IFC, a member of World Bank, has completed a 6-year project to deliver affordable broadband access to more than 10 million people in 31 developing countries.
IFC assisted satellite operator O3b Networks to close an investment gap by making a $10 million senior loan, providing $60 million in mezzanine financing for its own account, and enabling an additional $170 million in parallel loans by other institutions.
“Satellite technology can bring affordable broadband to people and businesses in emerging telecom markets, supporting all economic sectors,” said Atul Mehta, IFC Director of telecommunications, media, technology, venture capital, and private equity funds.
This kind of assistance is important to bring down the broadband tariffs. The price of broadband in Africa is over 200 times expensive than in the United States. Research shows that a 10 percentage point increase in fixed broadband penetration could result into 1.38 percent increase GDP growth in developing countries.
O3b Networks’ satellites provide high-speed internet to underserved regions of the world at a much lower cost compared to traditional geostationary satellites. To date, O3b has placed 12 satellites in orbit.
Countries that have already benefited from services include Timor-Leste, Papua New Guinea, South Sudan, Somalia, Peru, Samoa, Palau, Solomon Islands, Madagascar and the Democratic Republic of Congo.
Over 4 million people and businesses benefit from this satellite-based broadband system in the Democratic Republic of Congo alone. The satellite broadband network is providing broadband service throughout the DRC via Raga Sat, an internet service provider in Africa.
IFC’s commitments in telecom and information technology totaled $673 million in the fiscal year ended in June 2016, including funds mobilized from other investors.
editor@telecomlead.com
