IndiaRetailBiz

Kishore Biyani promoted Future Group, which operates in multi-faceted retail consumption space, is looking at foraying into fast growing mobile telecom business.

According a monthly letter written by Biyani, Future Group wants to become a franchisee of mobile network operators. Future Group, it may be noted, has no service provider’s licence or spectrum to offer mobile services on its own. It canunder the current dispensation, however, operate as a franchisee of existing service providers.

Recently, the UK-based maverick entrepreuner Bransonson’s Virgin Mobile has entered into such an arrangement with Tata Telecom, a leading CDMA operator owned by the Tata group.

Future Group, although not in a great hurry to enter this business, has already appointed global consultany McKinsey & Co as well as Value Partners Group of the UK to advise the group on its telecom ambitions. Future Group has set aside Rs 100 crore to invest in the venture. It has also begun parleys on the subject with a few network providers.

India has already usurped the US as the second largest mobile market in the world. China continues to occupy the top slot in the world rankings.

Indian government is not averse to ushering in the MVNO model in the country. Mobile Virtual Network Operator (MVNO) is quite popular all over the model, wherein a party interested in providing mobile services under its own brand can hire the same from an existing network operator. TRAI — the telecoms regulator — has already begun consultations in this direction with various stakeholders for formulating guidelines for MVNOs.

Future Group, which operates several lifestyle and value retail chain under different formats, apart from retail, also has interests in real estate, insurance, logistics, branding and financial services.