India’s Reliance Communications (RCOM) has outlined plans to cut its debt to below INR200 billion (USD3.2 billion) within the next two years, while also confirming that it intends to both participate in upcoming spectrum auctions and launch 4G as early as 2015.
According to India’s Economic Times, RCOM chairman Anil Ambani was cited as saying of the company’s debt position: ‘Our aim is to bring debt to below INR200 billion in the next 24 months. We have recently reduced our debt by INR60 billion through a qualified institutional placement.’ With the company’s debt currently understood to exceed INR350 billion, RCOM reportedly requires capital expenditures of between INR10 billion and INR15 billion each year for the sustainable maintenance of its infrastructure. To address the financial issue RCOM is said to be looking at a demerger of land banks, ahead of a separate listing, with Ambani noting: ‘Non-core businesses like real estate and DTH will be monetised. We are looking at various options to monetise these two assets.’
Meanwhile, with the state expected to auction off wireless spectrum in February 2015, with frequencies in the 800MHz, 900MHz, 1800MHz and 2100MHz bands due to go under the hammer, Mr Ambani confirmed: ‘We will participate in auctions next year and will be in a position to launch 4G services in 2015.’