MTNL to introduce WiFi hotspots

Ashu Kumar & Mamuni Das - New Delhi

In order to offset revenue losses due to falling prices of telecom services in a liberalised market, Mahanagar Telephone Nigam (MTNL) is now entering into new services like WiFi (wireless connectivity for computing) and digital signature services to build new revenue streams. The company will be setting up wireless hot spots at places like airports, upmarket restaurants and entertainment plazas in Mumbai and Delhi. The hotspots will work on 802.11b wireless technology, and will enable notebook computers and handheld devices to automatically connect to the communication network when brought in the hotspot area.

MTNL chairman and managing director Narinder Sharma confirmed that the company plans to offer Wi-Fi services in partnership with a technology company.

“We will soon be signing a memorandum of understanding with a technology partner. The project will be executed on a revenue sharing basis,” he said.

Sources said that MTNL will front end the service and provide the communication backbone while the partner will set up the wireless network. The revenue will be shared by both the companies as per a mutual understanding.

This will be the first time in India when a telecom service provider will offer WiFi services.

Microprocessor major Intel, which recently launched its new wirless technology Centrino for notebook computers, had also claimed to be talking to telecom service providers in India to set up hotspots for wireless computing. MTNL will also become a certifying authority for digital signatures so that it can distribute digital signatures to its high-end cellular users. “The idea is to promote mobile commerce in a secured environment. We are almost ready with the technology infrastructure for digital signatures and will apply for a licence to become a certifying authority within 2-3 months,” said Sharma.