Two public sector telecom giants, BSNL & MTNL planning to come together

Posted By: Religare
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Two public sector telecom giants
Within few days of his appointment as the CMD of BSNL, Mr. RK Upadhyay revealed the plans of streamlining the activities of BSNL and MTNL. The process is being undertaken considering the benefits for both the organizations besides the Trai norms.

"Synergies are being worked out and we would not wait for the whole lot of list to be worked out. As things come in our mind we will look at it (services). We will see that it will benefit both organisations without violating any Trai norms and over and above they must benefit customers," BSNL CMD RK Upadhyay said.

“The first consideration would be benefit to our customers. Second consideration in that order of priority would be that it should be mutually beneficial to both the organisations and at the same time to top it all it should be within permissible norms. These points will be definitely handled at very fast pace," Upadhyay added.

Earlier in March this year, both the organizations had called for a meeting to discuss the options given by ICICI Securities, the consultant appointed by the Government to look into this possible synergy. MTNL had opposed the option of becoming a subsidiary then. On the same lines, the Board for Reconstruction of Public Sector Enterprises had recently recommended the merger of BSNL and MTNL which would help the turnaround of both these loss making organizations.

All this synergy is focused towards cost reduction and providing PAN India services for both the loss making telecom PSU"s. BSNL had reported a net loss of Rs 1,823 crore in 2009-10 while MTNL"s loss amounted to Rs 2,826 crore in 2010-11.

Read more about: telecom, mtnl, bse, nse
Story first published: Friday, May 20, 2011, 9:31 [IST]
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