Anil Dhirubhai Ambani group firm Reliance Communications Ltd and French-American telecom service provider Alcatel-Lucent will form a joint venture to tap the managed nework service market.

The deal is expected to cost Reliance Communications over $400 million.

The joint venture will cover Reliance Communications' network in 12 circles, mainly in the north and western regions, Reliance said in a release.

The joint venture will initially cater to outsourcing requirements of Reliance Communications and the deal is expected to generate business of the value of around $500 million in seven years, it added.

The joint venture, to be rolled out nationally later, will cover both CDMA and GSM networks of Reliance Communication. It will also cater to the global operators.

Reliance Communications, India's second-largest mobile service provider, said it would own 33 per cent of the venture for network management.

MNS market comprises services like data integration, VPN (virtual private network) services, network management, performance management, fault management, change management, configuration management, security and application outsourcing.

Reliance Communications, which has received GSM licence under the dual technology clause, is likely to start GSM-based nationwide mobile services by the end of current financial year.

Reliance Communications would be the only operator in the country offering mobile services in both CDMA and GSM platforms.

The company has received start up GSM spectrum to offer wireless services and also CDMA spectrum in the remaining two circles of North East and Assam.