Hungarian telecoms operator Magyar Telekom will benefit from a €200m loan its parent Deutsche Telekom secured with the European Investment Bank (EIB).
Magyar will use the proceeds of the loan to finance upgrades to its mobile and fixed-line…
Hungarian telecoms operator Magyar Telekom will benefit from a €200m loan its parent Deutsche Telekom secured with the European Investment Bank (EIB).
Magyar will use the proceeds of the loan to finance upgrades to its mobile and fixed-line networks.
The EIB said it was its twenty-second financing project with Deutsche Telekom. The bank has previously lent the German incumbent around €2.2bn.
The latest €200m will be put into infrastructure investments to increase the areas Magyar can offer its services. The investments will be made between 2014 and 2016.
The Bucharest-based telco has said it aims to boost high-speed internet coverage in regions with sufficient demand, and aims to offer 4G/LTE mobile services to 80% of the population by 2015.
EIB vice-president Laszlo Baranyay commented: “Modern high-speed telecommunications services are crucial for the further development of Hungary’s economy and better exploitation of the country’s potential, particularly in rural areas.”
Magyar originally applied to the EIB for a loan of only €75m at the start of October.
