Spice, Virgin may run MTNL’s 3G services
State-run MTNL's 3G bid has got response from Richard Branson's Virgin Group and BK Modi-run Spice Group; while many private and international telecom giants refrained from participating in the 3G bid, given its low scope, dominance of other private players and less effectiveness.
MTNL Director (technical) Kuldip Singh said: "We have got bids from Virgin and Spice and are evaluating the technical parameters. We will look at their financial bids only if they are technically qualified."
The State-owned Mahanagar Telephone Nigam Ltd, which dominates fixed line telephones in New Delhi and Mumbai, intends to roll out 3G services on franchise basis and floated a tender in July, after it failed to attract people towards its third generation services, given poor service and less marketing efforts.
AT&T and France Telecom were earlier expected to participate in the bid, but neither of the two companies turned up for the final bidding, apparently, due to large scale telecom penetration by Bharti Airtel and Vodafone Essar, who will definitely roll out 3G services after allocation of 3G frequency spectrum by the Union government.
Spice Group promoter Dilip Modi said: "We have formed a JV for the MTNL bid and the stakes of both partners in the JV are still being worked out. Our intent is clear-we are a serious bidder."