MTNL zeroes in on technology to launch BWA next year

State-owned Mahanagar Telephone Nigam Ltd (MTNL) is understood to have zeroed in on the long-term evolution (LTE) technology for launching its broadband wireless services. It expected to roll out the services in the second half of next year, a senior MTNL official told Business Standard.

MTNL has already invited expression of interest (EoI) for outsourcing of its broadband wireless access (BWA) business. The deal would be based on a revenue-sharing arrangement. The winner would have to manage the services and network, the official said.

However, the EoI document is silent on the technology. MTNL has also extended the date of submitting bids to January 23, from January 4. Both technical and commercial bids will be opened on the next day.
 

TREADING A NEW PATH

• May roll out services next year
• Invites expression of interest to outsource broadband wireless spectrum business
• Deal to be based on a revenue-sharing arrangement
• Extends date to submit bids to January 23, from January 4

Private telecom companies, including Reliance Industries, have also decided to go with the LTE over worldwide interoperability for microwave access (WiMax) technology. Both TD-LTE (time division-LTE) and WiMax are fourth-generation (4G) technology, which offer wireless broadband at high speeds. In TD-LTE, subscribers can get a data speed in the range of 60 to 100 mega bits per second (mbps). In WiMax, the speed is around 40 mbps. Apart from the higher speed, the LTE-based service scores over Wimax because of its compatibility with both 2G and 3G networks.

Ahead of the BWA spectrum auction for private players, MTNL was given a slot of 20 MHz each in the Delhi and Mumbai circles for Rs 4,534 crore in 2010. It had to match the winning bidding in the auction held for private companies. It has shelved its plan to outsource the 3G business because of the department of telecommunications’ (DoT’s) latest decision to ask Bharti Airtel, Vodafone and Idea Cellular to stop offering 3G mobile services through roaming arrangements in circles where they didn’t have the spectrum, the official said. It had invited bids for outsourcing of 3G network twice. The first one was scrapped because of regulatory concerns.

MTNL has been making losses since quite some time because of retirement benefits, high wage bill and dipping revenues because of stiff competition in the industry. It has asked DoT to clear a voluntary retirement scheme (VRS) that will be offered to a third of its workforce, 15,000 employees, this financial year. The proposal has been cleared by the MTNL board.

The scheme will require the company to make a one-time payment of Rs 2,000-3,000 crore to employees opting for the scheme, and MTNL has asked DoT to help it financially in implementing the scheme. MTNL has 45,000 employees. It had an employee base of 61,967 in 1998-99, which came down to 44,910 in 2009-10.