``Measures will be taken soon to allow investors to play a role in the expansion and development of telecommunication services,'' Girma Birru, Minister of Economic Development and Co-operation, told reporters.

He said the government was looking for a strategic investor to buy a stake in the state-owned Ethiopian

Telecommunications Corporation (ETC), but did not give any other details.

Only 300,000 telephone lines operate in Ethiopia -- a nation of nearly 60 million people, a ratio which compares poorly with other developing countries.

ETC was established in the 1950s with expertise from Swedish firm Ericsson, but has since been starved of investment. An estimated 150,000 Ethiopians are on a waiting list for a telephone line.

The government has come under pressure from foreign donors such as the World Bank and International Monetary Fund (IMF) to loosen its strangehold on the sector.