RComm to invest Rs 11,000 cr next fiscal
Anil Ambani Group Company Reliance Communication on Thursday announced a whopping capital investment of $2.5 billion (Rs 11,000 crore) in the next financial year and this will be for India specific operations.
By PTI |
NEW DELHI: Anil Ambani Group Company Reliance Communication on Thursday announced a whopping capital investment of $2.5 billion (Rs 11,000 crore) in the next financial year and this will be for India specific operations.
"We shall be adding 20,000 new towers in fiscal 2007-08 and the total capex will be Rs 11,000 crore for expanding our GSM and CDMA based operations," Anil Ambani told analysts in a conference call in the post Q3 financial results.
Ambani said the company has entered into an agreement with all the leading cellular operators including Bharti Airtel, Hutch-Essar, Idea to share towers across the country and with state owned MTNL in Delhi and Mumbai.
Asked about the revenue sharing with promoting company of towers, Reliance Telecom Infrastructure Limited (RTIL), he said this will based on arms length formula and Reliance Communication would be paying the charges as any other operator.
Reliance Communication currently has 12,000 towers.
He said on each tower up to 5 operators can become tenants depending upon the location and size of the roof but certainly one more operator other than Reliance Communication can be accommodated.
With regard to expansion in the GSM-based mobile services, he said the investment will cross Rs 7,700 crore as the company has expanded services to 2200 towns in the eight circles where the company offers GSM services.
With regard to expanding GSM-based mobile operations in other circles, for which the company has applied for spectrum, Ambani said, "we are waiting for the frequency as this is the key raw material for operations."
For the CDMA-based services and its expansion plans, he said the available spectrum was adequate.
Ambani said Reliance Communication would start its Direct-to-Home (DTH) and IPTV services in the third quarter of next financial year. Huge investments would be made in creating infrastructure to support these operations.
The company's Flag Telecom unit, which received approval from the Board yesterday, would be spending additional 1.5 billion dollar (about Rs 7000 crore) on expanding and improving its undersea cables network.
"We shall be adding 20,000 new towers in fiscal 2007-08 and the total capex will be Rs 11,000 crore for expanding our GSM and CDMA based operations," Anil Ambani told analysts in a conference call in the post Q3 financial results.
Ambani said the company has entered into an agreement with all the leading cellular operators including Bharti Airtel, Hutch-Essar, Idea to share towers across the country and with state owned MTNL in Delhi and Mumbai.
Asked about the revenue sharing with promoting company of towers, Reliance Telecom Infrastructure Limited (RTIL), he said this will based on arms length formula and Reliance Communication would be paying the charges as any other operator.
Reliance Communication currently has 12,000 towers.
He said on each tower up to 5 operators can become tenants depending upon the location and size of the roof but certainly one more operator other than Reliance Communication can be accommodated.
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With regard to expansion in the GSM-based mobile services, he said the investment will cross Rs 7,700 crore as the company has expanded services to 2200 towns in the eight circles where the company offers GSM services.
With regard to expanding GSM-based mobile operations in other circles, for which the company has applied for spectrum, Ambani said, "we are waiting for the frequency as this is the key raw material for operations."
For the CDMA-based services and its expansion plans, he said the available spectrum was adequate.
Ambani said Reliance Communication would start its Direct-to-Home (DTH) and IPTV services in the third quarter of next financial year. Huge investments would be made in creating infrastructure to support these operations.
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The company's Flag Telecom unit, which received approval from the Board yesterday, would be spending additional 1.5 billion dollar (about Rs 7000 crore) on expanding and improving its undersea cables network.
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