Afghanistan's top phone network in $65 million expansion

Afghanistan's top telephone network Roshan announced Tuesday a 65-million-dollar expansion of its coverage, with part of the funds coming from foreign commercial banks in a first for the country.
The first-ever cross-border private sector loan to Afghanistan was a vote of confidence in the future of a nation often portrayed as a tough environment for business, Roshan chief executive officer Karim Khoja said.
The Asian Development Bank has committed 35 million dollars to the expansion of Roshan's coverage from 35 to 40 percent of the population, the company said.
The French and German government development agencies would each provide 10 million dollars more with the remainder secured by South African-based Standard Bank as private loans from a range of commercial banks.
Roshan, 51 percent owned by the economic arm of the Agha Khan Development Network, has in the three years since it was established signed up about 900,000 subscribers - nearly two-thirds of those in the country.
The company covers more than 150 major cities and towns and will expand to 70 more.
With the landline system nearly non-existent after years of war destroyed most of Afghanistan's infrastructure, the vast country relies on mobile networks for telecommunications.
Three other companies have licences to operate, one of which is due to set up later this year.
About 60 percent of Afghanistan's population is covered by telecommunications services, Communications Minister Amirzai Sangin told a ceremony to announce the expansion. He described this as a remarkable achievement considering that under the 1996-2001 Taliban regime, Afghans had to travel to neighbouring countries to make telephone calls.
About 1.5 million Afghans, or six percent of the population, have mobile telephones, he said.
Roshan, also owned by Monaco Telecom International and MCTCorp of the United States, is also Afghanistan's largest taxpayer.
It had contributed 45 million dollars in taxes by the end of 2005, which accounted for about six percent of the government's revenue by the end of the same year.
Afghanistan is trying to attract investment to develop its shattered economy but faces significant hurdles, including a lack of infrastructure - with sporadic electricity supply even in the capital - and concerns about security.