RCOM to invest Rs 1,500 cr on network, data services in FY'13

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Reliance Communications today said it will invest Rs. 1,500 crore in optimising telecom network and data services this fiscal.

"Our capex guidance for this fiscal is Rs. 1,500 crore which will be invested mainly on network optimisation and data services. Out of this, we have already invested Rs. 369 crore in this quarter (first quarter, financial year 2012-13)," a top RCOM official said in a post-earnings call.

The investment will be made across the company's network in India as well as its global cable network.

The official added that the company is aiming to increase its market share in India data (internet) services market to the tune of 20-24 percent over next 4-5 years. "(There is) huge incremental data revenue market opportunity which is likely to grow from Rs. 7,000 crore (currently) to over Rs. 35,000 crore in next 4-5 years. RCOM is aiming at data leadership to increase it's data market share from 20-24 percent," an RCOM official said.

The company has reported over 24 million data customers in India out of which 4 million are active users of 3G services.

During the call, RCOM officials said the data traffic flowing through its network, including its optical fibre cable, account for 12 percent of the world's data traffic and is expected to grow further.

The official added that company will focus on accelerating GSM revenue growth, particularly in 14 new GSM circles through segmented and localised approach.

RCOM reported a 3.1 percent increase in its net profit at Rs. 162 crore for the first quarter ended on June 30 compared to net profit of Rs. 157 crore for the same period a year ago.

Its total income, on a consolidated basis, during April-June, 2012 grew by 8.5 percent to Rs. 5,264 crore compared to Rs. 4,849 crore posted in the same period in the previous financial year.

On a standalone basis, the company narrowed its net loss to Rs. 252 crore for April-June quarter compared to a loss of Rs. 272 crore in the corresponding period a year ago.

The total income dropped to Rs. 2,794 crore in the first quarter compared to Rs. 3,002 crore in the April-June quarter in 2011.

An RCOM official said its debt on books has also reduced to Rs. 35,600 crore as on June 30, 2012.

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