MTNL is still expecting Jadoo (magic) from 3G services in India. The public sector company is seeking out franchisees for 3G services. Now the only reason that a company would enter into such an agreement - similar to an MVNO service - is that it's an opportunity to enter the Indian telecom market, and the tie-up will facilitate similar tie-ups with other telecom operators. Which is where this Tender document falls apart, because of the following special conditions: 5.1 MTNL may shall sign a mutually agreed exclusive (exclusivity for both MTNL & 3G-Franchisee) agreement with the selected company (3G-Franchisee) each in Delhi and Mumbai. 5.2 The agreement with the 3G-Franchisee is expected to be operative for 10 years. An exclusivity pact with MTNL for a period of 10 years means that the company in question is limited to the cities of Delhi and Mumbai, which MTNL is only allowed to operate in. Both circles are saturated and very competitive, albeit with higher ARPU than the other circles. An agreement which included both MTNL and BSNL, and hence allow the franchisee a pan-India market to address, would have been more attractive as an option. Download the MTNL 3G Franchisee EOI Document. Indian Companies Cannot Participate, Except As A JV While it's not explicitly pointed, out, it's clear that Indian companies will not be able to participate on their own because of the eligibility criterion laid out. According to sections 4.2 of the tender, the participating company, is global parent, or the…
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