Reliance Communications To Spend $2.5 Billion On Mobile And Broadband Network Expansion

Reliance Communications has planned a capital expenditure of $2.5 billion over the next two years, as per Chairman Anil Ambani. The investment will be used for mobile expansion, to cover 85 percent for India’s population, and prepare the networks for 3G. Listen to the conference call audio (here). In a separate interview with CNBC-TV18, Prakash Bajpai, President and CEO of Reliance Communications’ Enterprise Business says that a significant portion of Reliance’s planned capital expenditure of $2.5 billion over the next two years will be spent on broadband infrastructure. For now, they’re focusing on enterprise broadband, where they have doubled their business with 45 percent margins in the last year. In Q4, they had an order booking of around Rs. 737 crore, with margins of around 49 percent.
A countrywide rollout of DTH is expected by the end of the year, and IPTV will be launched in select metro cities. Bajpai says that Reliance has provided fibre broadband connectivity to around half a million buildings, and has targets of 1.6 million buildings in the next year. More from the interview: text / video.

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