Indian Operator Secures Funding to Expand Rural Coverage

IFC, a member of the World Bank Group is providing a US$100 million loan to Indian GSM network operator, Idea Cellular to enable the extension of services to Bihar, one of the few states in India without a well-developed telecommunications network. The loan will also help establish a national long-distance network to meet growing demand for services.

"IFCÃ's investment will provide the much-needed long-term funding that many companies in India find difficult to access, while helping expand the local telecommunications infrastructure," said Sanjeev Aga, Managing Director of Idea Cellular Limited. "Following our recent launch in Mumbai, we will soon be providing services in Bihar, and are grateful to IFC for helping achieve this goal," he added.

Mohsen A. Khalil, IFC Director for Global Information and Communication Technologies, said, "Improving communications infrastructure creates opportunities for many people and businesses in India, particularly in underserved areas such as Bihar. IFC is pleased to support IndiaÃ's private sector in advancing the governmentÃ's goal of doubling mobile penetration by 2010."

By supporting a leading telecommunications service provider such as Idea, the investment will promote competition in the sector and expand the availability and affordability of services for consumers. It is also expected to help increase telephone penetration in Bihar from less than 8 percent in 2008 to more than 20 percent by 2012. IFC and Idea are developing a project that will establish Pocket Public Calling Offices to deliver mobile phone-based communications and other value-added services to underserved rural communities and the urban unconnected poor in India.

Posted to the site on 24th September 2008