Aircel Cellular, in which Malaysian telecom major Maxis Communications holds 70 per cent stake, will invest another $5 billion in the next three years in the country. The GSM service provider today started operations in Mumbai, putting to rest speculation on plans to acquire the city’s oldest mobile company, Loop Mobile.
“We have planned $5 bn investment for financial years 2010, 2011 and 2012 for expansion of operations. We are planning to commence operations in five additional circles. A good amount of investment will be made in existing circles also,” said Chief Operating Officer Gurdeep Singh. The company, which commenced operations in December 2003, had invested a total of $5 bn till date, he added.
Aircel will add another five circles – Gujarat, Madhya Pradesh, Rajasthan, Punjab and Haryana – by next year, while a part of the investments will also be for developing its existing network.
Investments would be also used for doubling the number of cell sites to 40,000 by the end of this year, from the present 20,000 towers. The company has sufficient funds, and has no plans for an “immediate Initial Public Offering,” he said.