Motorola has reportedly bagged a contract from government-controlled Mahanagar Telephone Nigam Limited (MTNL) to build a third-genreration (3G) cellular network in Delhi and the National Capital Region (NCR).

According to reports, MTNL is expanding its GSM network by 2 million lines, and this agreement covers network deployment and maintenance services for Universal Mobile Telecommunications Service (UMTS), a type of 3G mobile network.

As the first UMTS rollout in India, the UMTS network deployment will take place after the relevant regulatory authority of India has authorized spectrum allocation, and appropriate licenses are obtained by the network operators.

It is also learnt that MTNL has ordered UMTS equipment for validation and plans to place further orders subject to allocation of frequency spectrum. And once UMTS equipment is in place, value added services will be deployed to enable MTNL gain new revenue streams.

Making this announcement, Firdose Vandrevala, Head, Motorola India, said, "Motorola has always been a front-runner in providing cutting edge technological solutions and services to India's telecommunications industry. This collaboration with MTNL demonstrates Motorola's commitment to build the best-in-class wireless network that will be the backbone for superior wireless services in India."

Motorola's innovative UMTS solutions will enable MTNL to deploy wireless platforms that will address issues such as achieving a low cost-per-subscriber ratio, and maintaining consistent service quality, within high-growth markets.

Meanwhile, the network will be deployed in two phases, each covering approximately one million subscribers. And, a portion of the deal is subject to 365-day payment terms.