Reliance Infocom to Unveil Web Stores

Reliance Infocom plans to launch its first "Web Store" at Worli,
Mumbai by the end of this month. The company has recently called for franchisees
for its national retail chain which would sell Reliance Infocom products and
services. Besides, Web Stores would also offer broadband based digital
communications and entertainment services.

Web Stores come equipped with a consumer convenience centers which would sell
mobile handsets, calling cards, starter packs and recharge vouchers. The
facility also boasts of food and beverages area. Broadband Center within the Web
Store would offer 2 mbps internet access per PC, multi and single player gaming,
video conferencing and CD burning of music and movies. Though Web Store is
envisaged on the franchisee model, Reliance is investing in the purchase of all
proposed webstores. Apart from investing in the real estate, hardware and
furniture, Reliance would also provide training program for its franchisees.
However, franchisees would need to incur an investment to the tune of 20 lakhs
towards operating costs apart from Rs 4-6 lakh as one time, non-refundable
joining fee.

With Reliance all set to launch its CDMA-based services, the company is
building a nation-wide retail chain to match the distribution reach of GSM
operators. Since CDMA is phone-based, unlike GSM which is SIM-based, the
company’s game-plan obviously is to build out a distribution channel of its
own, rather than relying on mass market retailers. Reliance has recently entered
into alliances with both LG and Samsung for CDMA handsets, while its plans to
manufacture handsets at a facility in Gujarat are yet to be materialised.

Jeevan M T in Mumbai