“This partnership is a major step in ensuring a complete line of financing for our plans to extend the Netcity network in the next three years and reconfirms our long-term commitment to ensure adequate telecom infrastructure for Bucharest,” said Adrian Racasan, CEO at Netcity Telecom.
The credit facility will be utilized to supplement the EUR20 million the operator has already invested from its own sources to continue expansion works on Bucharest’s underground fiber optic network over the next three years.
The company estimates its private investment will exceed EUR70 million by 2020. The city’s underground fiber optic network is set to double to over 1,800 km. Due to expansion, the Bucharest City Hall will double its revenues from royalties paid by the telecom operator to over EUR2 million a year.
Netcity Telecom has a 49-year concession contract with Bucharest City Hall starting 2008 and pays annual royalties of 12% of its revenues.