Via One Europa Telecommunications

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Project Description This PSD relates to a historical Bank project approved some years ago, and does not represent a new approval, or allocation of new funds.  Disclosure of this PSD was deferred in accordance with the transparency framework in place at the time, but due to an administrative oversight, it was not subsequently disclosed. In September 2008, the EBRD entered into an equity investment of EUR 10 million in Class A Common Shares in Via One Europa as a stand-alone regional commercial venture alongside Vision Global, an emerging markets private equity house. Project Objectives The project aimed to serve as Regional commercial launch of Octilla and World Phone, related software applications and point of sale distribution network, focussing on Croatia, Serbia, Kosovo, Romania, Bulgaria, Montenegro, the Former Yugoslav Republic of Macedonia and Poland. Transition Impact The project attributed transition impact potential to: skills transfer for development of a new skills base in the EBRD region, and the demonstration of a new product capable of increasing competition in the market, particularly in relation to the charges associated with cross-border mobile calls. To implement the project, the Client’s software development team in Serbia was expanded, and evolved from its focus on Microsoft.Net development toward development of software for the Apple iPhone and Google Android platforms, supplementing skills which were scarce internationally, and non-existent in the region at the time.  This was anticipated to encourage IT professionals to remain in the country. Further, in order to enhance connectivity with the large number of expatriate workers, the Client’s provision of reduced rate international calling (without competing with operators for the local call element) was intended to lower the cost of international calling and connectivity for those hoping to keep in touch with family and friends working outside their home country, and encourage capped roaming charges and bundled pricing plans by existing mobile operators, reducing the overall cost of this service in the market. Additionality Given the high level of uncertainty for innovative investments of this kind in the region at the time the Bank’s participation in this early stage investment in a new sector was highly additional. Client Information Via One Corporation was a privately held company registered in the United States.  Through acquisition and organic development at its software development unit in Serbia, Via One Corp assembled two proprietary software platforms to deliver cost efficient international mobile communications and a range of mobile-based services, targeting high volume cross-border users such as business travellers.  This transaction was planned to permit the Via One group to launch its mobile communications and transaction payment services through its Hungarian subsidiary Via One Europa, the group’s exclusive operating and sales company in Central and Eastern Europe, the CIS and Turkey. Environmental and Social Summary This project was classified as Environmental Category C, and was unlikely to be associated with any significant environmental issues.  ViaOne publicly committed to adequate environmental management in its corporate environmental policy, and was required to comply with national and EU environmental, health, safety and labour standards as a requirement of the transaction, in addition to its obligation to submit an annual environmental report to the Bank. Technical Cooperation n/a – none