Telecom network operator Reliance Communications will be making an investment of Rs 4,000 crore towards capital expenditure (Capex) during the next fiscal ending March 2017 — focusing on 3G and 4G.
The Anil Ambani-promoted Reliance Communications has already increased its Capex for the current fiscal (2015-2016) to Rs 4,000 crore from Rs 3,000 crore planned earlier. Reliance Communications’ Capex for fiscal 2015 was Rs 1,500 crore.
“We are raising our Capex guidance to Rs 4,000 crore for this fiscal and next year to strengthen our 3G network,” said Reliance Communications Chief Executive Officer Gurdeep Singh (consumer business).
Reliance Communications will be investing in upgrade of its 4G network and 3G network expansion.
Reliance Communications also expects to announce its cellular tower deal within the next two weeks.
“We expect to close the tower deal in two weeks,” said Reliance Communications Chief Executive Officer Vinod Sawhny.
On December 4, 2105, Reliance Communications signed non-binding agreements with private equity firms Tillman Global Holdings and TPG Asia to sell its tower assets. The firms are also evaluating to acquire inter- and intra-city optical fiber assets of Reliance Communications.
Reliance Communications aims to mobilize Rs 30,000 crore from the two deals. The objective of the tower and fiber deal is to reduce debt of Rs 40,000 crore.