MTNL to franchise its 3G service operations
By siliconindia   |   Friday, 17 July 2009, 18:14 IST   |    1 Comments
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MTNL to franchise its 3G service operations
Bangalore: Telecom operator MTNL (Mahanagar Telephone Nigam Limited) is inviting private players to roll out its services in Delhi and Mumbai since it managed to sell only about 1000 3G mobile connections in five months. The deal will be based on a revenue sharing basis. Despite the poor turnout for its services, MTNL has set stiff targets for the proposed private partner. The targets include assured revenue of 240 crore in each metro over a three-year period. If the targets are not met by the franchisee, MTNL will charge a penalty which will be 10 percent of the shortfall amount. Bids from interested players will be opened on August 4. 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 have 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." The telecom operator has also sought guaranteed minimum average revenue per user of 500 a month from the first day. Although 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 three years. Infrastructure including land and air conditioning on chargeable basis for co-locating the equipment of 3G franchisee will be provided by MTNL. The private player can use MTNL's spectrum but it will have to set up its own infrastructure.

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