MTNL seeks pvt players to run its 3G services

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New Delhi, July 15

Having managed to sell only about 1,000 third generation mobile connections in five months, Mahanagar Telephone Nigam Ltd has now invited private players to roll out its services in Delhi and Mumbai on a revenue-sharing basis.

Though the public sector undertaking has not managed to push the uptake of the new technology, it has set stiff targets for the proposed private partner. The targets include assured revenue of Rs 240 crore in each Metro over a three-year period.

If the franchisee fails to meet the targets, MTNL will charge a penalty which will be 10 per cent of the shortfall amount.

MTNL has also sought a guaranteed minimum average revenue per user of Rs 500 a month from Day One. While the partnership will be on an exclusive basis, MTNL has reserved the right to change or bring in additional franchisees if the private player misses targets after the three-year period.

Speaking to Business Line, Mr R. S .P. Sinha, Chairman and Managing Director, MTNL, said, "We are looking to partner someone who has the experience in rolling out 3G services. We are seeking proposals from the prospective participants who has necessary resources and infrastructure to provide customer care, set up own payment mechanism, create sales and distribution network to promote MTNL brand or create own branding for 3G services. Since 3G is all about data and content, it is a different ball game from voice services." Bids from interested players will be opened on August 4.

MTNL shall provide the infrastructure including land, air conditioning on chargeable basis for co-locating the equipment of 3G franchisee. While the private player can use MTNL's spectrum, it will have to set up its own infrastructure.

Taken from Business Line

thehindubusinessline.in