Summary of Proposed Investment
Project Number
10628
Company Name
Altice Hispaniola, S. A.
Date SPI Disclosed
Mar 26, 2002
Country
Dominican Republic
Industry
Telecommunications and Technology
Projected Board Date
Mar 22, 2002
Status
Completed
Sector
Mobile Telephony
Department
WBG Digital and AI
Environmental Category
B - Limited
Previous Events
Approved : May 3, 2002
Signed : Jun 28, 2002
Invested : Apr 2, 2003
Project Description
FTD is one of four cellular operators in the Dominican Republic. The company launched commercial operations on 17 November 2000 eight months after France Telecom purchased a 86% stake in Transmisiones y Proyecciones S.A. (TyP), a local company which was originally granted a telecommunications license in 1996. Following the renaming of TyP to France Telecom Dominicana, France Telecom transferred its entire stake in TyP to Orange S.A. As of November 2001, FTD had over 220,000 customers and a network that covers approximately 95% of the country''s population.
The Dominican Republic telecommunications market is currently characterized by low national penetration rates and long wait lists for fixed lines. Fixed line penetration in the Dominican Republic, at 10.5%, is below the 14.7% average for the Latin America and Caribbean region. Although cellular service was introduced in 1987 and the country''s market is currently served by 4 mobile operators, the Dominican Republic''s 13.9 % mobile penetration rate is still low compared to that of other countries in the region. The project will help increase wireless penetration by serving new subscribers and spurring increased competition. Furthermore, the project will introduce new value added services for mobile telephony as well as offer new wireless hi-speed data services to local companies and SMEs and the Dominican population at large.
By increasing access to reliable and affordable telecommunications in the Dominican Republic, the project will benefit the development of almost every sector of the economy and contribute to sustaining the country’s economic growth. Furthermore, the introduction of new customized services and technologies, that specifically target local companies and SMEs, will contribute to the development of private sector enterprises. In addition, the project will create direct and indirect jobs in the Dominican Republic. Many of the position created, especially within FTD, will involve technical or managerial training. The project will therefore support the building of Information and Communications Technologies human capacity through the creation of high-tech jobs.
On a broad scale, IFC’s presence will help demonstrate to other potential investors that longer-term financing is available in Dominican Republic on a project finance basis for non-export driven projects. On a project-specific scale, IFC’s credibility and umbrella will enable the Company to secure the funding necessary for it to complete the project
The Dominican Republic telecommunications market is currently characterized by low national penetration rates and long wait lists for fixed lines. Fixed line penetration in the Dominican Republic, at 10.5%, is below the 14.7% average for the Latin America and Caribbean region. Although cellular service was introduced in 1987 and the country''s market is currently served by 4 mobile operators, the Dominican Republic''s 13.9 % mobile penetration rate is still low compared to that of other countries in the region. The project will help increase wireless penetration by serving new subscribers and spurring increased competition. Furthermore, the project will introduce new value added services for mobile telephony as well as offer new wireless hi-speed data services to local companies and SMEs and the Dominican population at large.
By increasing access to reliable and affordable telecommunications in the Dominican Republic, the project will benefit the development of almost every sector of the economy and contribute to sustaining the country’s economic growth. Furthermore, the introduction of new customized services and technologies, that specifically target local companies and SMEs, will contribute to the development of private sector enterprises. In addition, the project will create direct and indirect jobs in the Dominican Republic. Many of the position created, especially within FTD, will involve technical or managerial training. The project will therefore support the building of Information and Communications Technologies human capacity through the creation of high-tech jobs.
On a broad scale, IFC’s presence will help demonstrate to other potential investors that longer-term financing is available in Dominican Republic on a project finance basis for non-export driven projects. On a project-specific scale, IFC’s credibility and umbrella will enable the Company to secure the funding necessary for it to complete the project
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Raoul Fontanez, CEO
France Telecom Dominicana
23 Victor Garrido Puello St
Orange Building
Piantini
Santo Domingo
Dominican Republic
Fax: (809) 859 1117
Web: http://www.orange.com.do
France Telecom Dominicana
23 Victor Garrido Puello St
Orange Building
Piantini
Santo Domingo
Dominican Republic
Fax: (809) 859 1117
Web: http://www.orange.com.do