With rapidly increasing of population, the number of demands for wireless service with high data rate is highly increasing rapidly. This show that, currently the capacities of 2G and 3G are getting their saturation points. To overcome the shortage of mobile networks as well as to increase data rates and service types bring the long term evaluation (LTE) network to the area is very necessary. Being part of 4G, Long Term Evolution (LTE) is the evolution of 3G counterparts, to provide a seamless connectivity between two end User Equipment’s (UEs) with peak data rate. In the world of present day wireless communication, planning and optimization of a cellular network is the most significant stage in its life cycle. For radio network planning, a cautious optimization of the network is essential. The explanatory information is gathered and useful planning philosophies are used to get an optimum network, to increase the network performance, while diminishing the time and costs required for network implementation. However, LTE radio network planning and optimization is very challenging adds to certain level of complexity in the overall activity in terms of proper resource management and capacity as well as coverage requirement fulfillment. Thus, proper radio network planning and optimization is very critical issue especially in new scenario of densely populated cities. LTE radio network planning and optimization involves consideration of basic network requirements in terms of coverage, capacity and quality of service. In this study, the significance of such fundamental requirements has been demonstrated using mathematical analysis as well as computer-aided simulations (ATOLL) in order to disclose the LTE’s radio network planning approaches for the operator and local practicing engineering in the planning area. The study considers Dire Dawa city, Ethiopia, in view of new deployment scenario for the city. After analysis of the data taken from the EthioTelecom both coverage and capacity dimensioning were performed. The study resulted in target area coverage prediction and capacity evaluation in terms of future subscriber growth. To this end, result show that better network coverage with as optimum network capacity can be achieved in due consideration of network parameters starting from the pre-planning stage till the detailed planning phases in combination of pre optimization requirements and performance analysis at the final stage. As there is a parallel needs in the other parts of the country, these findings can be used as baseline for new build scenario as well as expansion of the existing LTE network.