www.WirelessFederation.com/news: MTNL, the state-owned mobile operator, which has been offering 3G services from past five years and has managed to secure 1000 3G connections, has invited private firms to launch its service in Delhi and Mumbai on a revenue sharing basis. Though the operator 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 3 year period.
If the franchisee fails to meet the targets, MTNL will charge a penalty which will be 10% of the shortfall amount.

MTNL has also sought a guaranteed minimum ARPU 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 3 year period.
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 for the interested firms will start on 4 August.
MTNL will provide the infrastructure land, air conditioning on chargeable basis for co-locating the equipment of 3G franchisee. While the private player can utilise MTNL’s spectrum, it will have to set up its own infrastructure.