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RCom hopes to sell tower biz next year, to reduce debt by FY15
Reliance Communications on Tuesday said it expects to complete the sale of its tower business in 2013 after spectrum auctions and bring down overall debt by fiscal 2014-15.
“Our focus is to monetise all Reliance assets and increase the cash flow and profitability and to be the lowest cost operator in the industry. Going forward, we are committed to unlock value and pursue several initiatives to reduce the overall debt of the company. I expect RCom to achieve a debt-Ebidta level at 3 or even lower by FY15,” RCom Chairman Anil Ambani told the company’s shareholders at the AGM here.
He further said the company expects “to complete tower sale in 2013, after the forthcoming spectrum auctions”.
The staggering Rs 35,000-crore debt of RCom makes it one of the country’s most indebted telecom firms, and constitutes nearly 10 per cent of the industry’s debt of Rs 3.5 lakh crore.
“The company is reporting cash flow now and will continue to remain cash-positive in future,” Ambani said.
On future revenue stream, he said, “data will lead the next wave of wireless growth in the country,” adding that RCom is already the leader in non-voice wireless segment which brings in over 20 per cent of the total revenue.
Data customer base stands at 25 million, while 3G customer base has grown to 4 million.
On listing its international data carrier arm Flag, Ambani said the company is pursuing to list the firm on the Singapore Exchange “at an appropriate time and at the right market conditions”.
RCom put Flag IPO plan on the Singapore stock exchange on hold citing bad market conditions.However, Ambani ruled out any listing plan for anothersubsidiary Reliance Infratel.
On huge 3G investment that the company made in 2010, Ambani said he was confident of getting the right kind of returns on the 3G investment in the medium-term.
Reliance Communications on Tuesday said it expects to complete the sale of its tower business in 2013 after spectrum auctions and bring down overall debt by fiscal 2014-15.
“Our focus is to monetise all Reliance assets and increase the cash flow and profitability and to be the lowest cost operator in the industry. Going forward, we are committed to unlock value and pursue several initiatives to reduce the overall debt of the company. I expect RCom to achieve a debt-Ebidta level at 3 or even lower by FY15,” RCom Chairman Anil Ambani told the company’s shareholders at the AGM here.
He further said the company expects “to complete tower sale in 2013, after the forthcoming spectrum auctions”.
The staggering Rs 35,000-crore debt of RCom makes it one of the country’s most indebted telecom firms, and constitutes nearly 10 per cent of the industry’s debt of Rs 3.5 lakh crore.
“The company is reporting cash flow now and will continue to remain cash-positive in future,” Ambani said.
On future revenue stream, he said, “data will lead the next wave of wireless growth in the country,” adding that RCom is already the leader in non-voice wireless segment which brings in over 20 per cent of the total revenue.
Data customer base stands at 25 million, while 3G customer base has grown to 4 million.
On listing its international data carrier arm Flag, Ambani said the company is pursuing to list the firm on the Singapore Exchange “at an appropriate time and at the right market conditions”.
RCom put Flag IPO plan on the Singapore stock exchange on hold citing bad market conditions.However, Ambani ruled out any listing plan for anothersubsidiary Reliance Infratel.
On huge 3G investment that the company made in 2010, Ambani said he was confident of getting the right kind of returns on the 3G investment in the medium-term.
