The 4G service, which will initially serve 400,000 subscribers, is part of a $1.6 billion deal with Huawei, Ericsson and ZTE to expand mobile infrastructure across the country.
"The 4G broadband network service shows a significant improvement in the sector and satisfies customers who are seeking an updated technology," said the country’s communication and information technology minister, Debretsion Gebremichael.
Huawei will manage the development of infrastructure in the northern region of Ethiopia, while Ericsson and ZTE are in charge of development in the south. Work in both regions is scheduled to be completed by June 2016, according to the minister.
The $1.6 billion project also aims to double 3G capacity to 60 million subscribers by the end of the year.