BSNL’s Scheme Rejected by Mobile Phone Operators

Private mobile phone operators in India in January 2011 rejected state owned Bharat Sanchar Nigam Limited's offer to share its third generation network with them. The mobile phone operators termed BSNL’s offer as too expensive and unatractive. BSNL had invited bids from mobile operators for roaming alliances to offer the high-end services, which include video calling and high-speed internet on phones. BSNL has 3G waves in all circles with the exception of Delhi and Bombay. BSNL had fixed 2.92% of the money it had paid to acquire 3G airwaves in a circle as the base price for the bids. Under BSNL’s scheme a mobile operator will have to pay the base price every year for the next 17 years, the period till which BSNL 3G spectrum will remain valid. BSNL’s scheme only covered as inter-circle roaming.

Mahanagar Telephone Nigam Limited (MTNL) which has licences to run 3G services in Delhi and Mumbai was more successful with this business model as two telcos— Tata Teleservices and Aircel bid to share its 3G airwaves in Delhi. Under the MTNL model, the two private operators would be allowed to launch high-end services in Delhi on MTNL's 3G network.