Technology, the case of ETC

 

Dear Sirs,

 

I like Zeru's opinion on the fact that all shortcomings should not be blamed on one person, the Prime Minister.

 

The three important people - Those assigned to develop ETC on the highest level, should perform their duties with a clear commitment to the development of Telecommunication technology in Ethiopia and should not take wrong actions due to attractive amount of commission (money) promised by Vendors with wrong equipments.

 

 In order to make things clearer, I want to share information that I have been following with keen interest.  ETC some time in Sep. 2006 came with an idea that they can get through big Tel. development in the next four or five years if they could get a partner that could finance this future development plan.

 

It was only two Chinese Tel. Companies, ZTE and HUAWEI that agreed to arrange finance for this project. ZTE - offered 1.5 Billion USD loans that will be released with a simple ETC-ZTE signature with out need to guarantee the loan on Government level. HUAWEI - Offered to do the job but they said they would introduce a Chinese bank to give the loan to ETC. They will do the job as indicated in the development project and they will be paid by the Chinese Bank while ETC will pay the Bank as per the agreement to be signed between the Bank and ETC.

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WHAT IS THE PROBLEM THEN?

 

One who does not know who the two Chinese Companies are may then ask - what is the problem then? Why doesn't ETC just go ahead and sign with ZTE? The problem is that there is a very significant difference between ZTE and HUAWEI products. There is no Comparison at all between the two Companies in regard to quality of their products and experience. There is no wonder therefore why ZTE is fast to offer to supply its products to ETC at any cost. ZTE's products have been tried in many countries including Ethiopia in the past and have failed. In Ethiopia a 40 million USD purchase have been made from ZTE to install Mobile phone equipment in Addis Ababa which later was not good and had to be removed and replaced by HUAWEI equipments. To date, no body from Ethiopia side was held responsible for making 40 million USD purchase of bad equipment from ZTE.

 

So what is the alternative ETC has now?

 

Should they go ahead and buy ZTE's equipment again or should they think for other alternative?

 

Fortunate to ETC-HUAWEI has now come with a new offer. HUAWEI assigned 29 experts of their own to do their own feasibility study of the project of ETC expansion plan in Ethiopia. After they finish their study they offered ETC:

 

1.     They will be willing to finance the project with out Chinese Bank involvement (Same as ZTE's offer)

2.     According to their study there is no need of 1.5 Billion Dollars to cover the entire job on ETC's expansion plan. One Billion USD    will be enough and they will sign an agreement to finance this project and work as partners with ETC.

3.      HUAWEI is very known for supplying the latest mobile and fixed line technology. Their equipment are presently used by world famous Tel. operators in Europe, Middle East, China etc   so if ETC will be associated with HUAWEI it will have a bright future. HUAWEI spends millions of USD on Technology research and development.

4.     They offered to train ETC staff and also expressed their willingness to make ETC one of the best Tel operator in the world.

 

 WAW!! So what is ETC's response to HUAWEI's new offer?

 

The surprising episode starts here. The three major officials on this issue - The Chairman of ETC board, The Minister of Transport and Communications and ETCs CEO, do not seem interested in HUAWEI's new offer. One would think that if these officials were interested to see a bright future of ETC, they would take time and evaluate each and every offer - no matter when it is delivered to them. 1.5 Billion USD is very big amount of money by Ethiopia standards. This issue, in our opinion should not be left to three or four individuals. The Government has to set a Committee to evaluate the offer by the two Chinese Companies. Most importantly, the Government should make a deep study on the capability of ZTE and their products. The past experience of ZTE in such technology needs to be verified before signing such a huge Contract.

 

We know Chinese Companies are becoming very worst in promising commission to be paid after a Contract is signed. They reserve up to 4% of the total Contract amount to be paid as Commission and public relations. We hope the 4% of 1,5 billion dollars will not cover the eyes of those given the responsibility to decide on the future of ETC.

 

According to our information the Board chairman of ETC is pushing ETC to sign the 1.5 Billion USD Contract with ZTE. The contract, according to our sources could be signed as close as next week. If the Contract will be signed with ZTE in such a hurry it will be a ""The biggest scandal of ETC of the Millennium". All Telephone vendors will be out of Ethiopia and ETC will remain at the hands of ZTE. If this is done ETC will remain being the worst operator with low quality equipments.

 

I call on those who know the details of what is going on in ETC in relation to the big expansion contract with Chinese Tel. Companies to come forward and give us information for the sake of better Ethiopia and better ETC.

 

Thank you

Afework Dawit

Jan 07, 07