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RCom to invest Rs16,000 cr for network expansion

RCom to invest Rs16,000 cr for network expansion
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First Published: Tue, Jul 17 2007. 04 54 PM IST
Updated: Tue, Jul 17 2007. 04 54 PM IST
Anil Ambani group firm Reliance Communications will invest Rs16,000 crore for network expansion in the current fiscal, besides looking at inorganic growth opportunities across the world.
On 16 July, it acquired US-based ethernet and application delivery services provider Yipes Communications for$300 million to have a footprint in the US market.
“Reliance Communications will invest Rs16,000 crore in this fiscal to further expand and strengthen network,” company Chairman Anil Ambani said here at its Annual General Meeting.
He added that the company is also exploring possibilities of inorganic growth route across the world. To unlock the shareholders value, it will also take private placement route to sell stakes in tower as well as bandwidth businesses.
“Reliance Communications will unlock value in Flag Telecom through private placement of equity and international listing of shares before year-end,” Ambani said.
Flag Telecom, the firm’s bandwidth business, is a wholly-owned subsidiary of the CDMA major.
Global private equity players like Carlyle and Temasek are believed to be interested in Reliance’s tower business. The company has already appointed J P Morgan as advisor for the sell-off.
The telecom major also has plans to enter BPO business. The Board of Approval in the Commerce Ministry has already approved the company’s IT and Ites Sez in Mumbai.
Having received license for DTH services in May this year, Reliance is planning to start broadcast operations by December this year.
Shares of the company were down 0.91% at Rs568.80 on the BSE.
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First Published: Tue, Jul 17 2007. 04 54 PM IST