VimpelCom today said its Capex (capital spending) excluding licenses rose 29 percent to $1,017 million in the second quarter of 2014.
The telecom operator said Capex (excluding licenses) to revenue ratio will be approximately 21 percent for the full year of 2014.
In the second quarter of 2014, the main focus of the telecom Capex was to support mobile data growth.
VimpelCom said mobile data revenue grew 19 percent. However, mobile service revenue decreased 6 percent to $5.1 billion, driven by measures taken to improve customer experience.
The company, announcing the Q2 financial result today, said Capex excluding licenses has increased 29 percent, reflecting the company’s strategy to accelerate its investments in high-speed data networks to capture mobile data growth, including the rollout of 4G LTE networks in Russia, 3G networks in Algeria, Bangladesh and Pakistan, and continued investments in Italy in HSPA+ and 4G LTE.
In addition, VimpelCom acquired a 3G license in Pakistan for $300 million in Q2.
Russia
Beeline invested in data networks. VimpelCom has launched 4G LTE in 22 regions at the end of July and increased the number of 3G base stations by 34 percent. In 2Q14, Capex increased 22 percent and Beeline expects Capex to revenue of 22 percent in Russia for FY2014.
Italy
WIND invested in increasing the capacity and coverage of the existing HSPA+ network, as well as expanding 4G LTE services, now available in Milan, Turin, Rome, Padua, Bologna, Naples and Bari. Capex was EUR 173 million, excluding free of charge assets.
Africa and Asia
VimpelCom said Capex increased almost ten-fold to $616 million due to 3G license in Pakistan of $300 million and investments in 3G networks in Algeria, Pakistan and Bangladesh, coupled with network modernization in Pakistan.
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