IDB Invest, WOM Contribute to Closing Chile’s Digital Divide
IDB Invest is providing a revolving facility of up to $100 million to support the financing program for cell phones and mobile broadband services of WOM S.A., the fastest growing mobile operator in Chile.
With this deal, Chileans will be able to benefit from the company's financing programs with accessible conditions to purchase devices and access the post-paid service.
In Chile, 30% of mobile phones are not smartphones, leaving vast swathes of the population without access to internet connectivity. For a large part of the population, especially for people with lower incomes, smart devices are the main point of access to information, education, banking and health services.
The deal will contribute to achieving greater economic productivity through diversification, technological updating and innovation. As the use of smartphones increases, more and better digital services become accessible to people, and the Chilean market becomes more attractive for developers and content providers. A larger market encourages innovation that benefits the whole of society.
As part of the agreement, IDB Invest will offer WOM advisory services to achieve the EDGE certification in gender equality. The company has developed various initiatives focused on promoting gender equality within its operations and workforce. With the support of IDB Invest, the mobile network operator will take another step in its commitment to close the gender gap.
With this deal, IDB Invest once again shows its commitment to expanding access to broadband services in the region. In addition, it continues to invest in innovative financial products to increase development impact, in this case with a non-committed revolving discount facility for the purchase of accounts receivables from smartphones and digital services sold on credit, a rare financial instrument in the market.
This deal is expected to contribute to one of the United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $14.8 billion in asset management and 376 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
As the fastest growing mobile telecommunications provider in Chile in terms of subscribers, total and network revenues, WOM is a consumer-focused mobile network operator that offers mobile voice and data services and mobile broadband services to individuals and small and medium-sized businesses. It has increased its market share by positioning itself as the provider that delivers quality service at fair prices.