Vodafone to invest 2 billion a year: Sarin

NEW DELHI: World's largest mobile operator Vodafone will spend USD 2 billion a year in India for expansion and share infrastructure with peers instead of creating them on its own or buying into others.
    
"Since our entry into India, our capital expenditure has doubled. We are now spending 2 billion USD a year," he said.
    
The company, which entered India earlier this year through acquisition of Hutch, seeks to extend its coverage to 90 per cent of the market from 50 per cent now by bundling affordable handsets to reach out to the masses.
    
The company is adding 1.6 to 1.7 million customers a month. "Before we came to India, the company was adding 800,000 customers (per month)," Sarin said.
    
He said Vodafone had no plans to buy into infrastructure business of its erstwhile partner Bharti, but may share its facilities with peers so that companies need not put up their own towers everywhere.
    
"We are looking at ways to piggyback on each other's infrastructure to reach out to the masses quickly," Sarin said, adding: "It is completely unlikely that we would be buying into Bharti Infratel because we have our own infrastructure. There is no reason for us to buy."
    
Sarin, whose company might have to pay capital gains tax of USD 2 billion on account of the Hutch acquisition, met Finance Minister P Chidambaram in the afternoon, but said the tax matter was not taken up.
    
"There was no discussion (during the meeting) on the notice from the Income Tax Department. The matter is in court and we will wait for the decision of the court," he said.
    
On the current burning issue of spectrum auction on which the industry is divided over, he said it is theoretical issue and up to the Government to take a decision.