MTNL to invite fresh bids to outsource 3G network

State-owned telecom firm MTNL today said it will invite fresh bids to outsource its 3G network in Mumbai and Delhi by next month.

"We are planning to come up with a fresh tender, hopefully by June," MTNL Chairman and Managing Director Kuldeep Singh told reporters here.

Late last year, the state-run telco which operates only in Delhi and Mumbai had shortlisted Virgin Mobile and Spice Group through a global tender to hand over the management and marketing of its 3G network in its service areas. However, recently, the telco scraped the tender stating regulatory concerns.

Singh also said that MTNL, which has to pay Rs 6,534 crore to the government for the 3G spectrum fee, has not sought any exemption beyond May 31, as the company has enough cash reserves. "We have not sought any exemption from the government. We have enough cash reserves. As of now we have not decided on the mode of payment," Singh said.

MTNL has received the demand order from the telecom department for payment of fees for 3G radiowaves and as per the rules it has to make the payment by May 31.

For the spectrum in the Delhi and Mumbai circle, it has to make a payment of about Rs 6,534 to the government.

The company has a cash reserve of Rs 5,000 crore. For the rest of the amount the company is in talks with banks. Singh, however, declined to name the banks.

He also said the company has no plan to increase its On 3G tariffs. Further, Singh said its existing 2G users will have the option of migrating to the high-speed 3G services.

MTNL has 46 lakh 2G mobile subscribers, and has 4 lakh 3G users.