Press Releases

Budapest, December 13, 2013 16:00

Magyar Telekom has signed today a long term financing agreement in Budapest with the European Investment Bank (EIB) to finance its future fixed line and mobile broadband network development projects. The contract was signed by Chief Executive Officer Christopher Mattheisen, Chief Financial Officer János Szabó and EIB’s Vice-President László Baranyay. Magyar Telekom is taking the loan amounting to EUR 200 million (ca. 60 billion HUF) from EIB through Deutsche Telekom AG as the financial intermediary. The loan is denominated in HUF with a tenor of 5 years.

The aim of taking the loan is the further modernization and development of Magyar Telekom’s telecommunications networks, as a result of which the nationwide accessibility of advanced fixed line (VDSL, FTTH, ED3) and mobile (3G and 4G) broadband infrastructure will increase significantly. The network development projects to be financed from the loan will take place in a three year period from 2014 to 2016. In addition to increasing coverage, the projects will expand the capacity of fixed line and mobile networks and develop the IT systems involved so that they are able to cope with data traffic increase expected in the coming years due to the fast growth in the number of users and 4G enabled smart devices, also contributing to further improvements in service quality and network security.

Christopher Mattheisen, Magyar Telekom’s Chief Executive Officer, said on the occasion, „We reached a strong leadership position in the fixed line and mobile broadband market due to our quality services and innovative product offering. Our network developments to take place in the years to come will promote the convergence of fixed line and mobile services and enable us to satisfy the dynamic growth in market demand for data and multimedia services. The increased coverage of advanced telecommunications networks significantly expands the accessibility of Magyar Telekom’s unique, integrated service portfolio. The continued expansion of cutting edge broadband infrastructure also contributes to the improvement of Hungary’s competitiveness and the enhancement of digital equal opportunities.”

János Szabó, Magyar Telekom’s Chief Financial Officer, emphasized, „We have arrived at yet another major milestone in our longstanding relationship with EIB. This agreement is another proof that the successful cooperation between Magyar Telekom, Deutsche Telekom and EIB continues, which as a result of the new network development projects is expected to bring further benefits for Hungary’s infocommunications market and the consumers as well as the entire national economy.”

László Baranyay, EIB’s Vice-President responsible for lending operations in Hungary, stated: “The EIB loan will help to substantially increase the high speed fixed line and mobile broadband coverage of Hungary’s population. The availability of advanced and high speed telecommunications services is crucial for further development of the Hungarian economy and a better utilization of the country’s potential, particularly in the rural areas.”

The Luxembourg based European Investment Bank is the long-term lending institution of the European Union and is owned by the EU Member States. The EIB makes long-term finance available for sound investment in order to contribute towards EU policy goals.