French telecoms operator Iliad has signed a €200m (US$250m) loan agreement with the European Investment Bank (EIB) to help fund the rollout of high-speed broadband networks.
The nine-year loan, which can be activated any time within the next year,…
French telecoms operator Iliad has signed a €200m (US$250m) loan agreement with the European Investment Bank (EIB) to help fund the rollout of high-speed broadband networks.
The nine-year loan, which can be activated any time within the next year, follows on from a similar €150m (US$188m) loan agreement between the parties signed in 2010.
Paris-based Iliad and the EIB said in a joint statement that 65% of the proceeds of the new loan will be used to deploy fibre optic networks based on fibre to the home (FTTH) technology. The funds will also help the company, which operates under the Free brand, to extend the capacity and reach of its ADSL2+ network nationwide, with a particular focus on less populous areas, and promote unbundling.
EIB vice-president Philippe de Fontaine Vive described supporting the deployment of high-speed internet is a key component of the European Union’s digital agenda.
“Our goal is to foster the development of a competitive European economy based on the knowledge triangle of education, research and innovation.”
Founded by Xavier Niel in 1999, Iliad is now France’s second-largest broadband operator with more than five million subscribers. The company launched its low-cost mobile service in January this year, prompting a veritable price war with the nation’s three other providers: France Telecom-Orange, Vivendi-owned SFR and Bouygues Telecom. Iliad/Free had 2.6 million mobile subscribers as at 31 March 2012.
