TIM Peru S.A.C.

completed

The project consists of the expansion and upgrade of TIM Peru’s cellular network, the third largest in the country, to increase capacity and population coverage, improve quality and reliability, and offer more value added services. The company acquired its mobile license in May 2000 through a competitive bidding process and launched initial service in January 2001. As of end-August 2002, TIM Peru had over 300,000 subscribers.TIM Peru intends to expand the availability of mobile services to a larger part of the population, particularly through the aggressive use of prepaid services, which are typically more affordable. Further, the increase in mobile penetration resulting from the expansion of a third operator will foster greater competition in the Peruvian telecommunications sector, thereby increasing access to reliable and affordable telecommunications and other value added services.IFC’s role is to provide long-term financing to the company at a time when financing flows to telecommunications companies in emerging markets have receded due to a global downturn in the sector.