Brussels, 01/07/2009 (Agence Europe) - The European Investment Bank (EIB) is lending €115 million to Mobile TeleSystems OJSC (“MTS” - NYSE: MBT), for the upgrading and further development of mobile networks to increase the quality and accessibility of broadband services in the Russian Federation. This is the first EIB loan supporting a telecommunication project under the Bank's mandate covering financing in Russia, Eastern Europe and Southern Caucasus.
The project, which is jointly financed by the European Investment Bank, the European Bank for Reconstruction and Development and the Nordic Investment Bank, is focused on the rollout of 3G/UMTS-based mobile broadband services in the Russian Federation in terms of the purchase and installation of equipment and software licenses for UMTS-based 3G access and core network. EIB funds will allow MTS to increase its rollout of 3G networks to additional cities in Russia in 2009. This will facilitate efficient communications through improved access to internet, multimedia and telecommunication services, thus contributing to increased connectivity and economic growth. By improving access to modern information and communications technology networks, the project will support the EIB's lending priority of promoting investment that leads to the establishment of a knowledge-based society and contribute to the development of an information society in Europe. (O.L./transl.jl)