MTNL plans to franchise operation of 3G services

NEW DELHI, INDIA: State-run Mahanagar Telephone Nigam Ltd (MTNL) invited expressions of interest from global firms or their Indian units to run third-generation (3G) mobile services.

The move from MTNL is aimed at improving the customer interest in the service. MTNL, which launched the much-hyped 3G service some six months back, did not get the expected response from the customers.

The tender is aimed at franchise deal to sell the 3G mobile phone services in Delhi and Mumbai on exclusive Revenue Sharing basis, the bid document dated July 14 said.

MTNL shall provide the infrastructure in MTNL premises (e.g. space, DC/ AC supply, Air conditioning etc.) on chargeable basis for co-locating the equipment of 3G-Franchisee, the bid document said.

In case connectivity is required at different location from Data Centre of participating company to MTNL premises, the same shall also be provided by MTNL on quarterly charge basis.

The franchise company is supposed to sign an agreement of ten years. MTNL didn't provide any financial details of the proposed contract.

During the first year of the deal, MTNL will ensure 100,000-subscriber 3G capacity each in the Delhi and Mumbai telecom service areas. In the second and third year, it will increase the capacity to 300,000 and 500,000 users for each of the two cities.

"The 3G franchisee should not be a licensed telecom service provider in Delhi or Mumbai and (should) undertake not to take such licenses in Delhi or Mumbai during the period of the contract with MTNL," the document added.