MTNL inks CDMA deal with IOL Netcom

Following in the footsteps of the TataTeleservices-Virgin Mobile deal, state-owned telecom operator Mahanagar Telephone Nigam (MTNL) has entered into a CDMA franchise agreement with Mumbai -based IOL Netcom.

MTNL, which operates in Delhi and Mumbai, has invited bids for its CDMA operations. IOL Netcom, which emerged as the winner in both circles, can scale up to 2 lakh codes (customers) in each circle, according to the agreement.

“We have GSM as well as CDMA services. However, while our GSM services attract about 1 lakh customers every month, the CDMA growth was a little slow, for which we decided to enter into this model,” MTNL CMD RSP Sinha said.

“We had developed the franchise model even before the Tata-Virgin deal came through. Our project got a little delayed, though,” he added.

“Depending on the response that we get from this venture, we will be able to decide whether we should open more codes for IOL Netcom if required,” Sinha said.

IOL Netcom plans to introduce its IOL Mobile brand within 90 days.

According to a company statement, IOL Netcom will also introduce a variety of value added services. IOL Netcom’s CDMA mobile services will offer multi-play services, comprising mobile, data card, desktop CDMA phone, IPTV and broadband services, among others.