BSNL to outsource 3G mobile services

MUMBAI, INDIA: State-run telecoms Bharat Sanchar Nigam Ltd plans to outsource its third-generation mobile services and is working on details for a franchisee agreement, the Business Standard reported on Monday.

The company will invite expressions of interest by the end of this month, the newspaper quoted BSNL Chairman Kuldeep Goyal as saying. The paper said outsourcing would help BSNL reduce investments it needs to roll out the 3G services.

Lat month, while talking to CIOL, Goyal had said that BSNL was considering a franchisee business model for its 3G services to reach out to a wider circle.

Once the model comes to effect, BSNL will become the second company to have franchisee model for 3G after MTNL.

Goyal told the paper the franchisee could be an existing mobile service provider or a company that had not won or bid for 3G spectrum.

The franchisee will manage customer acquisition, marketing and sales of BSNL's 3G services across the country, he said.

Vodafone and Bharti Airtel paid a combined $5.1 billion for 3G mobile licences in India last month, ending an epic auction that yields a bonanza for a deficit-strapped government.