P4 gets massive foreign loan to fund broadband project

"This is the largest foreign investment in Poland this century. In total, we have already acquired euro 1.1 billion of financing, which fully assures the execution of the business plan," said P4 president Chris Bannister.

The funds will be earmarked for the development of broadband wireless internet access, and the company hopes to cover 75% of the population with the service within three years.

"This is a smart move. Improvement of the operation of the network is a must for the operators, which also compete with good quality internet access from cable television networks. Wireless internet is the operators' second arm. It has a very large potential in terms of increase in revenues," said Krzysztof Dzięcioł of Polska Telefonia Cyfrowa, the Era network operator.

Play, which currently has losses greater than its revenues, hopes to generate zł.800 million in revenue this year, up from zł.235 million at the end of 2007.

The operator hopes to break even in 2010, and is considering a debut on the bourse within two years.

Source: Puls Biznesu