Hutch to invest Rs 300 crore in Mumbai

NEW DELHI: The Indian mobile unit of Hong Kong's Hutchison Whampoa conglomerate said that it would invest three billion rupees next year on expanding its network in the country's financial hub, Bombay.

Hutchison Essar, which provides GSM-based cellular services in 10 of the 23 zones of the booming mobile sector, has more than four million cellular customers. India has a total user base of about 28 million mobile users.

The proposed investment will help Hutchison Essar add 170 cell sites to its existing base of over 650 in Bombay where it is the leading provider of GSM-based mobile services to more than a million subscribers, a company statement said.

Some of the funds will also be used to improve the speed of its data services in the city, which is the largest market in India after the capital New Delhi, the statement added.

Earlier this month, the firm announced it would invest $55 million in boosting its capacity in Delhi and its suburbs.

Hutchison Essar, which has been providing mobile services in Bombay since 1995, competes with Bharti Tele-Ventures Ltd, state-run Mahanagar Telephone Nigam Ltd and BPL Mobile Communications Ltd.

The firm hopes to list its mobile operations in India next year. It also competes with basic operators such as Reliance and the Tata group who provide the less expensive CDMA-based mobile services in one of the fastest growing markets in the world.

Reuters