The spectrum deadlock not withstanding, BPL Mobile - one of India's first mobile-phone service providers - is readying a $2.5 billion war chest for starting services in the remaining 22 circles in the next two years.
The company, which is exploring various options of raising funds (equity as well as debt), is mulling the option of a public float.
BPL Mobile, which operates in Mumbai (Maharashtra), Goa, Pondicherry, Kerala and Tamil Nadu with a network spanning 207 cities, is also looking at roping in an equity partner for the pan-India foray and is believed to have started discussions with potential partners.
The company was recently awarded letters of intent to commence operations in the remaining 22 circles.
Confirming the development, director and chief executive officer S Subramaniam said: "We have received the LoIs and paid licence fees for starting the mobile operations across the country. Now, we are getting our financials tied up, while we await spectrum allocation."
The company would have to spend around $2.5 billion initially to commence and run the operations, which is calculated on the basis of a capital expenditure (capex) of $70-80 per new customer. The company is looking to commence operations with a minimum of one million subscribers a circle.
Further, funds are required to roll out its services, putting up BTSes and other equipment, and also for leasing of infrastructure, according to Subramaniam.
"However, rolling out of the services depends on the allocation of licence and subsequent disbursal of spectrum," he added.
The company is also planning to install 600 new towers by 2008-end, taking the total number to 1,700.
The company has 1.3 million subscribers in the country.
BPL, in which the Ruias-owned Essar Group holds a minority stake, has applied for the pan-India licence through Loop Telecom (formerly ShippingStop.com), its wholly owned subsidiary. The ownership of the company is under arbitration.
