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Rcom’s capex may fall in FY’09, eyes 100 mn users in 2 yrs

Rcom’s capex may fall in FY’09, eyes 100 mn users in 2 yrs
PTI
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First Published: Tue, Sep 30 2008. 04 17 PM IST
Updated: Tue, Sep 30 2008. 04 17 PM IST
Mumbai: Anil Ambani’s Reliance Communications (Rcom), which is in the midst of a Rs50,000 crore investment programme said that the company’s capex is expected to decline significantly from 2009-10 onwards as the firm’s spending has reached its peak.
“We are at the peak of our capex cycle. Starting next year, our capex intensity is likely to decline significantly. This is a transformational phase for our company with many of our large-scale initiatives currently at a project implementation stage,” Reliance Communications’s Chairman Anil Ambani said at the company’s fourth annual general meeting (AGM).
“As these projects reach completion, we will reap the rewards for many years to come in the form of strong cashflows, substantially higher stakeholder value and a far superior experience for our consumers,” he added.
For fiscal 2007-08 and 2008-09, the company had earmarked an investment of Rs50,000 crore, of which Rs20,000 crore has been spent last fiscal.
Rcom shares were up 3.31% at the close on Bombay Stock Exchange (BSE) at Rs337.10.
Rcom, which has recently bagged GSM spectrum under the dual technology policy of the government, is targetting 100 million subscribers over a couple of years. India’s telecom user base stands at 344 million, while mobile subscribers base stands at 305 million.
“Today, we have close to 60 million subscribers. In the next two years we will have over 100 million subscribers, and rank among the Top 5 companies globally in terms of subscribers in a single country,” he said.
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First Published: Tue, Sep 30 2008. 04 17 PM IST