With ambitions of setting up a 3G network in India, the Malaysia-based Maxis group will invest $5 billion to roll out services in the 10 telecom circles where it is not present right now. The plan will be carried out through its vehicle here, Aircel.
Speaking at the launch of Aircel services in the Delhi market, Sandip Das, CEO, Maxis Communications, said: “For the 23 circles (in India), we have slotted an investment of $10 billion, of which $5 billion has been spent or is part of the current capital expenditure.” The company was operating in 13 circles till now.
This expenditure, however, excludes what the company will spend for the coming auctions of third-generation (3G) spectrum. “We are serious on pan-India bidding. 3G investments are huge, there is possibility of spectrum arbitrage. If we get 3G, we can use it in a manner that will rationalise our costs,” added Das.
The company would bid, he said, despite the uncertainty over the reserve price. “Irrespective of whether bid prices rise or fall , serious players will keep pursuing. But at the current reserve price, (Rs 2,020 crore) we still have an appetite.”
Said Das: “We hope to finish our pan-India rollout in 24 months. We have 17 million subscribers on our network in India and we hope to increase it to 30 million by the end of the year.”
While Aircel today launched its operations in Delhi with competitive segment-wise rate offerings, the company is unlikely to pass on the benefit of reduced termination charges to the consumer. Das said, “We have evaluated this move, but there is no discussion or plan to pass (it) on.”
He also ruled out the possibility of hiving off its infrastructure business into a separate company any time in the near future. “Our top priority is to roll out our network, and not get distracted by such things at this time.”