RCom plans Rs 20,000 cr network expansion

Reliance Communication will invest Rs 20,000 crore this year in an attempt to extend its urban and rural coverage to 98 per cent and 67 per cent respectively.

Speaking at a press conference in Kolkata organised by TDSAT, N K Mangla, head of the regulatory department of Reliance Communication, said, "We plan to have a customer capacity of 8 million or 55 per cent of the population in 2008."

Reliance also plans to cover 95 per cent of highways, 93 per cent of railways, 6,000 towns and five lakh villages in 2008. Currently, the company has 22,000 towers.

It is likely to spend around $2.5 billion on the electronics for GSM services, and build 43,000 new towers. Reliance officials also claim that they will have 40,000 towers up and running by the end of this fiscal.

According to Mangla, there is need for more telecommunication service regulations in the face of competition.

"Recently, due to over 60 per cent telecom sector growth, competition and disputes among telecom operators and related sectors have increased and therefore there is need for more regulations in the sector. New regulations should focus on smooth convergence of telecom and information technology services and a level playing-field for all operators," Mangla said.