JUser: :_load: Unable to load user with ID: 544

Indian state giant MTNL welcomes global bids for 3G

Operating 3G services in India’s capital Delhi and major city Mumbai may soon be possible now that Mahanagar Telephone Nigam Ltd (MTNL, the Indian state incumbent), is inviting tenders to run these operations on a ten-year franchise. Delhi and Mumbai are both regarded as highly lucrative circles (markets) and represent very tempting opportunities. MTNL has itself made major investment in 3G.

Although 3G will be put out to tender, telecom licences will not be permitted in either location. There is also the question of what percentage of the revenue obtained by the 3G tenderers will be retained by MTNL. 
As Developing Telecoms has previously mentioned, initial take-up of 3G in India has been disappointing, one recent estimate being a mere 1,000 customers for MTNL’s 3G offering. BSNL and MTNL were both granted 3G spectrums so that they could provide high-speed Internet and video-conferencing.

In fact, MTNL has said that it will ensure 100,000 customers for both New Delhi and Mumbai in the first year. In the second year both cities will offer 300,000 customers and in the third it will have climbed to 500,000.

For all that, do not all rush. MTNL is setting its own conditions for those wishing to tender. Any company that is successful must be subject to a review after three of the ten years have elapsed. In addition, they must already have accumulated 1 million customers in two countries before even bidding. And if that is not enough, the lucky bidder will have had to have received revenues of US$310 million in each of those two countries for each of the last two years.

Once you actually do get operating in 3G in either city, the target is US$6 million in the first year, US$25 million in the second year and US$50 million in the third year. Do not run a shortfall as you will be penalised for 10% of that shortfall.
And be quick about it as you have until September 9 to get your bid in.

According to the MTNL website, the intention is to attract proposals from organisations that are strong enough financially to qualify as tenderers, who can manage and develop a customer base in every sense, and who can sell and market 3G.

More info:

Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.