Rel Comm to invest $1.5 bn

Telecom and communications major Reliance Communications has earmarked a capital expenditure (capex) of $1-1.5 billion in the current financial year that will be used for overall operation and network expansion plans. Separately, the company also bagged enterprise data business from global internet majors including Google, Yahoo! and software major Microsoft, apart from banking major Deutsche Bank.

Reliance Communications MD and Chairman Anil Ambani said the company has a capex guidance of $1-1.5 billion for the current year.

However, an exact figrue would be announced in January next year. Reliance will use the capex for furthering its IP-enabled connectivity, wireless and enterprise businesses and submarine cable activities across the globe. A part of it is also expected to be used for its 3G foray, with having options of pursuing WCDMA, EVDO at 800 MhZ and GSM at 1800 Mhz.

"We will look at pursuing a technology on a cost and capital efficiencies," he said. The company has the world's largest next generation IP-enabled connectivity infrastructure, with over 150,000 km of optical fibre cable (OFC) in India, USA, Europe, West Asia and Asia Pacific region. This comprises 88,000 km of OFC and data networks in India and 65,000 km of international submarine cable networks - the largest private submarine cable network in the world "� giving us a presence in 6 continents, he said.

He, however, did not divulge the specifics of the proposed investment. Meanwhile, during the quarter ended September 30, 2006, the company has bagged enterprise business from Google, Yahoo!, Microsoft and Deutsche Bank among others. Under the contract, Reliance will provide these companies with bandwidth connectivity and data managed services from India, he said.

On the subscriber base of the company, he said: "We are confident that this growth will accelerate and our mobile subscriber base will reach 500 million over the next few year, at which stage telphony penetration will be still under 50 per cent ".

Reliance has emerged as the one of Asia's top 6 most valuable companies in just 239 days of its being a public-listed company, he said, adding, it has a customer base of over 29 million making it one of the top 10 Asian telecom companies. It has operations in 28 countries across the globe.