Major Development for Poland’s Network Infrastructure

By: The Quinnipiac University Economics Research Team, Michael Szwaja

This year of 2021 has already seen governmental contributions towards fighting the ongoing pandemic (COVID-19), as well as towards bolstering Poland’s networking and telecommunications infrastructure. As of this week, the European Bank for Reconstruction and Development (EBRD) has pledged to invest in one of Poland’s premier networking operators, Play. The EBRD committed €22 million (100 PLN) towards the company, with the intention to enhance Poland’s mobile network. With this investment, the firm aims to accelerate the transition into 5G and digitalization for Poland’s data consumers. In effect, the goal is to lower energy consumption when compared to previous technologies like 4G while amplifying the energy efficiency of its network and offering customers a more efficient and effective mobile broadband.

The investment will be made via a senior unsecured bond in favor of Play and issued on Poland’s capital market. That is comprised of a wide group of Polish institutional investors. Furthermore, the issuance of this bond is based on a maturity of seven years, which is the longest maturity amongst issuances placed in the corporate sector since last March.

This figure reports the percentage of individuals who have used a portable computer to access internet amongst all individuals residing in Poland. The line shows the growth of the networking infrastructure in Poland with available data from 2012-2017.

In 2012, 77% of individuals living in Poland utilized wireless networks, and in the most recent recorded data (2017), 86% of individuals use wireless networks. Furthermore, based on the first three years (2012-2014) an average of 70% were utilizing wireless networks, while during the last three years (2015-2017) the average increased 15 percentage points to 85%. The significant increase expresses the rise of usage on networking and data devices of individuals living in Poland.

The investment by the EBRD builds upon the rise of consumption of data and networking-based devices. Therefore, it seems that Poland and its consumers are leading the way in transitioning to a more technologically advanced country, with significant efforts to enhance the strength and reliability of its infrastructure. In conclusion, Poland is making major contributions in building their technologies and networks, while also working to lower energy consumption through its environmental initiative partnered with the EBRD’s Green Cities.

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