While the Global Financial market seems to be gloomy with its recent financial crisis, the telecom sector seems to be not in a loss as far as availability of the credit is concerned. The private sector funding arm of the World Bank, the International Finance Corporation (IFC) will provide a $100 million (Rs 460 crore) loan to Idea Cellular in order to provide services in Bihar and would help to strengthen its national long distance telephony network.   

Managing Director of Idea Cellular Ltd, Mr Sanjeev Aga said, “IFC’s investment will provide the much-needed long-term funding that many companies in India find difficult to access, while helping expand the local telecommunications infrastructure. Following our recent launch in Mumbai, we will soon be providing services in Bihar, and are grateful to IFC for helping achieve this goal.”  

The IFC Director for Global Information and Communication Technologies, Mr Mohsen A. Khalil said, “Improving communications infrastructure creates opportunities for many people and businesses in India, particularly in underserved areas such as Bihar.”  

The Bihar project is all about the development of a project that will establish Pocket Public Calling Offices to deliver mobile phone-based communications and other value-added services to underserved rural communities and the urban unconnected poor in India. 

A similar investment has been made by Emirates Telecommunications Corporation (Etisalat) to acquire approximately 45 per cent of Swan Telecom Private Limited, one of the companies which had recently got the licence for offering mobile services was provided $900 million by the former. Swan Telecom holds Universal Access Service Licences in 13 telecom service areas in India but does not have a single subscriber, making it the first deal of its kind. Other new players, including Unitech and Datacom, are also expected to get investors over the next 2 months.  

In May this year, Asian Development Bank also announced a loan of $150 million to GTL Infrastructure for developing rural telephony in India. While companies are expanding their networks it’s indeed a welcome gesture as distances are being reduced and connectivity being enhanced thus better communication with the rural pockets.