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China's ZTE announced a 200-million-dollar deal with Ethiopia's state-owned telecoms group, a statement said Monday.

The agreement signed Saturday with Ethiopia Telecom Corp proposes to build up the east African nation's fledgling telecommunications network, a statement issued by ZTE to the Shenzhen bourse said.

The signing includes the first phase of fibre transmission backbone, expansion of mobile phone services and the expansion of wireless telephone operations.

State-owned ZTE will install 1.2 million mobile telephone lines in Ethiopia's capital Addis Ababa and eight other towns, it said.

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