The European Investment Bank will provide a USD loan equivalent to EUR 60 million to Telefónica del Perú (TdP) for the provision of telephony, broadband internet, data transmission and VSAT services in Peru.
The 10-year loan concerns the purchase and installation of equipment and systems to respond to the growing communications market. The investments are expected to improve overall business productivity, promoting economic development. In addition, the project will help to transfer technology and know-how fostering foreign direct investment in Latin America.

The project will be located mainly in urban areas; nevertheless, rural areas will also benefit as lower cost telecommunications services will be made available.

By early 2008, TdP will invest in the upgrade and expansion of the different service platforms including backbone and metropolitan transmission (fibre and microwave links), access networks (wireless, copper and coaxial), digitalisation of subscriber line (ADSL), telephony switches, and internet protocol systems including next generation network, virtual private networks and satellite connections. TdP will also invest in information systems, network management systems, business and operation support systems, customer premises equipment, technical buildings, power systems and auxiliaries.

Telefónica del Perú S.A.A. is 98% owned by Telefónica Internacional S.A., a subsidiary of Telefónica S.A.

The EIB has been providing long-term support to develop the telecommunications sector in Peru. In 1997, the EIB extended a USD loan (equivalent to EUR 50 million) to TdP to finance investment aimed at adding digital exchange equipment and digital transmission links. In 2006, Telefónica Móviles S.A was granted a USD loan (equivalent to EUR 40 million) for the design, installation, commissioning and operation of a new mobile digital communication network operating in the 800/1900 MHz GSM standard.