Indian mobile operator Aircel, a unit of Malaysia's Maxis Communications, will invest some US$500 million (RM1.9 billion) over the next three years to expand its coverage, a report said today.

Maxis chief executive Jamaludin Ibrahim told the New Straits Times that the investment was necessary to make Aircel a pan-Indian player.

Some US$300 million of the capital required for the expansion plan has already been raised from 11 Indian banks, he was quoted as saying.

Jamaludin said the new investment would cover expansion in its two main zones of Tamil Nadu state and its capital Chennai, as well as 10 other "circles" - areas which generally correspond to a state.

Aircel recently launched coverage in West Bengal, Orissa, Assam, North-East and Jammu and Kashmir. It expects to launch five other coverage areas in Bihar, Himachal Pradesh, Madhya Pradesh and Uttar Pradesh.

Jamaludin's comments came after Maxis' extraordinary general meeting seeking shareholder approval of its US$1.08-billion acquisition of Aircel. It is now waiting for regulatory approval from the Malaysian and Indian authorities.

Controlling equity interest

Upon approval, Maxis will hold a controlling 74 percent equity interest in Aircel - 65 percent as a direct stake and the remainder via joint-venture Deccan Digital Networks Private Ltd.

Asked if Maxis is interested in acquiring Indian mobile phone operator Spice Telecom, Jamaludin said: "We have been talking to many parties, not just for equity reasons, but also alliances in areas such as infrastructure sharing and product development."

Maxis, controlled by tycoon Ananda Krishnan, is Malaysia's top telecommunications company with nearly eight million subscribers.