafter referred to as “Ethiopia”) and in Japan.
This first study has been carried out in accordance with the work plan and schedule of the study,
which were discussed and agreed upon between Ethiopian Telecommunications Corporation
(hereinafter referred to as “ETC”) and Japan International Cooperation Agency (hereinafter referred
to as “JICA”) on July 22, 2002.
1.2 Background of the Study
Ethiopia is a land locked country having an area of 1,100 square kilometers, and its population stood
at 62 million in mid 1999.
As of Dec 2001, the total number of installed telephone exchange lines was 554,000 out of which the
number of connected lines was 319,000, with most of them being concentrated in major cities.
At present, the average telephone density is 0.5 per 100 inhabitants, with only 0.07 per hundred
inhabitants distributed in the rural areas. The telephone density in Ethiopia is low, even compared
with neighboring countries.
Some of the switching equipment was installed more than 20 years ago and the other facilities, such
as outside plants, transmission systems, and power supply systems were also constructed almost in
the same era and are too old to be operated.
In 1995, the Ethiopian government placed a higher priority on the telecommunications development
in the first 5-Year National Economic Development Plan. The ETC formulated the Seventh 5-Year
Telecommunications Development Plan and intended to increase the telephone density to 1.28 per
100 inhabitants by the Year 2002, with the assistance of the AfDB, EIB, etc. besides its own funds.
In the year 2000, the ETC had already formulated the Eighth 5-Year Telecommunications
Development Plan in conformity with the Second 5-Year National Economic Development Plan.
In view of the above, in 2001, the Government of Ethiopia requested the Japanese Government to
provide technical assistance for a study on the telecommunications development plan. In response to
this request, the Government of Japan decided to dispatch a JICA study team (hereinafter referred to
as “Study Team”) for execution of the study.
1.3 Objectives and Scope of the Study
1.3.1 Objectives of the Study
The objectives of the study are:
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1) To formulate a Master Plan for telecommunications development in Ethiopia up to the year
2020/21 (Phase-I Study);
2) To conduct a feasibility study on priority projects identified in the Master Plan (Phase-II
Study); and
3) To pursue technology transfer to the counterpart personnel in the course of the Study.
1.3.2 Study Area
The study covers the whole of Ethiopia.
1.3.3 Scope of the Study
In order to achieve the objectives mentioned above, the Scope of Work for the study covers the
following items:
【Phase-I: Master Plan】
(1) Collection, Review and Analysis of Related Data and Information
1) Social and economic conditions and statistics
2) Existing telecommunications facilities
3) Data on living conditions
4) On-going and planned projects relevant to the study
5) Laws, regulations, policies on telecommunications
6) Other relevant data and information
(2) Field Survey
General telecommunications conditions in Addis Ababa and other local area
(3) Identification of the Existing Facilities and Equipment Concerned with
Telecommunications Development
(4) Analysis of Existing Telecommunications Development Plan, Telecommunications Service
and Extraction of Current Problems
1) Management and financial situation
2) Organization and institution
3) Human resource
4) Telecommunications network
5) Forecast of socio-economic changes and future demand for telecommunications services
(5) Formulation of the Master plan
1) Telecommunications network plan
2) Telecommunications service improvement plan
3) Operation and maintenance
4) Facilities and equipment
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5) New services strategic plan
6) Plan for organization and institutional aspects
7) Human resource development plan
8) Cost estimation
9) Financial plan
10) Project evaluation (financial evaluation, organizational and institutional evaluation, technical
evaluation, socio-economic evaluation)
11) Selection of priority project (s)
12) Spectrum management
13) Management to telecommunications
14) Phased implementation plan (year 2005, year 2010, and year 2020)
15) List of priority projects
16) Recommendations and measures for implementation of master plan
【Phase-II: Feasibility Study】
1) Confirmation of the conditionality to carry out feasibility study
2) Supplemental data collection and analysis
3) Supplemental field survey
4) Preliminary design of facilities and equipment
5) Construction plan
6) Maintenance and operation plan
7) Cost estimation
8) Financial plan
9) Human resource development plan
10) Organizational and institutional development plan
11) Project (s) implementation program
12) Project evaluation
13) Rural Telecommunications development
14) Implementation of technology transfer seminar
1.4 Policy Framework of the Study
The Team performed its study under the following basic policies in accordance with the Scope of
Work outlined for the Study, mutually agreed upon between ETC and JICA on July 4, 2001.
The Ethiopian Telecommunication Corporation (ETC) is a monopoly on telecom services in
Ethiopia. Private sector participation is expected in the near future, but only a part of ETC’s capital
will be made open to strategic partners. Globally, network expansion strategy is shifting from the
traditional wire line to mobile due to declining investment cost of network deployment, shorter
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period of construction and perceived value of mobility. The Master Plan (hereinafter referred to as
“M/P”) under the study therefore proposes a strategic scenario of a national network expansion plan,
upon deliberation with counterpart, and considering the characteristics of mobile communication
The Team proposes the plan by giving careful consideration to the above mentioned network
development trends and the continuation of a monopoly after equity partner’s participation. The
scenario for participation of the private sector in the telecommunications industry is included in the
M/P, which includes network planning, based on new technologies, new service development plan, a
facility expansion plan, an operation & maintenance service improvement plan, an organization
management plan, standardization of technical criteria, an financial plan and spectrum (frequency)
management plan.
The role of private investors and services shall be defined by the government in advance, as a part of
the preparation work to facilitate private sector participation. The preparation shall be preceded for
business regulations, tariff systems, and standardization of technical criterion .
1.4.1 Policy Framework of the Master Plan
1)To respect the society and the regional characteristics in Ethiopia
2) To develop a M/P that addresses both the economic and the social needs of Ethiopia with
the prospect of change in social and economic situation, technical innovation and players
in the telecom sector and addresses network development approach based on new
technologies as opposed to the traditional ordinary fixed telephone system.
3) To propose an improvement plan if any, by reviewing the current 5-Year National
Telecommunications Sector Development Plan and the Eightg Telecommunication
Development Plan of ETC.
4) To include minimization of the “Digital Divide” in the M/P as one of the targets with the
aim of ranking higher in the following:
a) The promotion of Ethiopian economic development
b) Minimization of regional differences in Ethiopia
5) To clarify the role of the government and the private sector in the telecommunication
sector of Ethiopia.
6) To absorve waiting applicants by improving customer services as one of the important
targets of the M/P.
7) To study “Cross Subsidies” between urban areas where high profitability is expected and
the rural/remote areas, where less is feared.
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8) To study a scenario necessary for minimizing no-telephone areas and to plan to spread the
Public Telecommunication Service Network in rural areas.
9) To decide the telecommunication network plan and the facility plan taking into account the
ICT service development scenario in Ethiopia and the implementation plan as well, for the
short, middle and long term.
10)To propose a scenario for introduction of a development plan for new technology and
services to meet the need of Ethiopian economic development.
11)To propose ICT service related telecommunications technology and human resource
training programs for ETC’s management.
12)To decide an improvement plan for operation and maintenance to realize effective business
operations, together with standardized data formats to be used by in various divisions in
13)To plan a business-evaluation tool using a Balance Score Card and reflect it in the
organization management plan, financial plan, etc.
14)To prepare a priority list of higher priority projects selected, out of projects of various
priorities as envisaged by ETC, in colaboration with ETC, by the end of February, 2002
1.4.2 Policy Framework of the Feasibility Study
1) To select a few projects for the Feasibility Study (hereinafter referred to as “F/S”) out of
pre-selected priority projects, through discussion with ETC and the Team, based on clearly
defined selection criteria, such as urgency, social needs, effects of project implementation,
available fund/budget and available time/man-power.
2) The F/S shall be performed in the same level of B/D (Basic Design) Study and to prepare
project implementation program including budgetary cost estimates, Bill of Quantity,
project description, technical specifications, etc.
3) To state necessary organizational arrangement for ETC, in the project implementation
schedule in order to secure the prospective effects obtained through the implementation of
F/S project.
4) To prepare Project Design Matrix for each F/S project in order to share the outline of the
Project among the persons concerned.
5) To finalize the demands of the F/S project by cross-checking the results of a study on the
macroscopic demands of the M/P plan and the result of the microscopic demands of the F/S
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1.4.3 Policy Framework for the Technology Transfer
To correspond to high demands of technology transfer to the Ethiopian side, i) A Technology
Transfer Seminar for explanation of Draft Final Report, ii) Workshops and iii) On the Job Training
(OJT) through joint implementation of the Study by the Team and Ethiopian Counterparts will be
implemented during the course of the Study.
In the Technology Transfer Seminar, i) methods applied during the Study, ii) criteria adopted in the
Study, iii) outline of the M/P, iv) processes applied in the selection of priority project(s) and v)
outline of the F/S will be presented not only by the Team but also by Ethiopian counterparts. The
Team proposes participation of around 50 people not only from ETA and ETC, but also from various
organizations such as Ministry of Finance and Economic Development and the Ministry of
Infrastructure that are related to telecommunications.
Workshops would be held once a month during the study period in Ethiopia. In the workshops
presentations on specific topics, as proposed in the table below, will be made not only by members of
the Team but also by Ethiopian counterparts. After presentation of each topic, discussions on
problems in the sector and on implementation of the Study among participants will be made for an
exchange of opinions and information. The purposes of these workshops include not only
technology transfer but also close participation in the Study by Ethiopian counterparts.
Director-level managers will be invited to the workshops to give their opinions and policy advices on
the Study
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Table 1.4-1 Workshop Schedule
No. Topic Time
1 Study Team: Methodology for Demand Forecast Late Dec. 2001
Study Team: Methodology for Traffic Projection
Study Team: New Technology and Network
Study Team: PCM Workshop
Ethiopian Side: Current Conditions on Customer Services and Tariff System
Late Jan. 2002
Study Team: Criteria and Targets applied in the Study, Economic and
Financial Analysis
Ethiopian Side: Current Conditions on Introduction of New Technology and
Ethiopian Side: Policies on Improvement and Expansion of the Services
Late Aug. 2002
4 Study Team: Process employed for the F/S
Ethiopian Side: Constraints for the Implementation of Priority Project(s)
Study Team: Results and Process of the F/S
Late Aug. 2002
1.4.4 Selection of Priority Projects
When selecting priority projects due consideration will be given to prevailing different social
circumstances of nations and races living in each region in Ethiopia., In addition, the following items
will be considered respecting the intention and the financial validity of the ETC when selecting the
priority of projects.
1) Realization of starting a business
2) Available man-power / time of the Team
3) Economical, financial and technical viewpoints
4) Impartial provision of telecommunications services
5) Dissolution of expanding waiting applicants in area/region
6) Solutions provided for old facilities that are the causes for frequent line problem
7) Improvement of overloaded backbone networks
8) Check the point to be developed for activation of local economy, etc.
9) Rural telecommunications network
1.5 Work Schedule of the Study
1.5.1 Overall Time Schedule of the Study
JICA dispatched the Study Team to Ethiopia between December 8, 2001 and March 11, 2002, for
executing the first study in Ethiopia, followed by the first study in Japan, for preparation of an
Interim Report.
Overall schedule of the Study and its principal items are given in Figure 1.5-1.
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Third Work in Japan
Third Work in Ethiopia
Second Work in Japan
Second Work in Ethiopia
First Work in Japan
First Work in Ethiopia
Preliminary Work in Japan
MAR. 2002
NOV. 2001
DEC. 2001
DEC. 2002
JUL. 2002
SEP. 2002
OCT. 2002
NOV. 2002
Modification of Draft Final Report
Submission of Draft Final Report
(Technology Transfer Seminar)
2nd Field Survey
(Selection of Priority Projects)
Feasibility Study
Submission of Interim Report
Master Plan Study
Submission of Working Paper
1st Field Survey
(Study on Demand/Traffic/Network
Submission of Progress Report
Submission of Final Report
Submission of Inception Report
(SOW Confirmation)
Preparation of Inception Report
Figure 1.5-1 Work Schedule
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1.5.2 Progress of the First Study in Ethiopia
During the first study in Ethiopia, form December 8, 2001 to March 11, 2002, the Study Team
carried out the following work together with its counterparts:
1) Explanation and discussion of Inception Report submitted by the Study Team
2) Collection of data/information (socio-economy, telecommunications, etc.)
3) Analysis of data/information
4) Field Survey (socio-economy, demand, and facilities)
5) Macroscopic demand forecast
6) Study on long-term development strategies
7) Preparation of Progress Report
8) Technology transfer through field survey and workshop
1.5.3 Progress of the First Study in Japan
During the first study in Japan, from May 24 to July 6, 2002, the Study Team prepared a draft Master
Plan based on the results of the first study in Ethiopia. The draft Master Plan mainly consists of the
1) Review of demand forecast
2) Traffic forecast and circuit calculation
3) Telecommunications network plan
4) Operation and maintenance plan
5) Human resource development plan
6) Project formation and selection of priority projects
7) Evaluation of the master plan
8) Technology transfer through a one-month training in Japan for a ETC counterpart
Details of the Master Plan are referred to in the respective Chapters of this Report.
1.5.4 Progress of the Second Study in Ethiopia
1) Explanation and discussion of the Interim Report
2) Discussion and selection of the objective areas of the Feasibility Study (F/S)
3) Collection of the additional data/information for the master plan study
4) Site survey of the objective areas of F/S

  • Mekele area
  • Bahir Dar area
  • O/F route from TR-III (Addis Ababa National Switching center) to Nazareth.
    5) Micro demand survey by interview.
    6) Draft basic design of the F/S projects.
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    7) Collection of the cost information of the local materials and labours.
    The Study on Telecommunications Development Plan, Ethiopia
    8) Preparaton, presentation and discussion of the working paper for the out-put of the
    site-survey of the objective areas of F/S.
    9) Study and the further discussion on ETC’s comments on the interim report.
    1.5.5 Progress of the Second Study in Japan
    1) Preparation of the project implementation plan including the function specification of the
    project element / facility, installation standard, Bills of quantities and the project cost
    2) Recommendation for Operation and Maintenance plan for the F/S project including the
    man-power requirement and the training plan.
    3) Finacial analysis of the F/S projects to estimate the FIRR.
    4) Preparation of draft final report dependeing on the further study on ETC’s comments on
    the interim report and the newly collected data/information.
    5) Preparation of the presentation materials for the “Technology Transfer Seminar”.
    1.5.6 Study Organization
    The field survey and the 1st study were carried out in Ethiopia by the following organization:
    (1) Member of JICA Study Team
    Table 1.5-1
    No. Name Duty in Charge
    1 Ryoji Sasaki Team Leader
    2 Muneo Kurono Network Planning, New Technology andServices
    3 Takashi Yamamoto Switching System/Traffic Forecast
    4 Shinichi Shoji Outside Plant/Demand Forecast
    5 Ryusuke Takehira Transmission System
    6 Takashi Matsuoka Radio System
    7 Tatsuya Kobayashi Customer Service
    8 Tomoyuki Kuroda Economic/Financial Analysis
    9 Ryuichi Ohno Tariff System
    10 Naoki Hara Organization/Human Resource
    11 Kiyofumi Ymamura Operation and Maintenance
    12 Tadashi Yoshitsugu Administrative Support
    (2) JICA Advisory Committee
    Table 1.5-2
    No. Name Duty in Charge Dep’t/Division Position
    1 Takashi Miyashita JICA Advisory
    Ministry of Public
    Management, Home Affairs,
    Posts and
    2 Takeshi Hirose “ “ Member
    3 Kosuke Odawara Coordination JICA Headquarter Project
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    ETC Counterpart Team
    Table 1.5-3
    No. Name Duty in Charge Dep’t/Division Position
    Seifu Shawel Overall
    Project and Technical
    Planning Division
    Division Manager
    1 Zelalem Bekele() Project and Technical Planning Division Deputy Division Manager 2 Lulseged Aregay “ Deputy Division Manager 3 Kifllllu Asfaw Network Planning Human Resource Development Deputy Division Manager 4 Erizka Abdulkadir Project and Technical Planning Division Deputy Division Manager 5 Adege Bekele New Technology Information Technology and New Service Department Chief Engineer 6 Derege Getachew “ Deputy Division Manager 7 Mengesha Alemu New Services Project and Technical Planning Division Staff Engineer 8 Mekonnen Gudissa Project and Technical Planning Division Staff Engineer 9 Melaku Kassahun Project and Technical Planning Division Staff Engineer 10 Gebru Kebede Telecom Infrastructure Department Team Leader 11 Temessgen Tesfeya Switching Project and Technical Planning Division Staff Engineer 12 Mesay Mekonnen Traffic Forecast Project and Technical Planning Division Deputy Division Manager 13 Tesfaye Ketema () Project and Technical
    Planning Division Senior Engineer
    14 Yarred Ezzkias
    OSP Telecom Infrastructure
    Department Staff Engineer
    15 Abdulsemed Hussein Marketing Division Division Manager
    16 Mulubhan Tesffaya Demand Forecast Project and Technical
    Planning Division Staff Engineer
    17 Birkenesh Adugna () Project and Technical Planning Division Staff Engineer 18 Mohammed Yimam Transmission System Project and Technical Planning Division Staff Engineer 19 Teklemariam Laeke Radio System Telecom Infrastructure Department Staff Engineer 20 Mohammed Ahmed Operation and Maintenance Tele Service Department Chief Engineer 21 Samuel Barbe Customer Service Tele Service Department Deputy Division Manager 22 Mueze Tsegaya S・Financial Analysis 23 Fikru Kassa Economic/ Financial Analysis Project and Technical Planning Division Senior Expert II 24 Jemal Mohammed Human Resource Development Deputy Division Manager 25 Tizibit Fantahun Organization/ Human Resource General Manager Team Leader 26 Dagnachew Desta Tariff System Project and Technical Planning Division Team Leader 27 Amanuel Tesema Administration Project and Technical Planning Division Senior Administration Assistant (): Counterpart Coordinator
The Study on Telecommunications Development Plan Ethiopia
The Study on Telecommunications Development Plan Ethiopia AGREEMENT BETWEEN ETHIOPIA AND REPUBLICOF ALGERIA

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