KOLKATA: State-run MTNL, which operates mobile and land-line services in Mumbai and Delhi, is diversifying into the managed services space in international markets. For starters, it is about to ink multi-year managed services deals with mobile phone companies in key African markets like Zambia, Zimbabwe, Cameroon, Djibouti and Mozambique, a top company executive told ET. 

MTNL will handle network management, up-gradation, planning and maintenance for GSM technology service operators in Africa and will also be responsible for the upkeep of key performance indicators and service level agreements. It will also advice African operator clients on vendor selection to get the best deals. 

The projects will be executed by MTNL's Mauritius arm, Mahanagar Telephone Mauritius Ltd (MTML). The parent company is about to relocate 100 top engineers and consultants from Mumbai and Delhi to Mauritius to anchor these managed services deals in Africa. 

The official did not disclose the size of the managed service contracts but said a multi-year deal in these African markets was likely to be bench-marked at roughly $20 million (Rs 100 crore) a year. 

The MTNL leadership was recently in Mauritius to finalize the telco's African odyssey. The Africa gameplan will be orchestrated by the telco's director (technical) Kuldeep Singh. "The MTNL board has taken a decision to dedicate people resources to enter the lucrative managed services space in key African markets. We are in talks with some of the biggest telcos in Zambia, Zimbabwe, Cameroon and Djibouti to offer managed services," said another MTNL executive who declined to named these companies. 

MTNL itself does not plan to launch GSM services in Africa since losses have mounted and it is in no position to invest in excess of $100 million in greenfield network roll-outs as envisaged earlier. "We don't have money to roll out greenfield networks in Africa. The decision to get into managed services is aimed at prising open new revenue streams since MTNL has the necessary engineering resources to manage international mobile networks," said a company executive. 

This will be MTNL's second attempt to enter Africa. Back in 2006, the telco failed to bag a mobile permit in Kenya and a year later it lost out in its attempts to buy a controlling stake in Telkom Kenya. At present, the telco operates mobile services on the GSM and CDMA platforms in Mauritius and will launch 3G services in the island by November.