RCOM to spend USD 2.5 bn to expand its base

Mumbai, Mar 5 (UNI) Reliance Communications (RComm) is likely to spend USD 2.5 billion in next financial year (2008) on its capex cover by adding 20,000 BTS (base terminal stations).

The covering push is likely to preside in the highest share of net adds for the company.

Given that RComm has lost the bid, the risk associated with a possible expensive aquisition of Hutch-Essar has disappeared and that the company had underperformed Bharti by 24 per cent from January this year.

''We believe the presence of multiple bidders in the Hutch-Essar auction created a risk factor of our company, outbidding its rivals.

We note that the company has been disciplined when it submitted its bid for Hutch-Essar,'' according to UBS Investment Research.

UNI KKD SSS AW1959 UBS upgrades RCOM to Buy RCOM beginning to expand coverage aggressively RCOM was disciplined when it bid for Hutch Essar Places price target at Rs 540