BPL Mobile ramps up capex to Rs 200 crore for 2007EconomicTimes writes…BPL Mobile Communications has increased the capex for this year to Rs 200 crore. The telco, in which the Essar group owns 9.9%, will also refinance loan of Rs 700 crore in the next two months. “We are working on re-financing our Rs 700-crore debt. It should happen in the next two months.
Part of the expansion will be funded from this debt and the rest from internal accruals,� BPL Mumbai CEO S Subramaniam told ET. The refinancing could be done by the current bankers, which are IDBI, ICICI and IDFC.
However, Mr Subramaniam refused to comment on details. The company had announced a capex of Rs 100 crore in August last year. “We are doubling it up because we have to invest more to keep pace with the growth,� he said.
The increase in investment is significant as it is being viewed as yet another attempt at building value in the circle ahead of a possible sale. According to sources, the proposed merger of BPL Mobile with Hutchison Essar (HEL) has been called off and the Ruias will continue to manage the circle as of now.
With the new investment, BPL will nearly double the number of base stations from 600 to over 1,100 by September this year. BPL Mobile has roped in Motorola for providing telecom equipment.
The telco, with around 11 million users, is also replacing the existing IN networks. Comverse, an Israel-based mobile communications software maker, is providing the new IN networks. Also in the pipeline are new value-added services, upgradation of call centre and a branding exercise for BPL.
Mr Subramaniam said BPL Mobile reported Rs 106-crore revenue in the quarter ended September ‘06. “We expect to be at Rs 121 crore in the October-December quarter,� he added.
He said. BPL’s current subscriber capacity is around 14 lakh and it plans to have 18 lakh lines in place by December ‘07. Other operators in Mumbai market are Hutchison Essar, Bharti Airtel, MTNL, Reliance Communications and Tata Teleservices.
