Mahanagar Telecom Nigam Ltd (MTNL), a state-owned telecom firm providing services in Indian Metros, has invited bids to roll out 3G services in Delhi and Mumbai, the most lucrative telecom circles in the country. The firm intends allotting 3G tenders on a franchisee basis for a 10-year period to successful bidders.

The firm said that it would sign a revenue sharing agreement with successful bidders, provided such firms roll out telecom services in the metro cities of Delhi and Mumbai during first 10 years of the deal.

MTNL will review the deal after every three years, and telecom companies with revenues of over Rs 150 crore and a minimum of 1 million customers enjoying their 3G services, can apply for the franchise.

MTNL said: “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."

The government had already allotted 3G spectrum to state-owned telecom giants BSNL and MTNL, enabling them to roll out high-end services, such as video conferencing and high-speed internet, to the customers.

MTNL had launched third generation services in Delhi in mid January. However, due to poor technical and marketing services, the company has just 1000 3G users in Delhi till date.