Maxis Planning Us$4 Billion Investment in Indian Subsidiary

Malaysia's Maxis Communications plans to invest upwards of US$5 billion over the next four years in its Indian subsidiary, Aircel to expand the network and boost capacity. Aircel has spent some US$2 billion since the company was set up - with over $500 million last year.

The operator currently has some 7,000 towers nationwide and aims to more than double that to over 15,000 by 2009.

Sandip Das, chief executive officer, Maxis Communications, said, "We are looking to introduce several value-added services in India that we have already rolled out in other countries. For instance, multimedia messaging or value-added-services built around SMSes is one area we are strongly exploring for the Indian market. These are available in Malaysia right now."

"We will launch special schemes and tariffs for rural and urban India," he added.

Aircel is present in 9 telecom circles (Assam, Bihar, Chennai, Himachal Pradesh, Jammu & Kashmir, North East, Orissa, Tamil Nadu and West Bengal) and with licenses secured for the remaining 14 of the 23 telecom circles.

Maxis holds a controlling 74% equity interest in Aircel, as a result of its 65% direct stake and 9% indirect stake via its participation in Deccan Digital Networks Private Limited. Deccan Digital is the joint venture company Maxis has set up with the Chennai based Reddy family. The JVC will own a 35% direct stake in Aircel.

A recent news report had hinted that AT&T is was considering a joint venture with India's Aircel - by purchasing the stake in the company held by Malaysia's Maxis. Aircel was valued at nearly US$1.5 billion in January 2006 when investor Sivasankaran had offloaded his entire stake to Maxis. At the time, the company had around 2.6 million subscribers, although this has now risen to around 6.2 million.

Posted to the site on 6th May 2008

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