ETHIOPIA TELECOM OPENING UP

PHONE MONOPOLY is big prize in Ethiopia sell-off.

In the weeks since Ethiopia announced sweeping privatization plans after decades of state control, foreign businessmen have been beating a path to the Belachew Maekurria's office.

''Everyone is here. MTN is here, Safaricom. I mean everyone is coming,'' the new head of the Ethiopian Investment Commission [EIC] said of the stiff competition to enter the previously off-limits telecom sector.

'' A lot of them including U.S., by the way,'' Belachew, an affable lawyer who is the first port of call for foreign investors, said with a smile following an evening meeting with an executive from Kenyan mobile operator Safaricom.

Of the industries facing privatization - the government will also open up Ethiopian Airlines, the state logistics firm and the power monopoly to private investment -

Ethiopia's state telecommunications monopoly is the prize because of its huge protected market.

But the form liberalization takes and the speed with which it is carried out will hinge on competition between the government's two top priorities : raising foreign exchange and  creating jibs.

The impact of the reform push in sub-Saharan Africa's second most populous nation could be huge for multinationals, which are currently restricted to a handful of sectors.

International telecommunications firms in particular are excited at the prospect of entering one of the few African telecom sectors -one that serves a population of 100 million - still protected by a state monopoly.

''Technology companies and telecoms companies want to get in as quickly as possible. It's a rare thing,'' Andrew Kitson, head of telecommunications research with BMI Research, told Reuters.