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Mumbai , Oct. 16

THE capital expenditure outlay for Reliance Infocomm Ltd will be Rs 8,500 crore over the next 18-24 months, according to Mr Anil Ambani, Vice-Chairman and Managing Director, Reliance Industries.

Reliance Infocomm has already recorded a cash profit within just five months of operations, and is on its way to reporting a net profit in its very first year of operations, he added.

"With nearly five million subscribers for Reliance IndiaMobile, with an average revenue per user at Rs 450-500 and usage amounting to 11 crore network minutes per day, we would be in the net profit zone." The company is adding 30,000-40,000 new subscribers every day, and is doing well on the bulk customer front having recently bagged an order of 2,50,000 phones from a single industrial customer, Mr Ambani said.

It plans to shortly announce a pre-paid service in keeping with the direction of the market.

The total capex plan is Rs 18,000 crore; the company has spent up to Rs 9600 crore, with Rs. 8,500 crore to be spent over the next 18-24 months. "The investment in Reliance Infocomm will start yielding results from next year onwards, and the earnings will are to be consolidated with RIL's own from the next financial year."

The expenditure on account of license fees to be paid, should the unified licensing scheme become a reality, will not affect the company's projections for net profit during the end of this fiscal, he added.

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