Spice and Virgin Mobile are the two firms which bid for MTNL’s tender to select franchisees for its 3G services.

The tender was floated in July and the tie-up will be on a revenue-sharing basis.

MTNL’s 3G service foray is not attracting consumer interest to an extent which the operator would have expected. The decision to adopt the franchisee mode was mainly with an aim to pass on the marketing and sales responsibilities on the partner. The franchisee will also be given a target to achieve within a time frame.