Reliance Communications, which is sitting on a debt pile of Rs 35,000 crore (Rs 350 billion), said on Tuesday it expects to complete the sale of tower business by next year after forthcoming spectrum auctions and bring down the overall debt by FY15.
"Our focus is to monetise all Reliance [ Get Quote ] assets and increase the cash flow and profitability and to be the lowest cost operator in the industry.
"Going forward, we are committed to unlock value and pursue several initiatives to reduce the overall debt of the company. I expect RCom to achieve a debt-Edidta level at 3 or even lower by FY15," chairman Anil Ambani told the company's shareholders at the AGM in Mumbai.
He further said the company expects "to complete tower sale in 2013, after the forthcoming spectrum auctions".
The staggering Rs 35,000-crore (Rs 350-billion) debt of RCom makes it the most indebted telco in the country, and constitutes nearly 10 per cent of the industry's debt of Rs 3.5 trillion.
"The company is reporting cash flow now and will continue to remain cash-positive in future," Ambani said.
"On future revenue stream, he said, "data will lead the next wave of wireless growth in the country," adding RCom is already the leader in non-voice wireless segment which bring in over 20 per cent of the total revenue.
Data customer base stands at 25 million, while 3G customer base has grown to 4 million.
On the failed bid at listing its international data carrier arm Flag, Ambani said the company is pursuing to list Reliance Flag on the Singapore Exchange 'at an appropriate time and at the right market conditions'.
RCom dropped the nearly 1 billion-dollar IPO plan of Rel Flag, which carries 12 percent of the global data traffic, listed through the Singapore Exchange citing bad market conditions.