Motorola bags MTNL contract

NEW DELHI: US-based networks major Motorola on Thursday announced that it had bagged a contract with state-owned MTNL to supply Universal Mobile Telecommunications Service (UMTS) solutions for the PSU's upcoming two million GSM lines in Delhi and the National Capital Region (NCR).

As per the agreement between the two companies, Motorola will also undertake network deployment and maintenance services.

This also marks the first instance of the UMTS network deployment in India. Motorola has however said that the deployment will take place only "after the relevant regulatory authority of India has authorised spectrum allocation and appropriate licenses for it are obtained by the network operators".

MTNL has ordered UMTS equipment for validation and plans to place further orders subject to allocation of frequency spectrum. Once UMTS equipment is in place, value added services are planned to be deployed to enable MTNL to gain new revenue streams, the company said.

"This will enable MTNL to deploy wireless platforms that will address issues such as achieving a low cost-per-subscriber ratio and maintaining consistent service quality, within high-growth markets. The network will be deployed in two phases, each covering approximately one million subscribers. A portion of the deal is subject to 365 day payment terms," Motorola said in a statement. "This collaboration with MTNL demonstrates Motorola's commitment to build the best-in-class wireless network that will be the backbone for superior wireless services in India," said Firdose Vandrevala, head of Motorola India.