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EBRD provides MagtiCom with USD100m loan for broadband expansion

18 Jul 2016

Georgian telecoms company MagtiCom has secured a USD100 million loan from the European Bank for Reconstruction and Development (EBRD) to improve and expand its broadband services in the country’s regions. The financial support package will enable MagtiCom to acquire the fixed broadband infrastructure of Caucasus Online, allowing it to expand into areas outside of the capital Tbilisi, particularly in rural locations. ‘Georgia is a growing economy where the rural areas need a greater connectivity. Investing in the knowledge economy is part of the EBRD’s efforts to foster innovation in the country,’ commented Bruno Balvanera, the EBRD’s Director for Caucasus, Moldova and Belarus, adding: ‘This investment will support the development of higher quality of mobile network, internet as well as TV platform in the more remote regions of Georgia. This in turn will help to boost the local economies and the country’s telecom sector as a whole. We are glad to work with such a strong partner as MagtiCom who has extensive expertise in the telecoms segment and high corporate governance standards.’

As previously reported by TeleGeography’s CommsUpdate, MagtiCom reached a deal to acquire the retail operating assets of ISP Caucasus Online in March this year. The process of handing over the corporate and retail service assets to MagtiCom is scheduled to begin from 1 August and is expected to be completed by the end of the year. Following the integration of Caucasus’ networks and assets, MagtiCom will be able to offer a full quad-play service comprising mobile telephony and data, fixed telephony, broadband internet access and television (satellite and IPTV).

Georgia, Caucasus Online, MagtiCom

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