The funds raised will be used to expand Smile's existing 4G LTE mobile broadband networks and services, so that by the end of 2015, Smile will offer crystal-clear voice quality and nationwide coverage comparable to the largest 3G network in each of the countries where it currently operates. Smile will also deploy its broadband network in the Democratic Republic of Congo ("DRC") in early 2016.
Under the terms, the funding will be used to accelerate the nationwide rollout of the network, including equipment and services provided by Alcatel Lucent and Ericsson, a comprehensive MPLS (Multiprotocol Label Switching) network, a Point of Presence in London and expanded international backhaul network services, and to cover operating expenses and working capital.
Smile's goal is to become the preferred broadband provider for super-fast data services and crystal-clear voice quality in each of its markets, providing more than 300 million potential customers across the four countries where it operates with a fast, reliable, and high-quality platform to accelerate development and wealth creation. There is compelling evidence linking broadband to job creation; the Brookings Institution states that "for every one percentage point increase in broadband penetration, employment is projected to increase by 0.2 to 0.3 percent annually." Furthermore, according to the World Bank's Broadband Strategy Handbook, "a 10 percent increase in the broadband penetration rate in developing countries is associated with a 1.4 percent increase in GDP (Gross Domestic Product) per capita.".
About Smile Telecoms Holdings Ltd
Smile, founded in 2007 and incorporated in Mauritius, is a pan-African telecommunications group with operations in Nigeria (Smile Communications Nigeria), Tanzania (Smile Communications Tanzania), Uganda (Smile Communications Uganda) and the Democratic Republic of Congo (Smile Communications DRC) and has an associated company in South Africa.
Smile has a simple, transformative goal: to use the best and most innovative technologies to provide its customers with fast, reliable, high-quality, easy-to-use, and affordable communication services.
In 2012, the company launched Africa's first commercial 4G LTE network in the 800 MHz band ("ITU band 20") in the East African market, starting in Dar es Salaam, Tanzania, and then in Kampala, Uganda, followed by the launch of West Africa's first commercial 4G LTE networks, also in band 20, starting in Ibadan and then in Lagos, Nigeria.
