MTNL to tender for 3G partner again
26-05-2010
Seeks a proper return on 3G to offset costly payment for 3G spectrum
Indian public sector telco Mahanagar Telephone Nigam Ltd (MTNL) plans to issue a fresh tender to select a franchise partner for its 3G operations, chairman and managing director Kuldeep Singh said
The operator had invited bids in July 2009 for a franchise deal to sell the 3G mobile services on a revenue-sharing basis and had shortlisted Virgin Mobile and Spice Group. However, the tender was later called off due to regulatory issues.
"We plan to launch the tender by June. It will be drafted keeping in mind all the regulatory issues" Mr Singh said. Spice Mobiles and Virgin Mobile who were shortlisted earlier will also be considered, he added.
MTNL is currently working out its funding plans to pay off the fee for 3G airwaves. The operator plans to use its current cash reserves, which stands at about Rs 5,000 crore to pay off a significant part of the amount. It may also opt for a bank loan to partly fund the fee, Mr Singh said.
MTNL along with BSNL were given bandwidth for 3G services ahead of private operators who had to go through an auction, on the condition that the telcos would pay the winning bid price for each service area. The 3G auction ended last week with pan-India price of Rs 16,750.6 crore.
Input from Economic Times
Indian public sector telco Mahanagar Telephone Nigam Ltd (MTNL) plans to issue a fresh tender to select a franchise partner for its 3G operations, chairman and managing director Kuldeep Singh said
The operator had invited bids in July 2009 for a franchise deal to sell the 3G mobile services on a revenue-sharing basis and had shortlisted Virgin Mobile and Spice Group. However, the tender was later called off due to regulatory issues.
"We plan to launch the tender by June. It will be drafted keeping in mind all the regulatory issues" Mr Singh said. Spice Mobiles and Virgin Mobile who were shortlisted earlier will also be considered, he added.
MTNL is currently working out its funding plans to pay off the fee for 3G airwaves. The operator plans to use its current cash reserves, which stands at about Rs 5,000 crore to pay off a significant part of the amount. It may also opt for a bank loan to partly fund the fee, Mr Singh said.
MTNL along with BSNL were given bandwidth for 3G services ahead of private operators who had to go through an auction, on the condition that the telcos would pay the winning bid price for each service area. The 3G auction ended last week with pan-India price of Rs 16,750.6 crore.
Input from Economic Times
