Vodafone to invest $6 billion in Indian operations in next three years

New Delhi: Leading private GSM operator Vodafone-Essar today unveiled a major plan that could see an investment of Rs 24,000 crore (about $6 billion) over the next three years.

Arun Sarin, CEO of the UK-based telecom giant Vodafone Plc, said, "We shall be investing $2 billion annually for the next three years on our Indian operations and have set a target of reaching 100 million subscriber base from the current level of 40 million."  (See: Vodafone to invest $2 billion in India this year)

The investments, in line with the amount spent in 2007, will be used to build telecommunications towers, set up exclusive showrooms, and advertising, Sarin told reporters.

He also announced that the company would be introducing a range of new services in India.

Sarin said the investments would be made from Vodafone's treasury.

On the issue of ongoing controversy over spectrum allocation, Sarin said, "We hope the issue will be resolved at the earliest. We need more spectrum, as the spectrum and the capital expenditure go hand in hand."

"We have presented our views to the Indian government. We are very positive about the government," he said.

Vodafone acquired control of Hutchison Essar in May 2007 aiming to grab a large share of the Indian market that has huge potential for growth.  (See: Vodafone, Essar to sign deal; name to be changed to Vodafone-Essar)