Netcity Telecom just got from BRD and BCR an increase of the EUR 36 million club loan obtained at the end of 2016, through a new facility of EUR 10 million, a press release informs.
The loan facility will be used by the company to supplement the over EUR 20 million already granted from its own funds to continue the works on expanding the underground fiber optic infrastructure in the next 3 years.
”Thus, Netcity Telecom estimates that the private investment will exceed EUR 70 million by 2020. The length of the network will double to over 1,800 km, and then to grow every year, depending on the needs of Bucharest. Due to network expansions, the revenues of the Bucharest City Hall resulted from the fee paid by Netcity Telecom will double to over EUR 2 million per year,” the release reads.
The network is in full extension to areas in the north, west and central part of Bucharest – Calea Giulesti and Calea Crangasi, Ghencea Boulevard and Calea Calarasi, Strada Traian, Mircea Vulcanescu Blvd., as well as adjacent areas.
10 years ago, the company won the contract for the development of the underground fiber optic network in Bucharest, which it received in a 49-year concession in exchange for an annual fee of 12 percent of the revenues earned from cable operators.