GVT allocates USD56m to extend network to 13 new municipalities

6 Dec 2011

Brazilian telecoms operator and internet service provider Global Village Telecom (GVT), owned by the French media and telecoms conglomerate Vivendi, has revealed plans to invest BRL100 million (USD56 million) to extend its network reach to 13 additional municipalities in the country, BNamericas quotes local news source Baguete as saying. It is understood the CAPEX includes rolling out the telco’s footprint to the city of Estancia Velha, in Rio Grande do Sul state, as well as expanding coverage to a dozen other municipalities, primarily in rural areas. According to Baguete, the Estancia Velha project alone is said to have cost GVT around BRL2 million, with additional coverage set to include Maua and Votorantim (in Sao Paulo state); Feira de Santana, Camacari, Alagoinhas and Simoes Filho (Bahia); Cidade Ocidental, Luziania and Senador Canedo (Goias); Caucaia and Maracanau (Ceara); and Biguacu (Santa Catarina).

The latest announcement follows last week’s statement from GVT that it has secured a BRL1.2 billion loan with Brazil’s national development bank, BNDES, to back its three-year investment programme. BNDES said the decision was driven by its desire to boost fixed broadband in the country and will enable GVT to move ahead with its three-year plan for 2011/13, as well as offer pay-TV services. The telco is one of the fastest growing players in the domestic market and provides services in more than 100 cities, mainly across the south and southeast of the country. GVT plans to invest at least BRL10 billion over the next five years, including BRL1.8 billion in 2011 alone.

Brazil, Global Village Telecom (GVT)