MUMBAI: Maxis Communications, Malaysia’s largest telecom company, plans to invest $300 million for network expansion in India.
The company, controlled by tycoon Ananda Krishnan, acquired 74% stake in Chennai-based cellular operator Aircel for $1.08 billion in January this year, against a rival bid from Telekom Malaysia.
D J Ibrahim, chief executive officer, Maxis Communications said, “We are looking to invest in the range of $300 million. The amount includes license fees for Aircel to expand its coverage to an additional 14 circles in India.”
At present, Aircel has presence in seven circles including Tamil Nadu, Chennai, West Bengal, Orissa, Assam, North East, and Jammu and Kashmir.
It has already received approvals for four new circles and would roll out services in Bihar and Himachal Pradesh by this December and Madhya Pradesh and Uttar Pradesh by the fiscal-end. Sources said the department of telecommunications has also given it the go-ahead for Mumbai and Delhi circles.
However, analysts feel it would not be easy for the company to make a dent in the already clogged Delhi and Mumbai markets, unless it went into third generation services once there is better clarity on the policy guidelines. The company can also benefit from infrastructure sharing among operators and save on capital expenditure. It also has to contend with the use of dual SIM cards as customers switch networks during promotions. Almost 20% of the subscribers in Malaysia are estimated to hold more than one SIM card, said Ibrahim.
Sources also said that the company has lined up an additional $1 billion investment over two years for expanding its operations in the country.
As on June 30, the group had 11.7 million subscribers, up 75% year-on-year from 6.66 million. This included Maxis Malaysia’s 8.47 million subscribers and Aircel’s 3.2 million.
