MTNL to give up 4G for free spectrum

To offer Wi-Fi services over unlicensed spectrum

State-owned MTNL, which is looking to return its 4G spectrum to the government,  is now eyeing free spectrum to offer high-speed data services.

The operator which offers services in Delhi and Mumbai, will offer indoor wi-fi services with speeds which can go upto eight mbps. MTNL's target is to gain as many as 200,000 new broadband customers with this services, in the next nine months.

This could result in as much as Rs 100 crore revenues per annum, from Mumbai circle. The service is expected to go live in the next three months.

"We are already in talks with restaurants and malls to offer indoor wi-fi services, " said Peeyush Agarwal, executive director of MTNL. The company already has 600,000 broadband users.

MTNL claims that the costs of offering this services are lower. It will harness the free and unlicenced spectrum offered by the government. Yet another telecom player Tikona Wireless also uses the spectrum to offer its data services. Government-owned C-DOT will offer MTNL, the necessary technological service, helping them launch the service.

"We have a lot of Copper installed already. All we have to do is set up a modem," said Agarwal. He hopes to model the service, to Tata Communications' wi-fi offerings at coffee chain, Starbucks. They are in talks with Cafe Coffee Day, and other Food Courts, for the service. "We are already in talks with 40 major corporates," he said.

MTNL has also signed a proof-of-concept with Brihanmumbai Municipal Corporation (BMC), to offer their wi-fi services. The service is also open to household customers, who will have to purchase a special modem for Rs 6,000 apiece. The cost could come down as they expand.

The state-owned company will release as much as Rs 4,500 crore in cash as they return the broadband wireless access (BWA) or 4G spectrum. They plan to use this cash to repay their debt.