Reliance Communications (RCom) estimates its capex to start decreasing from next year because nearly all of its ventures have already reached the implementation phase, reports the Economic Times.

At the annual shareholders meeting in Mumbai, RCOM chairman Anil Ambani said that the company expected strong cash flows. He added that the reduced capex would not affect the company’s plans. The company plans to begin GSM operations shortly and is using its CDMA network for launching its GSM services, which would reduce its capex.

According to Ambani, RCom is currently trying out GSM services in Mumbai and Delhi. He assured that there were no slow down in plans as all its projects were well funded.

Ambani stated that the company had set aside a capex of Rs 25,000 crore ($5.3 billion) for FY09. He said that RCom would invest a total of Rs 40,000 to 50,000 crore ($10b-$12b) between FY08 and FY09. All benefits from this investment would flow through the next year onwards, causing a major increase of rate in earnings growth.

Reliance had a subscriber base of more than 54 million subscribers at the end of August, with Vodafone Essar in the next position with 52.7 million subscribers. While RCom provides mobile services in all the circles, Vodafone is present in only 16 service areas of India.

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Rcom’s GSM launched in Delhi and Mumbai: here
RCom trials GSM in Bangalore: here