The European Investment Bank (EIB) is providing a loan of EUR 150 million to Magyar Telekom to further develop telecommunications infrastructure in Hungary to meet the increasing demand in terms of population coverage and quality of services provided.
The EIB loan will co-finance the development of Magyar Telekom's mobile networks – 3G and Long-Term Evolution (LTE), and fixed line telecoms infrastructure (Next Generation Access, copper, cable) over the period 2010 – 2013. The project will support the roll-out of the LTE network in Hungary, and fixed broadband will enable very high speed (up to 100 Mbit/s) services for over 1 million Hungarian households.
The project supports the Digital Agenda for Europe flagship initiative under the EU2020 Strategy through further development of modern mobile and fixed line infrastructures, the key platforms for the provision of advanced broadband services. This is also in line with the EIB's lending priority of fostering the development of a knowledge-based society in Europe.
The EIB has very well developed cooperation with Magyar Telekom and its parent company Deutsche Telekom. In 2008 the Bank provided a loan of EUR 200 million to Magyar Telekom to finance the upgrading and development of mobile networks, particularly to increase the quality and accessibility of broadband services in the country.
Note to editors:
The mission of the EIB, the European Union's long-term financing institution, is to contribute to the integration, balanced development and economic and social cohesion of the Member States by financing sound investment. To support Hungary in the current difficult economic circumstances the EIB increased its lending in the country to a record EUR 1.9 billion in 2009. This year, the EIB's lending commitment in Hungary, including the current loan, amounts so far to some EUR 1.25 billion.