MTNL seeks global partner for WiMax
07-08-2009
Two lucrative catchment areas, Mumbai and Delhi, make the offer potentially promising
Mahanagar Telephone Nigam Ltd. has sought initial bids from global technology firms or their Indian units for a franchise deal to sell its broadband wireless services based on WiMax technology.
The deal will be on a revenue-sharing basis, MTNL says in a notice on its Web site.
The tender is the latest in a series of efforts by India's two state-owned telecom operators, BSNL and MTNL, to get outside help to compete with private sector rivals in India
MTNL and BSNL have been given the requisite spectrum to provide WiMax services in India, ahead of the pending auction for such services for private operators.
MTNL says it will sign an agreement initially for seven years with one franchisee company each for Delhi and Mumbai. "This revenue share is only for providing broadband access to customers. All other revenue derived from various value-added services shall be shared between the parties on mutually-agreed terms" the bid document says.
"The proposed WiMax system will provide fully converged broadband data and voice services such as access to internet, virtual private network clients"
The bidders should provide a performance guarantee deposit of Rs.150 million ($3.1 million), valid for at least three years, for each of the cities.
The franchisee shouldn't be a licensed telecom service provider in Delhi or Mumbai and shouldn't enter into any similar contract with any other telecom service provider, or hold any type of telecom licenses, in Delhi or Mumbai during the period of the contract with MTNL, it added.
MTNL said also it plans to achieve 500,000 users for its WiMax services in the next five years.
During the first year of the deal, MTNL will ensure 100,000-subscriber WiMax capacity each in the Delhi and Mumbai telecom service areas. In the second and third years, it will increase the capacity to 250,000 and 400,000 users for each of the two cities.In the first year of operations, the bidders should gain a minimum of 50,000 users in each of the two cities. The user base should be 150,000, 300,000 and 400,000 in the second, third and fourth years of operations, MTNL says.
Mahanagar Telephone Nigam Ltd. has sought initial bids from global technology firms or their Indian units for a franchise deal to sell its broadband wireless services based on WiMax technology.
The deal will be on a revenue-sharing basis, MTNL says in a notice on its Web site.
The tender is the latest in a series of efforts by India's two state-owned telecom operators, BSNL and MTNL, to get outside help to compete with private sector rivals in India
MTNL and BSNL have been given the requisite spectrum to provide WiMax services in India, ahead of the pending auction for such services for private operators.
MTNL says it will sign an agreement initially for seven years with one franchisee company each for Delhi and Mumbai. "This revenue share is only for providing broadband access to customers. All other revenue derived from various value-added services shall be shared between the parties on mutually-agreed terms" the bid document says.
"The proposed WiMax system will provide fully converged broadband data and voice services such as access to internet, virtual private network clients"
The bidders should provide a performance guarantee deposit of Rs.150 million ($3.1 million), valid for at least three years, for each of the cities.
The franchisee shouldn't be a licensed telecom service provider in Delhi or Mumbai and shouldn't enter into any similar contract with any other telecom service provider, or hold any type of telecom licenses, in Delhi or Mumbai during the period of the contract with MTNL, it added.
MTNL said also it plans to achieve 500,000 users for its WiMax services in the next five years.
During the first year of the deal, MTNL will ensure 100,000-subscriber WiMax capacity each in the Delhi and Mumbai telecom service areas. In the second and third years, it will increase the capacity to 250,000 and 400,000 users for each of the two cities.In the first year of operations, the bidders should gain a minimum of 50,000 users in each of the two cities. The user base should be 150,000, 300,000 and 400,000 in the second, third and fourth years of operations, MTNL says.
