Reliance Communications To Spend Us$ 6 Billion Next Fiscal Year

[Arun 795]

The Hindu Business Line

Mumbai, Jan. 31, 2008

Reliance Communications has said that it will spend about $6 billion (Rs 24,000 crore) for the next fiscal ending March 2009 in strengthening its wireless network.

The firm has also revised its capex for the current year ending March 2008 to $5.2 billion (Rs 21,000 crore) from $4.5 billion (Rs 18,000 crore) as planned initially. This is taking into account the Rs 1,651-crore licence fee that Reliance had paid to start pan-India GSM operations, the group Chairman, Mr Anil Ambani said in a conference call with analysts.

“Of the total capex plan for the next fiscal, we project our investments in emerging fast growing areas like enterprises business, FLAG Telecom and others at $2.7 billion,” said Mr Ambani.

The company will invest $2 billion in Reliance Infratel and spend another $1.3 billion (Rs 5,000 crore) for its nationwide GSM expansion programme. Reliance Tower Company will have 60,000 telecom towers by March 2009, from its present tower strength of around 25,000. Responding to a query on the expected launch of its nationwide GSM services, Mr. Ambani indicated the company is looking at an ‘end of fiscal 2008-09’ timeframe. Reliance Communications is expanding its GSM network to all 23 circles from the current 8 circles.

end of financial year 2008 - 09 will be around March 31, 2009

[Honest 836]

^^^

So my dear friends, at last we get the exact expected date for the launch of Reliance's GSM services nationwide. Until now we are just making ideas of when it is going to launch. But now we atleast get the exact time frame.

Regards.