Brazil's national development bank BNDES expects to grant 3.15bn reais (US$1.79bn) in loans to the telecommunications sector this year, the largest amount since the 3.23bn reais granted in 2000, local daily O Estado do S Paulo reported.
BNDES was reported as saying by Agencia Estado in August that it expected to lend 2.4bn reais in 2007.
The financing this year will go mainly toward network upgrades for long-term projects such as 3G communications, auctions for which are due to be awarded on December 18, O Estado do S Paulo reported.
"Growth in investments and loans is to be expected next year," the newspaper reported Alan Fischler, head of BNDES's telecoms department as saying. The amount granted in loans this year is double that granted by BNDES in 2004 and 2005 combined.
Among the top investments is that by Brazil's largest mobile operator Vivo to complete the GSM overlay on its GSM network.
The company also foresees the merger of sister mobile operators Telemig Celular Participacoes and Tele Norte Celular Participacoes (Amazonia Celular), which Vivo acquired for 1.21bn reais in August.
The country's number two mobile operator TIM Brasil has said it plans investments of 5.7bn reais for the 2007-09 period including network upgrades for 3G.
Last week, Mexico's Telmex announced it would invest 2bn reais in its Brazil operations in 2008.
Brasil Telecom has said it is investing 1.4bn reais this year, while Oi has said it is investing 2.4bn reais in 2007.
Posted to the site on 30th October 2007
Posted to: www.cellular-news.com/story/27055.php