After 3G, MTNL to franchise its WiMax services
Bangalore: After choosing to franchise its 3G services, state owned telecom operator, MTNL (Mahanagar Telephone Nigam Limited) has announced that it is looking to franchise its WiMax based hi-speed broadband services. MTNL is inviting bids from global players to set up and run its WiMax operations in Mumbai and Delhi. MTNL expects the successful bidder (one each in its licensed area of Delhi and Mumbai) to provide fully converged broadband data, voice services such as internet and VPN (Virtual Private Network) and support services such as cell support video conferencing, IP multicast, backhaul to Wi-Fi and wireless leased lines. The six year contract will be based on a revenue sharing model and it will be subject to review every two years. The contract can be terminated if the franchisee partner does not meet prescribed targets, MTNL stated in its global expression-of-interest (EoI) notice. The one-time WiMax spectrum fee (to be decided after the auction) that MTNL will have to pay would be deducted from the revenues gathered from WiMax operations by the franchisee partner. MTNL is looking for better customer focus and revenue generation through this model, as there has been poor turnout for its services.