This operation allows the reinforcement of the relationship between the two institutions which has continuously developed over the last 15 years. The PT Group is proud to be able to count on the BEI as a strategic partner in the financing of communication infrastructures which now belong to TMN and whose continuation will lead to the introduction of new technologies, UMTS and the upgrading of previously developed systems, GSM/GPRS which will be able to have a more advanced technological support.
The project now presented by TMN aims at improving the quality of the mobile network coverage currently available, allowing for an increased circuit and network coverage as well as widening its available service range, which will in turn be another important step in Portugal to make the information society more effective.
The characteristics of the project satisfy the BEI general objectives as an institution that supports economical and social development and it not only guarantees an improvement in the quality of infrastructures that already exist in telecommunications (fixed and mobile networks) but it also ensures the diffusion of information access or in other words, that the most advanced communication networks will be able to reach everyone which is also an objective for the Information 2010 Initiative (I2I).
This financing corresponds to approximately 50% of the value of investment foreseen for the development of UMTS and GSM/GPRS networks until the end of 2006. The investment in the mobile network plays an important role in the PT Group investment programme for the next years.
With the signing of this agreement, the Portugal Telecom Group significantly improves its financial flexibility where there is a 10 year credit limit with favorable conditions which will allow it to accomplish the last objective, which within this area was foreseen for 2004 once their short and medium term financial flexibility had been reinforced.