Loan No. 1]14J RES,T,JTEDT TTn

Ilit ( 7Iepy LI14

W Thi rporti is restricte trous within the Bank. 1

INTERNA TTtINTA L BANKW ~fT FOR REGONT~RUGT!ONI AND~ DEy wiPM;r

TECHNICAL REPORT

ON THE

TELECOMMUNICATION PROTECT

IN

ETHI OPiA

January 15, 1951

Loan Department

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Al INTRODUCTION AND BACKGROUND

rresent esent -tiopian p l tc nco a ie w a._ Lt_ _1~1 jU1W .l%,t _ U .UL L t.

L 0 rre e ' zU rz:XV bD X,tl1 Pu dl pU.UI a IW C:0;_ UilVOi ) VdW1J_UP1 XWUvVYi S1SC.l t

operated as a monopoly by the M.iLnistry of Posts, Telegraphs arid Telephones,include an Addis Ababa telephone SySteml, a prUvIlncal- bybtemll and an inUe-

national system. Addis Ababa is served by a first-class automatic telephonesystem; nearly 100 different communities are interconnected by a 2,500 nm:ilewire network; 18 towns have local telephone systems; and an internationaltelegraph service connects Ethiopia with tne rest of the worid. Sixteentowns have telegraph service by telegraph or radio instruments. For othertowns, transmission of telegrams is by telephone0 Miost of these tele-conmmunication facilities were installed during the Italian occupation ofEthiopia, 1935 - 41. Only a snmall part of the Italian plans were carriet1out, but this amrounts to several million dollars worth at today's repl cementcosts.

20 Some 1,700 telephones are instal-led in Ethiopiay and, of these;,about 1,250 are in Addis Ababa. Assuming a population of 300,000, the cityof Addis has a telephone density of 0.4 per 100, as compared with 2 for Ceiro,23 for Paris and 45 for Washington, Ethiopia as a whole has only 001instruments per 100 population, as compared with C.05 for China, O.L forEgypt, 5.0 for France and 25.0 for the United States. Not only is the amountof service limited, but even by the standards of other underdevelopedcountries, it is very poor. Lacking competent personnel, particularlyr formanagement, the Ethiopian Government, since its restoration in 1942, hasdone little to maintain or rehabilitate the Italian-built system.

3e Telegranh service is similarly limited in scope and also poor inquality. Ethiopians send 0.005 telegrams per year per person as compared1with Egynt? s 0.02 And UTnitedfStat' 1.5. Eigahtv percent o-f thes arP e irthe international service. Methods of handling traffic result in long,unnecessary delays. Inadequate use had been moe of aa -ble equipmrentwhich would provide better service. Lack of sufficient attention to businlessarrangemlents results in an - nd__y large part of the r+evenue fro.m. te1egrservice leaving the country.

Present Management

4. management of all telecommunication activities is vested in the}DMJ.n4isOE"er V * of ±" '0 1±±iZ T ps ting £JJJLLb i5 a Lorilier Do±1cofficial who has had no business or comm.unication training or experience.He is advised by 4 ret,red European maU:n-ufacturer having littie operatingexperience. The radio services, under a contract with the Mackay Company,have an Amer-ican adviser who has no authority and whose advise is seldomheeded. One Egyptian and several Italian technicians are employed in theoperation and maintenance of the telephone and radio system. With a fewnotable exceptions, the Ethiopian telecommunication employees, of whom thereare about 700, have had little training for their work. They reflect thelow educational level of the country and the lack of experienced management.

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5. Subscribers and potential subscribers have been particularlycritical toward the present management, while the management itselfattributes most of its acknowledged troubles to the govermment's method ofhandling finances, The Ministry turns over allrrevenues to the Linistry ofFinance and depends upon inadequate budget grants for its expenses. Anunduly large number of eiiployees are engaged at the higher levels in theivkinistry. In snall towns may be found a switchboard operator, a telegraphoperator, a toll operator and a lineman on duty when two individuals at tiemost are actually needed. Supervision is far from adequate.

Reasons for D xpansion and Rehabilitation

6. Ihe basic justification for expanding and improving telecoimiinic-ation services stems from: (a) proposed increases in industrial andcomlmercial development; (b) the need to extend conmercial service to towosand areas not presently served at all; (c) pent-up demand in areas presentlyserved; (d) a realization of the need to knit together the political, socialand economic life of the countrv: (e) the important benefits to be derivedfrom education and entertainment over telecomaunication carrier facilities;(f) the 7overnment1s desire to imnrove its adninistration of the roimtrv.thereby.accomplishing greater security and stability and more rapid economicdevelop.ment O

7. Specific difficultiesj owing to the present li ni+ed t nd u nreliableservice, miay be cited: (a) merchants are reluctant to do business by tele-phone or te'legrapl'.h snce- +thee 40 no prTvaynr of nmrniun ca+ion; (b) nnc,n-,

activity is suppressed due to lack of knowledge as to prices and marketcond.ltions; (c) irnternaa transportation" L is rendeired inefzficieLX.t1 b'y lack O.f

contact with vehicles; (d) government is hampered by delays in transmittingorders, instructions and reports and b'y lack of secrecy-; (e) rmista-eS intransmission cause confusion and losses; (f) all activities are slowed downin their operations by slow and unreliable service0

8. The country's present econorry and needs justify something like adoubling of present telecommunication plant. lmproved service, moreover,.will perhaps double thle use of existing and proposed facilities as soon asthe public becomes-conscious of such improvement. An early overall quadrupl-ing of service can thus be anticipated. Subsequent expansion will dependlargely upon the economic development of the country, upon efficient service,and, in no small measure, upon the ability of new management in promotin3public confidence and goodwill.

Objectives and Principles

9. The objectives of the Bank with respect to Ethiopian telecommunic-ations were defined fqr the Baak's technical mission as follows: (a) to buildup the optimum, efficient, balanced and modern plant within the limits ofabout $1,000,000 of foreign exchange; (b) to develop for such plant an o:erat-ing organization which will assure continuing efficient operation andessent-ial expansion.

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10. The proposed Bank loan to meet the foregoing objectives should besubject to the follo-wing conditions: (a) the project must be demonstratedas technically and commercially sound and the estimated costs established asreasonably accurate by a technical representative of the Bank; (b) the Ethiop-ian Government should enter into an arrangement satisfactoiy to the I;ank forthe management and operaSion of the telecommunication system during the lifeof the loan by an organization or a staff established as competent in ti:efield; (c) the Ethiopian Government should be required to provide all of thelocal currency needed to complete the project.

Description of the Project

11. With these objectives and conditions in mind, the Ethiopian Gcvern-rnent, in consultation with the Bank's representatives, have set up threeseparate sub-projects, each an extension and improvement of an existingsystem, viz:

(a) the kddis Ababa Telephone System;

(b) the Provincial System; and the

!(" Tnter mrt-Lon21 Svstem

The propo' S of these sfr-ects mv be rough1v visualized in Lerrr!E; ofthe foreign exchange required for them: the Addis Ababa Telephone Syst2In,ci2r0,00n; the Provincial (or Toll) Syste.m, vs8O,O00; arrd t.he Irternatrioq1System, 'l0O,C00. Incidental to carrying out these sub-projects and op&ratingt.-hie co.',n,leted stel, is +- -r4 rtrh pro iii nnohl a y s en4r.erin g, - co sru Iion

and operat:Lng organization and an adequate training program. Such overhead4 v* -4 - nr n n^n . llT44' ' r ' ' '- c4AeA -1 .. 4' +1-a cULv;Ue a L.Jk.AJ. eV.ll.. coVll UAn -L .1mJAl U , U VCr a . UoJec

is estimated at 3l,5G0,000 in foreign exchange, largely for purchases inEuropean countries. Approximrately the sam,e arount will be reqiired in ;ocalcurrency. Assuming that the international situation does not furthercomplicate supply proble-ms, it lmay be estimated that completion of tre pro-posed project will require about three years after the new operating organiz-atiun is f'ormsled,

12. The Addis Ababa Telephone Systemi. sub-project is limited to thelocal telephone system for Addis Ababa and involves the increase of thecentral office capacity of tihe present dial switching sdystem for 1,-50C -o2,400 lines; the rehabilitation of present outside plant; the installat:Lonof needed subscriber stations, pay stations and PBX's; the essentialrehabilitation of buildings and the provision of tools, equipment and suppliesto assure of adequate,continuing and efficient nmainternance of the improvedsystem.

13. The Provincial System sub-project covers all telecommunicationactivities operating within the country except the Addis Ababa TelephoneSystem. It consists primarily of the rehabilitation and extension of the2,500 mile network of toll lines installed by the Italians and the mult.L-plication of the communication channels oi such lines by introduction ofmodern carrier equipment, It provides also for small local telephone

systems at about 20 important towns and provision of public telerrhune stationsat somie 130 additional towns. It provides for high-frequency (HF) ra6io-telephone service of 18 stations, integrated with the long lines, and serving13 remote cormunities, largely near the southeast and southwest frolit±ers ofthe country. A very high frequency (VHF) multi-channel network is alsoproposed, integrated with the long lines wire system at Bati and Diredawa.This radio link system will operate over essentially line-of-eight circuitsinto a switching central on the 6.000 foot mountain of tioussa Ali, ena`;l:Lr;gintercormmunication of Aden, Djibouti and Assab and communication of thlesecities vrith anv Ethiopian cities served by the Provincial system. The c`-rcuitbetween Diredawa and Bati is provided to sirplify transmission problems andalso to nrotect the critical main line circuits of Addis-Dessie and Aciis-Diredawa. A shlort link across Lake Tana is also included in the program.Telegraph service to all coipamunitJes served by the wire or r ardio te '-epnosystemi is also conteiiplated. Essential maintenance facilities, equipmnentand si-lies are included6r

14 The International qysterm. sub=promect relates to +eleph-one A '-le-graph service to foreign countries. This will include a new inter-Ticnalradlote'lephone circulIt through Bernne, Swlitzerlar.d for oth-er E'uropearn s-,.,-lLtc h.i 8- ~W LJ4 ' v.~ - LI~J li 1Y.~ L LI L. U \ .J JLIiL U VJ 4. 1I

point) to European, American and other continental telephone systems. Thisserv.ce vvill be tXed into the Provincial and Add s Ababa Telephone Syste-nsaFrom a telegraph standpoint only a limited amount of new equipment is proposedand emphasis is placed -upon laking the waximuiji use of avaiable equipment.The VHF link via Moussa Ali serv-ing Assab, while alsn providing internationalservice to 'Djibouti and Aden, will be operated oy the Provincial System.

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B. ADDIS ABABA TELEPHONE PLANT

Introduction

15 Prior to the Italian occupation in 1936, Addis Ababa had a sm2ll,inefficient and antioqiated local-battery telephone svstem. Nothing of thisremains. I-mmediately upon subjugation of Ethiopia the Italians launchec ahighly ambitious development program Addis was to have three good-sizedautomatic (dial) telephone exchanges to serve the present downtomn area andtw.^o other areas to be built up. The exchange in the center of to.'m ("1ittor owas completed, and the exchange a mXile south of town ("Imperial") was -rgelycOmpleted bUt no equipenut was installed. Nor wrkwas doe o,n the t.hirc("Plaza Romra") excriange. Ihe ultimate plan, envisaged for early completion,

.X. L Or I rz.1 tv) 003.iIs 'A> ad-,Wnce ;-.ica equip_ment* rlhe .-- +o- exchant,,,

was comrpleted, includirig 1,500 of the projected 3,000 lines of central officeplant and the complete 3,050 lines of- outside p_ant. This exchange an-dsystem is the basis of Addis' telephone service today.

16. only Lo0 of the 6,500 licensed mercharits in Addis have telephones,and, althougih Addis is tre seat ol' governyientD, lttl governmental businessis done by telephone. Approximately 500 :Lines were in service at the tin.eof the restoration oI the Ethiopian Government, and tnis number nad beenbuilt up to 1,250 by the fall of 1950. Some additional service is availableand being urgently requested, but is denied by the vinistry on the grouindthat because of the limited switching capacity of the plant, service vold betoo greatly degraded. Thus 250 lines are kept idle, Present service is good-to-excellent, except for poor maintenance, but it is true that with-i onlv 9links per 100 lines, the switching equipment is about 100% loaded. Presentholding and delay -times are not abnormal for good service.

17. There is virtually no statistical basis for determaining the servicedemand. About 150 applications are on hand and many inore would probably bereceived were it not commnon knovrledge that there is no hope of gettingservice. Interest in service is often discouraged by the excessive inistall-ation char-es and the large advance payments required.

18. The main objectives for the present are to bring the inside p.lantinto balance with the available outside plant, to increase the switcningcaracity o.f the inside plant and to watch future developments analvticallvso that reasonable traffic analyses can be made in the future.

Central Office Plant

19. The central office plant is type 7D rotary, automatic system builtfor 11rura;1 sprvice" Fy fhree. mqnrifqftnrina subsid+is ., T & T. in Europe (I.S.E,). Fifteen hundred lines are installed, all capable of good

rvice bv n the link capacity byr about a third .alcondition of the main frame, switching ant1 accessory ecuipment is excel:Lent,except for the storage batteries. hugr.e- tation'* Uy equlpn,ent o 3.JL 1-

design and manufacture is the only sensible solution.

20, Agreement has been reached to increase this plant by 900 lines,bringinglr theP vL-Ua.l *-o ,,4% U-jusalej J-res arnd hus- -ne-ar'- --unO resentL)V.LI1~.I5 UII~ (.)1~d± U £,L~~JUU~UJ.~ J.4i~ W~U AIU~ ~ed.L,y UUUUJ4X.11- J9Vi Lto

useful capacity. New storage batteries and minor improvements in maintenanceand test equipment are indicated. Delivery OL equipment and supplies Willtake 12 - 1- months.

Outside plant

21. The outside plant, consisting of 3,050 lines leaving tile Littorioexchange by buried, armored cable, and normally distributed by aerial cable(except in remote areas), is generally in good condition. These 3,050 linesjust about balance up with the proposed 2,400 lines of the central officesince the directions, areas and amounts of required outside plant e;xpansioncannot be accurately known. A complete rehabilitation of present outs-deplant is indicated, as well as a limited anmount of extersion in kno.rn, wiieakly-covered areas. A large amount of Pirelli underground and aerial ca:le is onhand in case sizable expansion is necessary. The bulk of distribution is byaerial cable on steel poles, although some concrete poles are used in theAddis systeim, Future developments should emphasize joint use with po.^rercircuits, thus minimizing the number of unnecessary pole lines. In generalthe distances are short and the wire sizes are adequate to make unimhportantany transmission studies in Addis, Good maintenance is all that will berequired to give good transmission. The work required can be accomplishedlargely with materiLls on hand and local labor. About 15 - 20% of theterminal boxes and about 5% of the present cable need replacement. Im,provedconstruction equipment, tools and supplies are also needed.

Subscriber Flant

22. Subscriber plant consists of the individual drop wires from terminalcanns, protectors, interior wiring_ snbspri hr telpnhonp sets and PetPnsn.nrq

PBX's and pay stations. Special equipment su.ch as special extension--sivitch-incy aTinrrar.m.nts lcl-iQn bels fet, isz similarlyr classified.

Frobably something like 15% of the subscriber sets will go to scrap; anotner15% require rnajorrehabilitationn DTrops, which average 1to 3 spans of 35-_meter-spaced poles, need general replacement or repair. Considerable

no o-f +1h r.ecsary, re are on hand. S-i-llar se.7n,4 ng of -nslde

installaticns is also indicated. About 10 PbXVs are installed of whhich onllyhalf a working du 4e to m -troubles 'a'-'- v : 1

*C~~~"JL %A" v _ VVJ aj U; iV*IIC*WINL=CL&W - VeG *v U WUQJ a i WIU1 c IV IIU | JJQ D1 o

It is thought that about 30 PBX's will be needed. Sixteen pay stations arepresently islled, bu these are -nesal LI in -- poor condit ar.d not

installed in bQoths. It is anticipated that about 35 properly-located boothstations can.be proven -.L. A prelude to any actiu Uor ldU subscriberstations, FEX's and pay stations, is a thoroughgoing survey. Ordering ofequlpnlent for 1,000 ne-w- subscriber sbations immediately is indicated,

uperating and ufiice Building

230 The present switchboard is located in the .Lttorio excha-gebuilding, which was designed specifically for the 3,000 line automatic plant.It likewise houses the Addis Ababa toll switchboard, the public toll officeand the doAntown business office. The building which is well-located in thecenter of town, is well constructed and in good condition; it satisfies the

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needs of the husiness offince Pnd exchwange.

S I T-, tr1qne i n and inni. teln e- Fa cl litl.e

9Jw Cupp!mlyI mr,vrd r.intenrance fanlie I t h e -IIn AdAdi Ababa -n Drov, l,

Telephone Systems are located in the warehouses and aijacernt area called "ViaAmelia; aott 1..a hCIf Ca nl,il northl -t' +1.A -_+A_- -- +- 'Pt, -I_ 4 4

constructic,n and condition of these facilities are fair. WTith adequaterelhabwia, 1it. can prpel tos an proid stoag a,e o te1 ~1 UL A.L.±L~ 1 L'JJVI I L~ U LCI ij IVP t; I .L,y L UL1U0t CIL UP U V L .VUt: 0 ItU Icl;t: et i -Ue I I. -1 UL1 J.t ~Ababa and Provincial outside plant activities. A considerable improve!i,entO1. BIdAJ± u Jo0 I1Ut~Ut:Uo rU1±UItLt U.1. UVVU ±±II~U~U 14tL1UzL1a;1(; UrIJAj10 .LO

suggested, as well as stocking of necessary tools and supplies for cons':ructiorand maintenance of outside and subscriber planit,

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C. PROVINCTAL PLANT

25, Virtually n.o interurban telecommunications existed in Ethiopiaprior to the: arrival of the Italians, except along the raillray pole linebetween Addis and Djibouti. Other land Sne ssrQemas rdeeonpre ,r%nnt- r+A.4 1l"-of Italian military need, growing, in general, from Eritrea south. Aftersilh 4., no+4n,4h4a1ot - c a.c r i nr,n a,l 4 A + o nrJ -r noAo II" 4 1 4 + + nnlrsubJugatlo h_ladln yse.va consolldated anl epanded -ni it-ooform much as shor,n by the solid black lines on the attached map. Lines &hichwere bOuilt frm 4 ;sma z- to Ad4 4grat f A and- hdw si Iexi;st- but.4 have been

L,tk ., .~ 4Z VU± r).~W;iJ a %,J -"Lr, ; 1 CI 1- XI%VVC 0-J.L.LL ~, U. LJULV J1

disconnected. The Ethiopians dismantled or neglected to use a few of theItalan llr.e s anla adde a3 few of - hi o- 4., This cor.pet -iesse,JU. ialI1 ± JU ~UUtU a J;-VV VI WltI.Ll' UVViIo ±Ll~OULi_L,U VV wi're O..1U

serves something less than 100 towns with telephone and telegraph. SevEralother out-of -the way towns are con,ec ted by radiotelegLraph -i th -ddis - So_meof the larger 'towns have simplexed telegraph service over the long linetelephone circuits.

26. 1Numerous pian* suggesteu since the restoration provideu forstrengthening interurban telecommunication by radio. The Phillips Comoany(Dutch) proposed to do this with HF radio and presented a plan which was thebasis for the original P.T.T. requests to the Bank. Siemens-Halske (German)proposed -VHF radio links and the Sudan Interior Iission (a British missionarygroup) presented a V.H.F. plan for its own use. The railway proposed thatthe governme!nt cooperate in rehabilitation and modernization of the Addis -Djibouti circuits for joint use. The Bank's mission and the Ethiopiangovernment have agreed that the backbone of EthioDian telecommunication should.be the wire system, which must be rehabilitated, extended and mnodernized. az.Kdthat the outer fringes of the country and desert areas should be served byradio.

27. The present interurban service is slovw, uncertain, non-private andhas poor transmission characteristics when it operates at all, It servestoo few tovwns and is inadequate to meet the traffic loads of the towns served.Because of the great distances and the low state of the country's economricdevelopment, it will be years before a comprehensive, provincial netwrork canbe made profitable, However, the adequate development of such a network isof paramount importance in any long range plans for the Empire and should bethe most important single concern of the new Telecommunication Authority.

Long Lines

28. I'he most important element of the provincial plant is the pole linegrid connecting the towns, Five primary leads of this system emanate fromAddis as follows:

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General Terminal Length Number of TovmnsDirection Tovm (Kn.) Served

North Gondar 1,675 25Northwest Debra Marcos 930 15West Lekempti 340 10Southwest Gimma 395 12East Jijiga 600 16

Totals 3,940 78

These primary leads are on steel poles of three different types, Except forthe Gimma circuit, which is of iron, all vwire is copper or bronze of 2 or 3 mm.gauge (equivalent AF.G = #12 and #9 respectively). A very substantial invest-ment resides in these lines because the poles and wire would be extremely.e;:pensive to replace today. Even though the poles and wires are in excellentcondition, the lines require complete rehabilitation0 Present secondar.ycircuits of about 1,000 Km. require complete rebuilding, with new poles. lewcircuits should be provided to the extent that available funds permit.

29. Contrary to initial reports there is little evidence of circuitsabotage by the local people and it is believed that rigid disciplinary actionwill eliminate this. Hoviever, wooden poles are subJect to theft for fueland guy anchors for conversion to plows. The long range plan should providefor peripheral circuits between the primarY? radial circuits. In this waysecondary towns could be reached by a minimum of two independent circuits andkey tovns by three independent circuits. Such peripheral circuits could berouted to give service to a large number of towns.

30. The work on pole lines includes recovery and re-use of 3,000 polesand anproxima.tely 65o miles of wire and accessories: the restrinFin7 andtransposing of 1 or 2 pairs on about 1,900 miles of pole line, includingrep'acemnent of all def'c(tAive parts, reguyin.g; etc ; nd stringinv Ivire onabout 650 miles of line. The loop on the enclosed map of Asella - Irgalarn -Gimma - Gam.bela - Lekemuti may not be possible of accomnlisliment in *itentirety within present project funds.

Citv TP1PnhnnA SvqtAmA

31 The nresent -F. telephone syvtemq in the 17 tow.rnq * so serve1 areall of the local battery ("magneto") type. In nearly all cases thisqniiilnprnt anrl ascril suctv'c hrnerzti ain ni plnt is antAmiqa+.id, in ery

poor condition and only good as junk. The service is in keeping with the

(* v. Harar Dlredaa,n J4 i -iga, Qn Tafari, Tess e, liffakI- I

Adwa, Axum, Debra Marcos, Gondar, Lekempti, Gimma,TNazareth, -111 Ab,I %J-..LQols ar Fich.)

.1 1) I- i_ .LtJ.~ - -- -- A.~ Z .. - .J -

32. The traffi de.and atu prase t JuoktLfLy reasnaul good r,UC.ana

exchanges in the towns of Harrar, Diredawa, Gondar, Dessie and Gimma. Noother towns can prove-in local serviice at this time, especially of the

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automatic type proposed by P.T,T. However, since toll system boards arerequired, combined local-toll boards are to be installed in Dessie, 1Llakale,Adwa, Gondar, Lekempti, Gimma, Diredawa, Harrar, Awash, Debra Sina, Dabat,Bati and Jijiga. Small local switchboards may be installed at Debra 'fAarcos,Adigrat, Axum, Asbe Tafari, Nazareth, Fitche, Woliso and Ambo, which arepresently served, if ways can be worked out in each specific case of makingthe service pav for itself. Service can be provided in other importanttowns not presently served under similar conditions. A detailed survey andbusiness arrangenrent is required for each town.

33. In whatever towns local serVice is provided comp'etely new plantis highly desirable, Since adequate funds are not available to permit this,initial service v1ill necessarily be over the rehabilitated present circuitsuntil the new telecommunication authority can make better arrangements. Eachtown nsnAidered for le-q qPrui e rniimt. 'h uibhipnte to a olant eng'neer;nvstudy. In many cases such study will include a suitable exchange build;ng.

small ommunirty Stations

3I, t+ +)he preser+. - eci h onf' 71, + uwms i scrvedA byir a csi tel +ephone

instrument on "omnibus" (party line) circuits between toll centers. Currentpans provid.e Ifor aprxsaeydoubli ng thais n',m1be-r Teesnprvc

in small community service. This can be obtained by construction of smallbuil(ing or 1 _o- n I-.-, A s4-uA- o 4-1- a l - - -v 1 5 A + 1 - n a

tJ.L L~JtJ U&LQ* fi U UUJ v.Ly UIth -LUO.J. %,%JIUUy t.eUIbJ. u l. p 1S. U" JJ

desirable.

..LUL± C-LanI±L

35. The prsei toll system of Ethiopia is of thie S±rnp', eIur,letLi

pair, voice-frequency type. Neither repeaters nor carrier equipment are inservice. Distances in Ethiopia are too great to permit of satisfactorytransmission without repeaters, especially with the poor maintenance ofpresent culrcui SL, ri-reva.1.Ling cHUIiIsUiii ar s-uc as jV reqUire a UU.Ll p-lan

making maximum. use of carrier. Traffic volumes, available plant, flexibilitya-nd simplicity all poil to U tO ackable" car4v. This type of carrieroperates over two wires and uses the same frequency band for each directionof transmission. Wihere two channeis are desired over a single pair oI vwires,one is voice frequency, the second is carrier just above the voice frequencyband.. If another channel is desired another carrier unit is added at ahigher frequency than the original carrier unit. The most important circuitsin Ethiopia will require one voice-frequency channei pius three carrierchannels, The toll plan provides for carrier terminals at Dessie, Ifakale,Adigrat, Adka, Gondar, Lekempti, Gimma, Diredawa, Harrar, Bati and DebraMiarcos. Carrier repeaters are provided for at Debra Sina, Allomata, AIddiArkai, Awash, Abati and Cubbo. Diesel generators and storage batteries areprovided for at all terminal and repeater locations, since even in the fewtowns where power is available the service is unreliable.

36. The heart of the toll system is Addi-s Ababa. A new toll switch-board of three D)ositions is to be installed in the capital, with twelve carrierterminals initially, It is probable that the toll center will be located in

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the Imperial Exchange. Emergency power will be provided in event of citypower failure. Essential maintenance equipment, tools and supplies wil). beincluded.

HF Radio Links

37 J A few outlying towns not on the wire grid are presently sernac[by radio-telegraph with Addis. These include Nieghelli, Gore and Goba.Other radio equipment, to back up the wire circuits, is installed at Dessie,Diredawa, Harrar, Gondar and Lekempti. In general this is Canadian R.CA 250watt telephone equipment. These sets have not been Droperly maintained norused to anything like their potential.

38. The Ethiopian government has been especially insistent that radiotelephone service, preferably integrated with the toll and local telephoresystems, be provided to certain "frontier" towns. In general the proposedstations, which were originally 48 in number, would be highly uneconomrical.Agreement was finally reached to provide 18 stations for service to 13 townsas shown on the telecommunication plan. The stations will require their ownpower units and will be provided with privacy equipment. They wrill operatein two nets, with the eastern net control station in liarrar and the westernnet control station in Gimma. Co-ordinate equipment will also be set uy) inAddis.

VHF Radio Links

39. No VHF radio links are presentlv installed in EthioDia. Uponarrival in Ethiopia the technical mission felt that the larger part of theprovincial -telecommunication needs could best be met bv such links. Ho-wfever.the availability of the basic wire net, the low level of technical trainingand the difficulties of protectinrg and maintainingp monntain-top stat-ons ledthe group avway from VHF, There is, however, one important exception. Thisis the multi-channel VHF network which will be integrated with the Drovincialwire system at Diredawa and Bati and will serve Assab, Djibouti and Adenthrough a reneater-switching station on .Loussa All. The Diredawa-Bati linkis for improved transmission in the Diredawa - Djibouti service, but moreespneciallv s nrotection against outages of the Addis-Dessie and Addis-Diredawa circuits. These are the most important circuits in the country.The est,imrtes for eniiinment do not, include stations at Diihonti or Adien or anAden repeater station if such a station turns out to be necessary. It isexpneted that the Frennh Ssm21ilanrl and AHen Protevtorate niithorities vni]lwish to supply equipment in their territories. If not it will pay Ethiopia toprovlde sxzch equipment, as revenues may be expec-ted to be exQellent.

Ioi 'Phe mlvoy ia , m+ nr UT-ITP of -" InF for later +)en n t nr-vp ncla

system are very great. It is therefore proposed that an experimental sectionof ~~~~~~~~~~theTlc-uiat uhrtysriing school iniat a 'ong- Ian

program of field intensity tests, equipment trials and technique investigationsiLn this .Lf.L

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Domestic Telegraph System

41. The equipment now in use for domestic telegraph service isthQroughly outmoded and should be discarded. Except for a few of the largertoPns "telephonogram" service is preferable to a service using telegraphequipment requiring trained operators. Teletypewriter service is indicatedfor Addis, Dessie, Gondar, Diredawa, Harrar and Assab. A new centraltelegraph office, combined with the International service operating andbusiness office will be established in downtowvn Addis.

Supply and Miaintenance Facilities

42. Supply and maintenance facilities for the Provincial System willbe largely centered in Addis in the Imperial Exchange. Appropriate suppliesof equipment, tools, spare parts and supplies will be procured and maintained.

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D . ±1MrE'dTENvA1 T UIONAL rPLANJ1

introduction

43. International service is presently limited to manually operatedradio telegraphy between Addis and Aden, Beyrouth. Tangiers and Djibouti.In general Aden relays to Great Britain and all British possessions; Beyr=uthto Buropei Middle East and Asia; Tangiers to the Americas; and Djibouti toFrance and French possessions. Present service is very poor and rates high.An inordinately large part of the revenues leave the country for relayingservices, particularly by the Aden station. No international radio telephoneservice is available.

Tranmtting Station

44, The radio transmitting station is located on the Gimma Road aboutthree miles southwest of Addis. All of the transmitters used in the inter-national service are of Italian manufacture and in satisfactory condition,although over ten years old. A 7-2i KW and a 2± ^W are available, in additionto several lower powered units, Emergency power sunply is provided. Thebuildings on Gimma Road are in satisfactory condition and entirely adequate,including quarters for two transmitter attendants. A sizeable antennae fearmis available and ground conditions are good.

Receiving and Onerating Station

45. The receiving station is located at the Imperial telephone exchange.Onpratinn presently is At the receivers, but plans are underway to reopen theItalian remote receiving station on the Akaki Road as the noise level inAAddis is high -vA an. t antenae Pa-ryi not - ynin-lei .l Avran+agr iA

not taken either of directional receiving antennae or diversity recention.Rec-eivers used- are of A"erican Imanulfacture, ab-out 1lO years old. Auto,-ti

transmitting and reception equipment is available but seldom used.

Projected Plans

46. The principal proposal of the 1'ission is to instal a modern, singleside-band radiotelephone tranmitterfreceiver s,ystem. including urlvacy equip-ment and terminal equipment for integration with the Addis and ProvincialTelephone Systems, It is believed that adequate traffic will develop fromthe outset to make this station a paying proposition. It is expected thatservice will be to Berne, Switzerland, where adequate facilities exist forswitching calls to and from all Parts of the world. Berne's central locationin Europe will tend to imnrove and reduce charges in European land lineservice. Rehabilitation of the Gimma Road station to properly house the newtransmitting equipment Is planned-.

47. Radiotelegraph will be placed in a decidedly secondary role withthe installation of the Bati-Moussa Ali-Assab-Djibouti and Aden V.H.F. system.However, rehabilitation of present transmitters is proposed. along with provi-sion of a suitable remote receiving station used jointly with the overseastelephone at the old Italian receiving station. Rhombic antennae, high speedequipment, and diversity reception will be provided. The buildings involved

will be placed in first class condition.

48. A suitable business office and operating office will be establishedin downtown Addis, including an overseas telephone waiting room and booth,.The operating office will be shared with the domestic telegraph section o03the Provincial System.

49. Miscellaneous international service includes land line telephoneand telegraph service into Eritrea via Asmara and thus throughout theEritrean teie-communication system. This includes carrier service to Khar-toum and a submarine cable from Maesawa. Fxtension of the provincial land-line network to include frontier towns across the border. such as Hargeisa.in British Somaliland, is contemplated.

50. A complete reorganization of the International Service will fbl:lowfrom the above proposals. TI- ;oroughgoIng engineerIng of the new system isrequired, along with a comolete revision of business arrangements. The fre-quency problem will al9 reqir conkdra,o but 4t i9n -emed tobe

serious since the new radiotelephone will be "party-lined" with other cou11-tries and telegraphL requirements will be reduced fror, the present.

E. ORGANIZATION AND MANAGENENT

51. The Bank's consultant has recommended that:

(a) the Government should establish a new, autonomous operatingorganization to be called the Ethiopian TelecommunicationAuthority;

(b) this operating organization should have at all times duringthe life of the proposed loan a management and staff accept-able to the Bank;

(c) a general manager, a commercial manager and a chief engineer -all selected f-rnm _brnos fnr their nrrf A1rinnnl ormrpetenn

and having qualifications adapted to the situation inEthiopia - should be engaged for long-term or 4ndefIniteappointments;

(d) a manager should be secured from abroad, under e contract ofabou+ three yearsl d=,ation, for each of the three systremsin the telecommunication network, that is, the Addis Tele-phliione System, t1hi £Provi a Syst em, and thle It.ternati JL on '-l

System;

(e) additional foreign personnel should be engaged to the extentthiatu thie managemerl-' dUeems it nece1-ssar8Xy toU mtelet opera tlU ionalrequirements;

(f) such temporary foreign personnel should be contracted foras are essential for the efficient engineering and construc-tion of the project;

(g) the best available understudies should be assigned to eachof' the-personnei referred to in (d) and (e) and trained totake over their respective positions;

(h) the operating Authority should establish, under the controLof its general manager, an Ethiopian Telecommunication Instli-tute to train Ethiopian personnel to ensure the maximumreplacement of foreign by Ethiopian personnel;

(W) the general-manager should be given the widest latitude inthe organization and operation of the company with full free-dom to hire and fire, subject only to broad policy controlby the Board of Directors.

It is estimated that the imported personnel required to carry out theserecommendations would require about $175,000 or the equivalent in otherforeig'n ourrencies during the three-vear neriod of construction-

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52. .It is also recommended by the consultant that the selection andappointment of high-calibre personnel in the top managerial rccitionsdescribed in (d) and (e) wili be preferable to entering into a managementcontract with a foreign company, on the ground that such a contract (a)usually requires a managerial fee in addition to salaries and expenses ofthe personnel required; (h) involves a serious risk of diviaed lovylties;and (c) in the circumstances of the telecommunication industry, is not1ikeyv to hp possible except. w.ith one Pthe coTnmpanies havrn an inter-t.in the supply of. equipment and materials. On the same ground the consul-tant recommends that the memb b ero of the managerial and technical staffshould be entirely divorced in affiliations or interests from organizations

whose ~ ~ ~ ' 4.trss ol e tvranewt those of the "thopian Te_leco"mu=aa~n t Auh o v i A. U Y L .L UL '. UL V I.AJL.L A. L

nication Authority.

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F. FIITANCIAL ANALYSIS OF TIE PROJECT

Introduction

53. Original estimates made by the Technical i.ission were based uponequipment prices during the late summer of 1950. Since that time priceshave increased on the average about 201%. Accordingly the original outsidleesbimate of .;1112 000 required revision. and to assure of a reasonableallow-ance for contingencies, a newJ outsidelestimate of 4,500,000 foreignexchanre has been established. i'io increases have been made in the origirnallocal currency estimates.

services on equipment installed by manufacturers' crevws, are as follows:

(A4) Addiso iAk.a ee,hrl zs

T+Am Fo-C2; re15 igrrln Exch..': T-I 44'.A4..rJr TT C 4

(1\ C er,ltral rffice P t .4CU.I) ".,I On ===IL

(2) Outside Plant 50,000 403,000k.3 Ouuscrib,-r P' 441n 50,000 25,000(4) Buildings and Furnishings 15,000 20,000(5) S-upply &C !ti.fCint C..L±UiiC5e _5).000 ____

(B) Provincial System

Itemi Forei,:n Exch.U.S' Local Currency U.S;

(1) Long Lines Ext.& Rehab. $230,000 ,$355,000(2) Toll & Carrier Plant (11) 1l0,000 100,000(3) City Telephone Systems 80,000 100,000(4) Small Community Stations 90,000 120,000(5) H.F. Radio Stations 70,000 70,000(6) V.H.F. Radio Links (mj) 80,0OO 85,000(7) Domestic Telegraph System 20,000 ----(8) Bldg.& 'Furn. (Addis only) 10,000 100UU0(9) S & LI Facilities 40.000 _________---

Totals ;-,800,00 9ic40,000

Ttmn Forei7n 7 t^I,,- UTT L u - T1 '

(2) Radiotelegraph Rehab.ar.d~ LA.Jl,en 10,00 ---

(3) Antennae 15,000 5,000(4) B d ° 4- 7 1±.fishir.gs 10,000 lo,oo(5) S & i Facilities 5.000 -----

Totals '3100,000 '15,000

(IJ) I i Js celllaneous Ulob Constructbion )

± er £'ore in E xcn.- u s Local Currency -u.

(1) Training Schooi 935,000(2) Foreign Profess.Services 175,000 225,000(3) Contingencies ±'vu.uuu

Totals ,uuu $260,000

Sum Totals i.i.500.000 {;'Al.200.000

. .1 -, , - 7

Consolidated Total . ',2j7rnnlnn = Tth '750 nnn

Ialotes on above dstimctes:

(a) Figures do not include taxes.(b) `ransportai-Lon charges fro.[ njibou--i tI-, are lc currency,

(c) Figures given are outside maxirma and subtotals are subject to

(d) It is assumed that forei-n personnel ,.;ill receive 40%,' of theirexTDerises arndI sa-la-ries in fcorei- Crl ex,ch.1,ange.

(e) "11" means installation will be largely effected by manufacturers'±insfial.lat±io cr-.is.

(f) Where buildirg construction or rehabilitation is not specificallyShl-u it is included in the system figures.

Pre-sent Plant Apnraisal

55. Ho careful appraisal of present plant of the P.T.T. system wlas made.~~~~~~~~~~~~~~ - - . .- - 1 1 .- 1 I , . - , - n -- - I -Oln the basis of present prices, assuming one-Lniru lile cQnsumed and cuio-

sidering pre!sent conditions, estimates on significant items are:

(a) Long Lines ',?2,250,000(b) Addis Telephone System 250,000(c) Addis Radio Stations 100,000(d) Local 'adio-Tel. System .Til

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(e) Buildings and Land NTil *(/ Splies±. CZ & u,ment 50.000U

-1 &n ^n rnr - 1',±t 2'/ /.' r n-nJ.Ot,t.L. "?4 j O)VJ,UUk) J1L'fl, )OO,U

(* -Tit.Le niotu lield luy- P.T.T.)

Revenues and Expenditures

56. The revenues-expenditure situation of the nevi Authority v.rill deDendupon a nw,u,ber of factors which can only be roughly approximated at this --ime.One of the largest influences will be the ability of new mana-emernt.,Another vvill be the economic condition of tlhe Empire 3 - 5 years from noiv.A third will be the public reaction to sizable rate increases vwhich areproposed for the hddis Telephone System (25,j) and Provincial System (iO0s)Estimated revenues for 1955 (1 - 2 years after the new system is completed)are as follow-s:

(a) Addis Telephone System E4,00O,000(b) Provincial System 500,000(c) International System 600,000(d) Government Lease of Circuits

for Broadcasts 500.000

Total '')2,000,000

Everything else being equal the revenues should improve with each succeedingyear after 1955. Expenditures are extremely difficult to estimate, sincepast experience provides no reasonable criteria. Comparable telecoimmunica-tion activities show an average operating ratio of about 805o.. On thisbasis the annual expenditures wvould be E',1,600,000 leaving E("400,000(U.S. C',160,000) available for debt service. Attention should be drawm tothe fact that without the revenue of E,500,000 from government use of theciruiit.s Pcr broanndrst programs; the Authority i-rould suffer a deficit.

Schedules

57, It, may be estimated that it viill be about July 1951 before theAuthority is organised and in position to place orders for equipment.Tittle enuipnment v,ill be available in less than a year. Accordingly largerequirements for forei-n exchange will not be needed before July 1952 a,ldallotmen-ts i,rill 'e about evenl,y spread over two years from then. The localcurrency requirement of E1,000,000 for the first year of construction isnowr on deposit in J RState Banl- of Ethi onia This earmarkedc amouint is,according to the draft charter approved by the Ethiopian Government, to bep + he newn Aut>. ity as cp+ a soon as the. Aufthority iq establishedr,

An additional capital payment of E'l,000,000 will be made one year from thedate of the charterts proclamaton and a final payment of E n,r000,000 nn illbe made two years from such date.

i RI TREA

ANGLO-EGYPTIAN SUDAN ( E SELASSIEAU AW

)ADIREMOZ. AXNAD ABI .

ME-.TAOA7 7 IMAKALE

/ AMAAR RIGALEjJ oEU

DEREWGHE SAMIAEEN

(METEMA ~~~~~~ .JSAMIRE. ~~~~~~MAl CEW ASA/ -

WOLIDA~ L0AR .8 I.j1~~~~ ~SOCATA SIUWIKLM .(U5SA.4

GOGORO ALOMAOTA ZEU.. ....... so~~~~~~~~~~~'.ZE U

I DTABON~ OEA SAR.E 'L AA

BO4JAM 'AHAR GA MOICHA \OLDIA ~ ~ F E C~

DANGELA EILAIFDI~

/ .~~~~~~~S KIDAME 2MOhIAISMAILZAND/" SE~~~~~~LASSIE BER DESE BIATI ... _.

OKURMAI< FENOTA ~~~~~~~~~~~~~~~~~CMBOLTC.AK" AISHA 7 ~

L ENKTM NA./FUAAWA ',

GRIDAMI MUUI~~D MA

MENDI ~~~~~~~~~~~~~AAWAN RAW/\

j KOS . ...~~~~~~~4 **5 BI WOLRHAIAWA ARGISGORE \~~~~~~~ SAQA -~~~~~~~ ,4///14~~~DA FUGANAABRR

KnFIA SAC S0AELA../

/A ~ ~ ~ GTH oOG DAGANBUR, i l

GOGGETTI ~ GOB

C 'BULK! ' CHENCHA~~~~~~~~~ADMioTCHGETCHA T~~~~DULO ,

V GIMEFtA I 2. * G. A.. / . -. -....... >'

........ AVALLO / NE...L.IMAGALO . Ir&R &R

MAGI/ ~ AA. / CHEE. /IHA

N. / / I {~~ILL

-BAGO OLA~~//

KENYA N / / SOMALIAYVALO NGHtL N~~~~~~~~~~~~~~ AM R ~ ~ /

MOYALE'

TFI1 FirnRAAI ImIrATICI IDI AM ACZ DQnDrCrr) DV TUC'I LLI.'.J~JIVIIVI~dI '4I~./~I I',JI I L..r1%I '4 jPN%J I I % %,JI ' .J% LJ . Li I I I IL.

TECHNICAL MISSION TO ETHIOPIA

-- NEW LINE TO BE CONSTRUCTEDO...... PROVINCIAL BOUNDARY

~- VERY HIGH FREQUENCY RADIO LINK * PROVINCIAL CAPITALS

-z.-RADIO TELEPHONE STATION OTHER IMPORTANT TOWNS