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Reliance plans broadband outlets in 500 cities

BS Corporate Bureau

Telecom major Reliance Infocom is planning to buy or lease premises in 500 cities for setting up its exclusive retail outlets across the country.

These centres will come up by the end of the current year. The company is investing Rs 250 billion in its telecom ventures. The proposed retail outlets will offer broadband services.

Reliance Infocom is in the process of setting up a 60,000 km fibre optic cable network covering more than 500 cities. The network would enable Reliance Infocom to offer broadband connectivity for various applications based on voice, video and data, company executives told Business Standard.

The group plans to avoid the popular franchise route in the domestic telecom market. Though the group will have to spend huge funds for setting up its own centres across the country, Reliance Infocom can rake in more revenue because the company will not be sharing its revenue with franchisees.

In fact, all major cellular players like BPL Mobile, Mahanagar Telephone Nigam Ltd and Bharti are offering services through their own outlets and via franchisees. This is aimed at reducing the total capital cost in the initial phase of setting up the infrastructure.

The Reliance group, as part of its decision to become an integrated telecom player, is planning to unveil a number of telecom services like basic with limited mobility, and national and international long-distance telephony through the Reliance Infocom umbrella.

Reliance has already bagged basic licences for 18 circles.

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