The Hindu : Business : Vodafone to spend $2 b to expand network in India

Online edition of India's National Newspaper
Tuesday, Oct 09, 2007
ePaper

Business

Business

Vodafone to spend $2 b to expand network in India

Staff Reporter

To set up a $10 m charitable organisation

NEW DELHI: Vodafone, which pledged a $10million investment for setting up a charitable organisation in India, on Monday decided to spend $2 billion a year for expanding and strengthening its network in India.

Stating that Vodafone is also keen on sharing infrastructure with its competitors instead of creating them on its own, Vodafone Chief Executive Officer Arun Sarin said that since the company’s entry into India, its capital expenditure had doubled. “We are now spending $2 billion a year. We plan to cover 90 per cent of the market from 50 per cent now by bundling affordable handsets to reach out to the masses, particularly in small towns and villages,” he said while talking to reporters.

According to Mr. Sarin, Vodafone is likely to share its infrastructure with peers so that companies need not put up their own towers everywhere. This would help Vodafone and other companies expand their network across India. He said there were no immediate plans to go for any acquisition or buying the telecom tower business of other groups.

The Foundation would initially focus on projects associated with providing education to youths across the country, enabling the development of higher skill sets. It would commence work pursuant to the completion of the formal registration process, in compliance with tax and foreign contribution legislation and appointment of trustees.

Meanwhile, Mr. Sarin also met Union Finance Minister P. Chidambaram. On the controversy over $1.7-billion tax liability arising out of the Hutch-Vodafone deal, Mr. Sarin said the company would wait for the court decision on the matter.

Printer friendly page
Send this article to Friends by E-Mail

Business