IFC, a member of the World Bank Group, today announced that it will help expand the availability of affordable mobile telephone services in India by supporting Idea Cellular Limited, a local mobile telephone company.
IFC’s $100 million loan will help strengthen Idea’s network in its existing markets and 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.
“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,” 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 India’s private sector in advancing the government’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.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC's vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.
About Idea Cellular
A leading GSM mobile services operator, Idea Cellular has licenses to operate in all 22 service areas of India, with commercial operations in 12 service areas and a customer base of over 29 million. With the planned launch of services in Bihar, Jharkhand, Orissa, and Tamil Nadu before the end of the fiscal year, Idea’s footprint will soon cover about 90 percent of India’s telephone potential. Idea is listed on India’s National Stock Exchange and the Bombay Stock Exchange. IDEA Cellular is a part of the $28 billion Aditya Birla Group. For more information, visit www.ideacellular.com or contact Rajat Mukarji at +91-11-23730133.
