Team Telecom Armenia raises $45 million in funding

PanARMENIAN.Net - To improve access to high-speed internet and support a strong digital economy in Armenia, Team Telecom Armenia raised a total of $45 million from international financial institutions, IFC and EBRD, and Ameriabank. Team Telecom Armenia will direct this funding for the construction of the region's best 25 Gb/s Next Generation Network in cities and villages of Armenia.

Commenting on the launch of the partnership, Chairman of the Board of Team Telecom Armenia Aleksandr Yesayan noted, “We highlight the trust in ourselves, especially given reduced investor appetite amid global developments. This support will enable “Team” to accelerate the capital investment program and expand and upgrade both fixed and mobile networks and as a result. improve service quality to both individual subscribers and business clients, which will spur innovation and economic growth.”

The financing package will help the company to improve both the coverage and service quality of its telecom networks, including expansion of the 4G mobile network and rolling-out the NGN fiber access network across the country. As a result of the project, at least 1.1 million mobile subscribers will be provided with faster and higher-quality internet connections, and more than 450,000 households will be provided with access to faster fiber access technology.

Cheryl Edleson Hanway, IFC’s Regional Senior Manager for Infrastructure and Natural Resources, said: IFC’s investment will support better mobile phone services and faster internet in Armenia, spurring digital economy, trade and entrepreneurship, accelerating post-COVID recovery. By supporting Armenia’s digital infrastructure, we also hope to create an enabling environment for additional investments and job creation opportunities in the country.”

As a result of implementation of the project, Team Telecom Armenia will strengthen its position also in the field of providing data transit services to local and regional telecom operators, creating a more flexible and faster Internet infrastructure.

“Within the framework of our strategic plan, we have started and are continuing with great vigour the construction of the region's best 25 Gb/s Next Generation Network, at the end of which a separate fiber-optic cable with almost unlimited bandwidth will enter the apartments of citizens living in every part of Armenia. This will open up a wide range of opportunities to connect with global economic developments and create new products for them”, stated CEO of Team Telecom Armenia Hayk Yesayan.

The launch of the 25G-PON network is also expected to reduce energy consumption, allowing its subscribers to access high-speed Internet through a more energy-efficient telecom infrastructure.

Speaking about the motivations for joining this program, Dirk Werner, EBRD Director, Information and Communication Technologies, said: “As well as enhancing digitalisation and energy efficiency, the project is consistent with the EBRD’s two strategic priorities for Armenia, strengthening private sector competitiveness and promoting sustainable infrastructure through commercialization and green economy transition.”

Gagik Sahakyan, Corporate and Investment Banking Director at Ameriabank CJSC, commented: “In the era of digital transformation, the availability of broadband internet services is crucial for providing better connectivity to people and businesses, especially to those in the remote communities. As the leading bank in Armenia, we have joined our international partners, IFC and EBRD, to finance this strategic project for the country. It aims to develop infrastructural and technological innovation in Armenia, which will boost social development and strengthen the economic potential of underdeveloped communities. This is an investment long into the future.”