LMT NETWORK DEVELOPMENT

The project will support investments of LATVIJAS MOBILAIS TELEFONS (LMT) related to the expansion and technological upgrade of their mobile network capacity , towards a Very High Capacity Network (VHCN). It will result in the rollout of 150 5G sites providing very high capacity and speed services (> 1 Gbps) in urban areas and 690 5G sites to expand coverage all over the country, as well as the fibre optic backhaul to those sites. The promoter will also upgrade its core network to 5G standalone technology and its service and cybersecurity platforms as well as business and operations support systems, and will continue to support the expansion of its 4G access network, notably to enable the decommissioning of the 3G network and a seamless transition to 5G.

The aim is to facilitate the transition towards a very-high capacity network (VHCN) coverage and increase the 4G network capacity. This will result in the rollout of 200 5G sites in densely populated areas and 600 5G sites in rural areas across the country. The related investments also cover backhaul optical fibre network installation, core network capacity expansion, including the deployment of cloud systems to allow distributed and virtualised network functions, as required by the latest mobile technologies. Furthermore, investments include research, development and innovation activities to develop new innovative applications and business solutions, based on 5G new technological possibilities.

The project contributes to the Public Policy Goal Innovation, Digital and Human Capital (Digital Infrastructure) and horizontal objective Economic and Social Cohesion. The project will increase the quality and capacity of the promoter's mobile network, enabling the provisioning of advanced mobile broadband services. The project supports the target of the Digital Compass to cover all populated areas with 5G by 2030.

The project will lead to the deployment of innovative and secure telecommunication technologies and thus generate positive network externalities by enabling more users to benefit from improved and safe access to ultrafast broadband services and thus information, digital services and better communication. The project also generates further externalities to other sectors of the economy by supporting innovation and competitiveness. This will lead to economic returns to society that exceed those to the private investor. The Bank's contribution to the project is also supported by a combination of its advantageous terms, flexible availability and utilisation of the loan, as well as helping crowd-in other financiers, thereby facilitating the project's financing and full implementation.

Investments in mobile telecommunications networks do not fall under Annexes of the Environmental Impact Assessment (EIA) Directive 2014/52/EU (amending the EIA Directive 2011/92/EU) and are therefore not subject to a mandatory EIA.

The promoter has been assessed as being a private company not being subject to EU rules on public procurement or concessions.