India’s state-owned operator MTNL has confirmed earlier reports this week that it is searching for an international partner-operator to sell its 3G services under a franchise deal, reports Dow Jones Newswires. According to tender documents on MTNL’s website, the operator is looking to secure a ten-year revenue share agreement that will be reviewed in three years. MTNL said that candidate companies must have experience in providing similar services to 1 million 3G customers across at least two countries, and have had a turnover of at least US$300 million over the last two years. “The 3G franchisee should not be a licensed telecom service provider in Delhi or Mumbai and [should] undertake not to take such licenses in Delhi or Mumbai during the period of the contract with MTNL,” the operator added. Financial terms were not disclosed.

As a state-owned entity, MTNL has been allocated 3G spectrum ahead of the delayed private auction for Indian 3G spectrum scheduled for later this year. The report notes that the operator introduced 3G services in Delhi in December 2008 and in Mumbai in May and had 400 subscribers on the networks at the beginning of June. According to the document, the franchise partner will need to deliver INR300 million (US$6.1 million) in revenue from 3G services in the first year in each of the two telecom service areas (Delhi and Mumbai). These targets will rise to INR1.2 billion in year two and INR2.4 billion in year three, MTNL said. According to an earlier report in the Times of India, MTNL has already approached several big names, including Verizon, Orange, BT, AT&T and Cable & Wireless, over a possible partnership. It is also believed to be interested in talking to Deutsche Telekom (T-Mobile), Telstra and Hutchison.