On Telecom

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The Project involves an investment by IFC in On Telecom (or the “Company”), an early stage wireless broadband operator in Brazil. The proposed investment will consist of up to US$20 million of equity and up to US$70 million of debt financing -- including up to US$40 million syndicated or parallel loans – in a project whose total cost is estimated at US$250 million. The project consists of build out and network expansion of On Telecom’s wireless broadband operations in the interior of the State of Sao Paulo, Brazil. On Telecom is deploying a TD-LTE network to provide broadband connectivity to underserved geographical and socioeconomic segments of the market. The Company will provide wireless broadband access prioritizing urban and suburban areas with poor or no fixed line networks in place. ON Telecom’s current licenses cover 133 cities in the interior of the State of Sao Paulo and the company is exploring the possibility of acquiring additional regional licenses in Brazil. On Telecom’s offices are in leased space in Campinas, Sao Paolo in Brazil. On Telecom plans to develop over 200 new tower sites in 2014, and over 200 new ones in 2015. About one-quarter of them are to be operated by On Telecom, while three-quarters of them will involve having On Telecom equipment installed on towers operated by other companies. About three-quarters will involve greenfield towers with earthworks, and one-quarter will involve On Telecom equipment being installed on rooftops of existing buildings.On Telecom will have its equipment installed in one or more data center.