New Delhi, Mar 4: Tata Communications on Tuesday said it would invest 500 million dollars for setting up a Wimax network in the country to offer high speed internet, and is talking to various investors for divesting a minority stake in its retail unit.

"We will invest 500 million dollars by 2010 for setting up Wimax network, for which we have tied-up with US-based Telsima Corporation. The company is also in talks with investors to sell a minority stake in its retail unit," Tata Communications' Retail Business Unit President Shankar Prasad told reporters.

However, he refused to divulge further details about the divestment plan.

Tata Communications, formerly known as VSNL, is targeting a customer base of two lakh in retail segment by 2009. It also plans to roll out Wimax in 110 cities for enterprise segment and 15 cities for retail by 2008.

"By 2010, we want to capture 20 per cent share of the total market," company's Vice President (Planning Broadband and Retail Business) Prateek Pashine said.

In the initial phase, the company would offer broadband internet access and content services to enterprises and residential customers in Delhi, Mumbai, Pune, Bangalore, Chennai, Hyderabad, Cochin, Chandigarh, and Kolkata, he added.

Telsima would provide Wimax infrastructure and subscriber equipment solutions to deploy commercial Wimax network. It is setting up 3,000 base stations, which will enable customers to access video, education, music and business services.