China to fund USD211 million Teletalk upgrade with soft loan

China’s government has agreed to provide USD211 million in loans to Bangladeshi state-run mobile operator Teletalk to develop its future 3G network, reports local newspaper The Daily Star. A visiting Chinese delegation comprised of representatives from China Exim Bank and China National Machinery & Equipment Import & Export Corporation (CMEC) met with Teletalk and regulatory officials yesterday. China will provide the ‘soft loan�?through China Exim Bank, at a 2% interest rate, sometime in the next two years. Teletalk officials said the loan repayment time could be around 20 years, whilst Teletalk would have to import all equipment for its 3G expansion from Chinese vendors, and CMEC would have the authority to select the suppliers. Recently, Vietnam's Viettel proposed an investment of USD250 million in Teletalk, although no further developments have yet been announced. Bangladesh expects to auction 3G licences once necessary regulations are finalised, which is expected in June.

Reported: http://www.telegeography.com/cu/article.php?article_id=31664