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

MTNL to ink revenue-share pact with franchise for Wi-Max
PTI
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First Published: Mon, Aug 10 2009. 05 14 PM IST
Updated: Mon, Aug 10 2009. 05 14 PM IST
New Delhi: After opting for the franchise route to provide 3G services, state-run MTNL now wants to adopt the same model for Wi-Max based hi-speed wireless broadband services for better customer focus and revenue realization.
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 Wi-Max spectrum fee that MTNL (to be decided after the auction of Wi-Max spectrum) will have to pay would be deducted from the revenues gathered from Wi-Max operations by the franchise partner.
The expression of interest (EoI) by MTNL said “4% 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 Wi-Max 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.
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First Published: Mon, Aug 10 2009. 05 14 PM IST
More Topics: MTNL | Wi-Max | Telecom services | Broadband | Spectrum |