India's MTNL Seeks Assistance to Promote its 3G Network

Published on: 1st Jan 1970: 1:33am

India's state-owned telco, MTNL has invited bids from companies to take over the management of its 3G network, in an apparent admission that it has failed to promote the service successfully to customers. The network is reputed to have signed up a mere 1,000 subscribers since it launched the 3G service six months ago.

The company was expected to use the lead it has been granted over the private operators to sign up the desirable early adopters and high spending customers, but has been criticized for its poor marketing.

"This EoI is intended to seek proposals from the prospective participants who has necessary resources and infrastructure to acquire, serve and retain customers, provide customer care set up or set up own payment collection system mechanisms, create sales and distribution network to promote MTNL brand, or create own branding and marketing of 3G services and products, advise and package different tariff plans, value added services and content services for 3G Access Network," the company said in a statement on its website.

The tender document blocks any company that is planning to bid for the private 3G licenses, but will offer a revenue share deal to the contractor. It is expected that quite a few companies who do not have a presence in the country could be interested and if the project is a success will use that as a stepping stone for entering the market more formally. The opportunity for the managing company to use its own brand name could prove a valuable draw to bidders.

The networks in Delhi and Mumbai are being offered separately, although it is presumed that any winner would be asked to manage both markets. The contracts would be signed for a 10-year period, with a review after three years.

 

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