- The loan will facilitate a total investment of €101 million in mobile telecoms infrastructure in Latvia.
- The project will provide advanced 5G services across the country, allowing more users to enjoy better, secure access to ultrafast broadband services.
- The financing supports Europe’s digital transition goals and promotes investment in telecoms infrastructure in cohesion regions.
The European Investment Bank (EIB) and Latvijas Mobilais Telefons SIA (LMT) have signed an agreement to finance the rollout of 5G technology in Latvia. The loan of €50 million will enable a total investment of €101 million in telecoms infrastructure in the country.
The project will help deliver advanced 5G services nationwide, giving more users better, secure access to ultrafast broadband services. It will support the expansion and technological upgrade of LMT’s mobile network towards creating a Very High Capacity Network (VHCN) across Latvia, in urban and rural areas alike.
As part of the project, LMT will roll out 150 5G sites in urban areas and 690 5G sites across the country. The financing will also support the upgrade of the company’s core network to 5G standalone technology, as well as investments in service platforms, business and operations support systems. It will also be used to expand the access network, decommission the 3G network and ensure a seamless transition to 5G. The project will prioritise investments in cybersecurity implementation and development to ensure a robust and secure 5G infrastructure.
“We are thrilled to sign this agreement with LMT and support their mobile infrastructure in providing advanced 5G services in Latvia,” said EIB Vice-President Thomas Östros, responsible for the Bank’s operations in the country. “This infrastructure is crucial for the digital transition and accelerating access to digital services for users in both urban and rural areas.” Östros added that the project aligns with the European Union’s Digital Compass target of achieving 5G infrastructure access in all populated areas by 2030, and promotes investment in telecoms infrastructure in cohesion regions.
“The trust shown by the EIB in LMT as a stable and secure cooperation partner in such a large and important project will enable us to maintain our position as the 5G development and innovation leader in Latvia,” said LMT President Dr Juris Binde. “We are honoured that we can begin a new stage of infrastructure development by providing public administration, the commercial sector and individual users with secure, fast and quality data services transmission, and by promoting all the extensive opportunities that 5G now provides.”
Background information
The EIB finances investments in 5G mobile networks in support of the EU-wide broadband connectivity targets of the 2030 Digital Compass. The Bank has also partnered with the European Commission through the Connecting Europe Facility, establishing the Connecting Europe Broadband Fund targeting smaller rural broadband initiatives to support digital inclusion. In 2022, EIB financial support enabled 6.6 million people to access 5G connections for the first time.
In 2022 the EIB Group signed around €300 million worth of projects in Latvia, mainly channelled into infrastructure and SMEs. Latvijas Finieris Group was granted an investment loan to expand its integrated birch plywood production facilities, Rīgas ūdens to upgrade water and wastewater infrastructure in Riga, and Citadele banka to support SMEs in all three Baltic States.
LMT is a leading mobile telecommunications operator, integrator and IT company in Latvia, currently among the world's most efficient mobile data networks. The company believes that the future is mobile-only, and builds pioneering solutions based on cutting-edge wireless technology. LMT is 5G-ready — it is actively developing technologies that could be advanced by 5G, such as smart cities, mobility, drone technologies, public safety and more.