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Thomas K. Thomas

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New Delhi Jan. 29 After being the first telecom operator to launch Internet Protocol Television (IPTV) services in the country, State-owned Mahanagar Telephone Nigam Ltd could be the first off the block in offering third generation (3G) mobile services. The company has already placed an order with Motorola for supplying equipment for 3G services and is set to begin commercial services within a month of getting the spectrum.

Speaking to Business Line, Mr R.S.P. Sinha, Chairman and Managing Director of MTNL, said, "We are awaiting the spectrum allocation after which we will take a maximum of two months to start 3G services." MTNL will, of course, have to bid for the 3G licence, if the Government decides to auction the spectrum. The Department of Telecom has said that the 3G policy would be announced by March, after which the spectrum would be allocated by May.

Mr Sinha said that MTNL would be focusing on expanding its broadband and IPTV network this year.

MTNL reported a 90.5 per cent growth in its net profits for the third quarter ended December 2006 compared to the same period in the previous year.

"Increase in traffic between Delhi and Mumbai due to reduction in STD rates, reduction in the churn rate of fixed line subscribers, huge addition in mobile subscriber base and decrease in the salary outgo has contributed to the company's performance. Whatever steps we have taken over that past two years is now bearing results," Mr Sinha said. Over 5,000 employees have taken voluntary retirement, which has reduced the expenses for the company.

MTNL is also looking to expand its services beyond national boundaries. "We have already begun operations in Mauritius and are on the look out for more such opportunities in other countries," said Mr Sinha.

He added that the company was not interested any more to expand its services beyond Delhi and Mumbai within India. MTNL had earlier applied for a pan-India service, which was rejected by the Government.

Related Stories:
MTNL's Net protocol TV service cleared
MTNL all set to launch IPTV in Delhi, Mumbai

More Stories on : Telecommunications | Telecommunications | Outlook | Mahanagar Telephone Nigam Ltd

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