The state owned telecom service provider Bharat Sanchar Nigam Limited (BSNL), is planning to outsource its 3G (third generation) mobile telephony services. The telecom company is already working on the details for a franchisee agreement.
COMPELLED BY the intense financial crisis, Bharat Sanchar Nigam Limited (BSNL), the state owned telecom service provider is planning to outsource its 3G (third generation) mobile telephony services. The telecom company is already working on the details for a franchisee agreement. The chairman and managing director of BSNL, Kuldeep Goyal stated that by the end of this month the company will invite expressions of interest (EoIS) from potential players in this field. Company sources said that the franchisee partner can be an existing mobile service provider but it should not possess 3G license in the country.
BSNL and MTNL, the two state owned telecom companies got the 3G spectrum much ahead of other private telecom companies, as the government wanted to provide these two companies the advantage of early entry. Providing 3G services involves staggering amount of investment and technical up gradation. BSNL wants to cut down this investment to some extent, by outsourcing necessary services. The company is hopeful that in the initial stages around five per cent of its customer base will come from 3G services and in later stages the figure will rise to 10 to 15 per cent.
As per industry experts BSNL couldn’t leverage on the advantage of early entry in providing 3G space. Currently the company is providing 3G services in 450 cities and is planning to expand the service to 750 cities by the end of this year. Bharti Airtel, Vodavone, Aircel, Reliance Communication etc are some of the private players who will very shortly join the 3G race.