Netcity Telecom, the company that operates Bucharest’s fiber optics network, has secured a new EUR 10 million loan from local banks BCR and BRD, which have financed the company with another EUR 36 million in the past.

The new loan will cover the costs for the expansion of Bucharest’s underground fiber optics network in the following three years.

The company has also allotted EUR 20 million from its own funds for the expansion work. Thus, the total investment in Bucharest’s underground fiber optics network will reach EUR 70 million by 2020.

“The network will thus double to 1,800 km after which it will continue to grow every year based on the Capital’s needs,” according to Netcity representatives.

The municipality’s revenues from the royalties paid by Netcity Telecom will also double to EUR 2 million per year. Netcity won 10 years ago the contract to develop and operate Bucharest’s underground fiber optics network for a period of 49 years in exchange for a yearly royalty of 12% of the revenues the company makes from local cable operators.

Local telecom operator Direct One took over Netcity from UTI group in February 2017.

editor@romania-insider.com