UPDATE 1-India Reliance Comm sees JV rev at $500 mln in 7 yrs

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MUMBAI, May 12 (Reuters) - A venture of India's Reliance Communications (RLCM.BO: Quote, Profile, Research, Stock Buzz) and telecoms equipment provider Alcatel-Lucent (ALUA.PA: Quote, Profile, Research, Stock Buzz) for network management services expects revenues of $500 million in five to seven years' time.

Reliance Communications, India's second-largest mobile operator, said on Monday it would own 33 percent of the venture, with the French-American firm owning the remainder.

The joint venture, which will employ about 1,000 people initially, will first provide managed services for Reliance Communications' CDMA and GSM networks in India. It will take on projects for other firms and in other parts of the world.

"The joint venture will support the expansion and growth of Reliance Communications, bringing in greater operational efficiency," Sandip Biswas, head of network management at Reliance Communications, told a news conference.

The company estimates the global market for managed network services to reach $16 billion by 2012.

Shares in Reliance Communications closed 2 percent higher at 549.95 rupees in a Mumbai market that gained 0.7 percent. (Reporting by Rina Chandran; Editing by Ranjit Gangadharan)