Wednesday, September 3, 2008

BSNL seeks franchisees for WiMax rollout

NEW DELHI: State-owned telecom operator Bharat Sanchar Nigam Limited (BSNL), which has got spectrum for pan-India rollout of wireless broadband and WiMax services, will soon float expression of interest (EoI) for identifying potential franchisees for launching these services in 16 circles. BSNL will continue with the franchisee model for WiMax rollout in the country.

As first reported by ET, BSNL had already chosen US-based mobile WiMax systems provider Soma Networks as a franchisee to rollout WiMax services in three states including, Gujarat, Maharashtra and Andhra Pradesh. The alliance is expected to provide broadband data and voice services to more than 200 million people.

The deployment process in these states has already surpassed the deadline of August 15 this year, due to frequency issue, a BSNL source told ET. The current franchisee model has a revenue sharing structure of 70:30, with 70% of revenue reserved for the franchisee. This structure will differ from circle to circle, from state to state, according to the franchisee and the framework for bids, the BSNL executive added.

BSNL is also keen on following the franchisee model for rural WiMax deployment. It has floated a tender for 1,000 base transceiver station (BTS) and is expected to shortlist a potential player for deployment of 1 BTS by end of September this year. The operator expects to set up 500 BTSs by March 2009. BSNL has rights to 1,000 blocks.

With a rapidly growing middle class and highly educated population, India is seen as a country that will have enormous potential for broadband services. By deploying end-to-end mobile WiMax solution through franchisee model, BSNL will bring a full range of multimedia services to the entire country. India has 4.38 million broadband internet users as of June 2008, as per the latest report from telecom regulator Trai.

Source : EconomicTimes

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