Tesco has chalked out an expansion plan in a bid to bolster its telecom arm. As part of its diversification strategy, the company has lined up ambitious plans of setting up as many as100 mobile shops in its stores, more than double the current number.

Tesco, which started its operations with food products, now has a wide array of products like consumer durables, electronic products, banking services etc under its fold. To increase its presence in the wireless communication domain, Tesco plans to step up its mobile phone and mobile broadband businesses. This diversification venture is expected to pump in £1 billion to Tesco’s annual income.

The announcement has lead to a lot of market speculation that Tesco might eventually dethrone Carphone Warehouse as the undisputed leader of mobile retail in the UK. However, such assumptions are unfounded, feels Shaun Collins, an analyst at CCS Insight, which provides analysis and foresight into the telecoms industry. To keep up-to-date, or to learn more about mobile broadband take a look at a dedicated website, such as Mobile Broadband Genie.

According to Mr. Collins, this is a major step towards Tesco’s strategy of venturing into a gamut of businesses and acquiring a significant market share through its massive customer base, but in no way it heralds a downtrend for Carphone Warehouse. Tesco’s count of 100 stores will still remain quite low in comparison to the 900 stores that Carphone Warehouse boasts of.

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