IDB Invest, a member of the IDB Group, provided a $80 million loan to Phoenix Tower International (PTI) to foster the independent market for telecommunications infrastructure in Ecuador and promote a more efficient development of this sector in the country. The transaction will help consolidate a business model based on the shared use of telecommunications towers in the Ecuadorian market.
PTI Ecuador's shared digital infrastructure model will increase mobile broadband coverage and capacity to different mobile network operators in the country. This increase is especially relevant in the context of the crisis caused by COVID-19, as wireless broadband networks are experiencing a significant increase in digital data consumption and users require reliable systems due to social distancing measures (telecommuting, telemedicine, online classes, etc.).
The project is expected to improve the sector's productivity, since mobile network operators will be able to develop their mobile networks more efficiently and economically, taking advantage of the project's existing infrastructure. It will also contribute to reducing the connectivity gap in Ecuador, through the expansion of mobile broadband networks and the reduction of operator costs.
Ecuador has experienced a significant increase in broadband demand due to social distancing measures, indicating the need to close the digital divide so that people living in underserved areas can have access to services through broadband connectivity and people residing in underserved areas can cope with increased data consumption.
This agreement potentially contributes to four of the United Nations Sustainable Development Goals (SDGs): End Poverty (SDG 1), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (OSD 9), and Partnerships for the Goals (SDG 17).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Phoenix Tower International
Phoenix Tower International (PTI) owns and operates in excess of 9,000 towers, 986 km of fiber and over 80,000 other wireless infrastructure and related sites throughout the United States, Latin America and the Caribbean, and Europe. PTI was founded in 2013 with a mission to be a premier site provider to wireless operators in high-growth markets, and has been one of the world’s fastest growing telecommunications infrastructure companies since its inception. PTI's investors include funds managed by Blackstone and John Hancock.