The Hindu Business Line : BSNL `boots' in private sector for rural wireless network

IN a first of its kind project, Bharat Sanchar Nigam Ltd has invited bids from private players to roll out wireless rural telecom network on a Build, Own, Operate and Transfer (BOOT) model.

The successful bidder will function as a BSNL franchisee on a revenue share basis. BSNL has, however, ruled out partnering any company that has a licence to offer telecom services.

Initially, the project will be implemented in Tamil Nadu Circle and depending on its success, BSNL may consider implementing the new model in other parts of the country. This is the first time any telecom operator has considered the BOOT model, which is quite common in other infrastructure projects such as roads and ports.

The franchisee company will bring the technology, provide the capital expenditure for the equipment, install and commission them and provide direct support for operations, maintenance and customer care. The franchisee would also assume the role of content aggregator and arrange for the content for the set of broadcast TV signals and Video on Demand. BSNL will be to provide the necessary wireless spectrum, co-location space for the equipment, power and air conditioning, bandwidth and bill collection.

The agreement is fixed at 10 years. At the end of 10 years, the franchisee shall not be entitled to any revenue share and all assets in the infrastructure segment shall be transferred to BSNL at zero cost.

The assets that have not completed the 10-year life and associated resources shall be valuated through a third party valuator. The content- related businesses would, however, continue with the franchisee under a revised agreement, which will be drawn up in advance before the exit time. BSNL will provide high-speed Internet access, ISP-related services such as VoIP services, broadcast TV, video on demand and interactive gaming

The franchisee will also be given a roll-out obligation. For instance, in Tamil Nadu, the franchisee will have to cover at least ten districts in the first year and the remaining allotted districts within two years of signing of the agreement.

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