Motorola Wins India’s First UMTS Contract from MTNL
MTNL to deploy wireless platform and provide value added services to its additional two million users
NEW DELHI, India - 18 January 2007 - Motorola Inc. (NYSE:MOT) today announced an agreement with Mahanagar Telephone Nigam Limited (MTNL), for the supply of a Universal Mobile Telecommunications Service (UMTS) cellular network for Delhi and the National Capital Region (NCR). Under the agreement, which includes network deployment and maintenance services, MTNL will be expanding its GSM network by 2 million lines. As the first UMTS rollout in India, the UMTS network deployment will take place after the relevant regulatory authority of India has authorized spectrum allocation and appropriate licenses 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.
“Motorola has always been a front-runner in providing cutting edge technological solutions and services to India’s telecommunications industry,” said Firdose Vandrevala, head of Motorola India. “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.”
Motorola’s innovative UMTS solutions 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.
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About Mahanagar Telephone Nigam Limited (MTNL)
MTNL was set up on 1st April, 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India’s key metros - Delhi, the political capital and Mumbai, the business capital of India. In the past 20 years, the company has taken rapid strides to emerge as India’s leading and one of Asia’s largest telecom operating companies. MTNL is a Govt. of India’s “Navratna “ public sector undertaking and is listed at New York Stock Exchange. The Govt. of India currently holds 56.25% stake in the company. Besides having a strong financial base, MTNL has achieved a customer base of 5.92 million as on 31st March 2006.
The company has also been in the forefront of technology induction by converting 100% of its telephone exchange network into the state-of-the-art digital mode.
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