Dec. 3 (Bloomberg) -- France Telecom SA started a two-year contract to manage Ethiopia’s state-owned Ethio Telecom, Communications and Information Technology Minister Debretsion Gebremichael said.
The Paris-based company will, depending on performance, earn a fee of 30 million euros ($40 million) to manage the utility, Debretsion told reporters yesterday in Addis Ababa, Ethiopia’s capital.
Accounting systems will be modernized and new services introduced, Ethio Telecom chief executive officer Jean-Michel Latute said.
Ethio Telecom replaced the Ethiopian Telecommunications Corp. on Nov. 29 to help boost services and infrastructure. The East African nation is the second-most expensive country in the world for broadband Internet, according to the United Nation’s International Telecommunications Union.
An underwater fiber-optic cable link via Djibouti will increase capacity and lower broadband Internet costs, Debretsion said.
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