The Hindu Business Line : Reliance Comm plans Rs 10,000-cr capex

Mumbai May 1 Reliance Communications Ltd will invest Rs 10,000 crore in capital expenditure across the breadth of its businesses in the current fiscal, according to the Chairman, Mr Anil Ambani.

On the company's GSM plans, Mr Ambani said that a national rollout would be possible one year from the time of release of spectrum, and at a cost of $1 billion or Rs 4,500 crore.

He said he was "optimistic" about the availability of GSM spectrum.

With a debt equity ratio of 0.08, the company is in a position to raise up to Rs 40,000 crore comfortably, said Mr Ambani.

Future shareholder value will come from Reliance Telecom Infrastructure (the company to which the passive tower infrastructure of RCom has been transferred) and FLAG, its international undersea cable company.

Within six months a decision will be taken on listing FLAG.

For the infrastructure company, the alternatives could be getting a financial investor, a strategic partner or even listing.

The infrastructure company, which now has 12,000 towers, will add 20,000 more this fiscal.

It is a zero-debt company which can raise debt without recourse to Reliance Communications, according to Mr Ambani.

These towers are tweaked for GSM, CDMA, 3G and Wimax technologies, he said.

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