Public CompanyMTNL takes franchise route to sell 3G services
State run Mahanagar Telephone Nigam (MTNL) has taken to the franchise route to sell its 3G services in Delhi and Mumbai and has floated a global Expression of Interest (EoI) for 3G Services Franchisee.
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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 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.
With 3G spectrum auction for private players slated later this year and their services starting thereafter, MTNL has decided to get its branding and marketing act together before the first mover advantage goes out, the players said.
Although the company says it is getting a good response to its 3G services, but reports say the number is below 1,000.