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MTNL to ink revenue-share pact with franchise for Wi-Max

Last Updated: Monday, August 10, 2009 - 16:30

MTNL intends to allow one successful bidder each in its licensed area of Delhi and Mumbai for the deployment and operation of its Wi-Max system on exclusive, revenue-sharing basis.

The network proposed to be deployed should provide fully converged broadband data and voice services such as access to internet, VPN clients, QoS to individual subscribers and cell support video conferencing, the PSU in said its global expression-of-interest (EoI) notice.

The one-time WiMAX spectrum fee that MTNL (to be decided after the auction of WiMax spectrum) will have to pay would be deducted from the revenues gathered from WiMAX operations by the franchise partner.

The Expression of Interest by MTNL said "4 percent of the total revenue or the amortised value calculated on the reserve price, or which ever is higher, will be set aside on a monthly basis to compensate MTNL towards one time spectrum charges".
"The bidder shall jointly work with MTNL for working out strategies for advertising, marketing and promoting broadband services, which shall be carried out under the MTNL brand. Sales and marketing and verification of customer`s bonafide will be the prime responsibility of the bidder," the EoI for the bids said.

The franchise should at least garner five lakh subscribers within a period of 5 years on a revenue sharing basis.

The government had allotted WiMAX spectrum to state-owned telcos BSNL and MTNL last year. However, both the PSUs will have to match the price offered by the highest bidders during the auctions for their share of the spectrum.

MTNL is a major telecommunication service provider in Delhi & Mumbai offering full range of telecom services solutions like Voice, Data, Internet, Broadband, VOIP and IPTV from its vast fixed & mobile networks in its license service areas of Delhi & Mumbai.

Bureau Report

First Published: Monday, August 10, 2009 - 16:30
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