UK based Virgin Mobile has been reportedly shortlisted by India's MTNL to take over the management of its 3G network. The Spice Group, the sole other bidder was dropped due to a lack of experience in running a 3G network.

Virgin Mobile is already operating in India though a CDMA network partnership with Tata Teleservices.

Speaking to Business Line, Mr R.S.P Sinha, Chairman and Managing Director, MTNL, said, "We are in discussion with Virgin. They have the necessary experience in offering 3G services in the international market through the franchisee route. Spice did not have the required experience."

MTNL is seeking an outside partner to take over the running of its 3G networks in Delhi and Mumbai after the company reported appalling levels of subscriber uptake.

The tender document blocked any company that is planning to bid for the private 3G licenses, but will offer a revenue share deal to the contractor.

The networks in Delhi and Mumbai are being offered separately, although it is presumed that any winner would be asked to manage both markets. The contracts would be signed for a 10-year period, with a review after three years.