The Hindu Business Line : IFC extends $100-million loan to Idea Cellular

New Delhi, Sept. 24 Notwithstanding the slump in the global financial sector, Indian telecom sector seems to be facing no crunch in credit availability.

IFC, a member of the World Bank Group, on Wednesday announced that it has given a $ 100 million loan to Idea Cellular to help the company expand its network. The loan will be used by the telecom company to launch cellular services in Bihar and roll out its national long distance telephony network.

Mr Sanjeev Aga, Managing Director of Idea Cellular Ltd, said, “IFC’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. Following our recent launch in Mumbai, we will soon be providing services in Bihar, and are grateful to IFC for helping achieve this goal.”

Mr 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.”

Bihar project

IFC and Idea Cellular 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.

This comes close to a $900 million investment by Emirates Telecommunications Corporation (Etisalat) to acquire approximately 45 per cent of Swan Telecom Private Limited, one of the companies which had recently got the licence for offering mobile services. Swan Telecom holds Universal Access Service Licences in 13 telecom service areas in India but does not have a single subscriber, making it the first deal of its kind. Other new players, including Unitech and Datacom, are also expected to get investors over the next 2 months.

BT study

A new study, sponsored by BT Global Services, has revealed that business confidence in emerging markets continues to defy the gloomy economic outlook. A huge majority (87 per cent) are optimistic about prospects for revenue growth in the next two years. The findings point to a new spirit of collaboration between domestic firms and foreign multinationals in order to share the scarce skills required to drive growth.

Mr Francois Barrault, CEO, BT Global Services, said, “Emerging markets are bullishly optimistic about their economic prospects, in contrast to much of the developed world. Both domestic and multinational firms bring advantages to market and collaboration, rather than traditional cut-throat competition, could unlock value for both organisations.”

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