Shortly, at about 3:30pm today, the applications for MTNLs 3G Mobile Content services mandate will be opened. MTNL is setting up a franchise based system, and has invited applications from potential 3G Content Aggregators to set up their Content Delivery Network Infrastructure. The sense that we're getting from content owners and service providers is that the tender is too expensive, and given the terms of the deal, isn't really worth it. One top executive told us that that "If you're a revenue focused company, you will not even think about this." So what is wrong with MTNLs 3G Mobile Content Services tender? It apprears to be a case of having your cake and eating it too. Some key terms of MTNLs tender: 1. Three Year, Non-Exclusive deal: The contract is for three years and is non-exclusive, and MTNL may sign up two bidders each in Delhi and Mumbai, with the same revenue share arrangement with both. MTNL has the right to increase the number of service providers for each city. The bidder or the lead partner should have a net worth of minimum Rs. 30 Crores or minimum turnover of Rs. 20 Crores, and should not be an ISP, UASL or CMTS service provider. 2. Revenue Share Arrangement and Minimum Guarantee: The bidder has to quote percentage of revenue that it proposes to share with MTNL separately for Delhi and Mumbai. They will also have to share revenue from advertisements on the network, after deducting the cost of the Ad…
