MTNL takes franchise route to sell 3G services

It has sought proposals for providing end to end services to 3G customers by Indian, global, subsidiary or JV companies as a 3G franchisee of MTNL in Delhi and Mumbai on exclusive revenue sharing basis through this EoI.

This EOI is intended to seek proposals from prospective participants who have resources and infrastructure to acquire, serve and retain customers and provide customer care.

The franchisees are also to set up their own payment collection system mechanism, create sales and distribution network to promote MTNL brand or create their own branding and marketing of 3G services and products.

They are also to advise and package different tariff plans, Value Added Services and content services for 3G.

With a penalty clause for missing targets, the PSU has set a target that includes assured revenue of Rs 240 crore (Rs 2.4 billion) in each metro over a three-year period.

MTNL's decision not to market its own 3G services after launching the service 6 months ago was taken after the company failed to acquire adequate amount of customers in the metros despite having the first mover advantage, said a private operator.