RCom to reduce capex by a third

Reliance Communications (RCom) plans to reduce capital expenditure by a third in the next financial year. The company said today it would spend Rs 3,000 crore, excluding investments in Wi-Max and 3G, compared with Rs 4,500 crore in the current financial year. RCom has already spent Rs 3,200 crore in the first three quarters.

“The company invested over Rs 40,000 crore in the last four years towards expansion of network and operations across businesses in India and internationally,” Group Managing Director Satish Seth said during an analyst conference call.

The company posted a 21.4 per cent decline in net profit on Saturday. “Given the unsustainable business models, we expect to see consolidation in the industry in the next 12 -18 months,” Seth said.

RCom also said it has signed three new deals through its 100 per cent owned subsidiary, Globalcom. The new deals include a national long distance lease contract worth Rs 210 crore, and another contract worth Rs 170 crore in the wholesale data segment.