By The Financial District
Jun 9, 20222 min
Armenians' fixed and mobile phone services will improve as a result of a US$ 20 million loan from the European Bank for Reconstruction and Development (EBRD) to Telecom Armenia, the leading Armenian telecoms company, to finance growth, rural network expansion, and refinance existing debt.
Photo Insert: Telecom Armenia is launching a multi-million dollar network improvement program over the next seven years to upgrade fixed and mobile networks throughout the country.
Dirk Werner, the EBRD’s Director for Telecoms, Media and Technology stated that "The project is consistent with the EBRD’s two strategic priorities for Armenia” which he highlighted as "strengthening private sector competitiveness and promoting sustainable infrastructure through commercialization and green economy transition."
Telecom Armenia is launching a multi-million dollar network improvement program over the next seven years to upgrade fixed and mobile networks throughout the country, coverage will also include its rural areas.
Hayk Yesayan, Team Telecom Armenia’s CEO and co-founder said in a statement that "This funding will significantly speed up the region's best 25 GB/s Next Generation Network construction. Bringing this network to life is our strategic project. As part of the building process, we are going to connect our mobile system to the new fixed broadband infrastructure and greatly increase the quality of mobile and fixed communications throughout all Armenia.”
The investment follows the dreadful Covid-19 pandemic, which highlighted the importance of faster and more reliable internet connections.
The project supports the expansion of 4G mobile networks as well as the rollout of a cutting-edge fiber-to-the-home network across the capital Yerevan, secondary cities, and rural areas, increasing digital connectivity and competitiveness of Armenian businesses while also making the network greener and more energy-efficient.
"We welcome our long-term partnership with the EBRD, especially given the reduced investor appetite amid global developments. This support will enable us to accelerate our capital investment program and expand and upgrade both our fixed and mobile networks and improve service quality to both individual subscribers and business clients, which will spur competitiveness, innovation, and economic growth in Armenia,” added Aleksandr Yesayan, Team Telecom Armenia’s Chairman and co-founder.
Telecom Armenia is the leading fixed-line operator in Armenia and the country’s second largest mobile operator. It was acquired in October 2020 by telecom entrepreneurs Hayk and Aleksandr Yesayan.
The project’s refinancing component will be used to refinance Telecom Armenia’s existing debt, incurred during the company’s leveraged buyout in 2020, and simplify its capital structure.