News: Reliance Retail signs telecom deal with Bharti

(ACERC 10/01/2007) Mumbai - Reliance Retail has signed a deal with Bharti Airtel to source mobile and enterprise communication services (which includes mobile, broadband and leased line services) for its retail venture, expected to have a network of 8,000 stores.

Reliance is also looking at a pan-India Wimax network for back-end communication needs of its SEZs, which may be extended to meet needs of its retail venture in the long run. Reliance plans to invest about $750 million (Rs 3,400 crore) to obtain spectrum and lay out the network.

Reliance Retail has already announced that it would be looking at a GSM-Wimax roll out for its mobile and enterprise communication needs. The Reliance group plans to capitalise on the retail opportunity. The retail market size in India is estimated to be about $300, billion which is expected to grow to $427 billion by 2010. Organised retail currently accounts for only 2-3% of the retail market in India.