The Mumbai Metro Rail Corporation Ltd (MMRCL) has encountered a significant setback as its tender for telecom infrastructure on the underground Metro 3 Aqua Line failed to attract any bids. The contract, aimed at ensuring seamless mobile connectivity within tunnels and stations, remains unresolved.
No Bidders for Neutral IBS Provider
The request for proposal, issued on March 13, 2023, sought to appoint a neutral in-building solution (IBS) provider for the 33.5-kilometer fully underground corridor, which includes 26 underground stations and one at-grade station. Despite the project's scale, no bids were submitted.
MMRCL has stated that due to severe space constraints, only one telecom infrastructure provider can be accommodated, which would serve as a neutral host for all telecom operators. An MMRCL official said, "We will now write to the state government explaining the entire sequence of events and subsequently approach the central government to seek guidance on the way forward."
Telecom Operators Oppose Pricing Structure
The lack of bidder interest stems from strong opposition by telecom operators to MMRCL's pricing and tender structure. In a joint communication to managing director Ashwini Bhide, Reliance Jio, Bharti Airtel, and Vodafone Idea flagged the reserve price of around Rs 1,000 per square foot—even for non-usable areas—as "exorbitant" and not aligned with just compensation principles. They warned that this could delay service rollout.
The operators also indicated that no telecom company would issue comfort letters to any IBS vendor under the current terms, effectively discouraging participation unless the pricing framework is rationalized. This followed MMRCL's decision to terminate its earlier IBS contract with ACES and issue a fresh tender.
Proposed Shared Network Model
Telecom firms offered to acquire the already installed ACES infrastructure instead of rebuilding networks, aiming to avoid duplication of costs and speed up deployment. They backed a shared network model, with Reliance Jio also seeking right-of-way permissions to roll out common telecom infrastructure—a proposal supported by other operators.
However, MMRCL has maintained that it cannot grant selective access to any one operator and that the project must proceed through a competitive bidding route with a single neutral provider. The issue remains unresolved for now.
