| The spectrum deadlock not withstanding, BPL Mobile - one of India's first mobile-phone service providers - is readying a $2.5 billion war chest for starting services in the remaining 22 circles in the next two years. |
| The company, which is exploring various options of raising funds (equity as well as debt), is mulling the option of a public float. |
| BPL Mobile, which operates only in Mumbai, is also looking at roping in an equity partner for the pan-India foray and is believed to have started discussions with potential partners. |
| The company was recently awarded letters of intent (LoI) to commence operations in the remaining 22 circles. |
| Confirming the development, Director and Chief Executive Officer (CEO) S Subramaniam said: "We have received the LoIs and paid licence fees for starting the mobile operations across the country. Now, we are getting our financials tied up, while we await spectrum allocation." |
| The company would have to spend around $2.5 billion initially to commence and run the operations, which is calculated on the basis of a capital expenditure (capex) of $70-80 per new customer. The company is looking to commence operations with a minimum of one million subscribers a circle. |
| Further, funds are required to roll out its services, putting up BTSes and other equipment, and also for leasing of infrastructure, according to Subramaniam. |
| "However, rolling out of the services depends on the allocation of licence and subsequent disbursal of spectrum," he added. |
| The company is also planning to install 600 new towers by 2008-end, taking the total number to 1,700. |
| The company has 1.3 million subscribers in the country. |
| BPL, in which the Ruias-owned Essar Group holds a minority stake, has applied for the pan-India licence through Loop Telecom (formerly ShippingStop.com), its wholly owned subsidiary. The ownership of the company is under arbitration. |
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