MTNL, private telcos to share towers

Posted By: Religare
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MTNL, private telcos to share towers
Following BSNL's step to transfer its tower business to a separate subsidiary, MTNL has announced that it intends to lease out its passive infrastructure with private service providers.The move is a conscious effort on the company's part to increase revenue, having reported a loss of INR 28 billion for the FY 2010-11.

MTNL, that operates in Mumbai and Delhi only, has 1400 towers as compared to BSNL's 40,000 who is planning on sharing its towers with private firms. MTNL plans to add another 700 towers in FY 2011-12. Recently, MTNL had invited EoI (Expression of Interest) for sharing the use of BTS (Base Tranciever Stations) in Delhi and plans to do the same for Mumbai.

The company, that has most of its BTS at its exchange sites, had earlier shared some of the infrastructure with private sector firms as part of an experiment following the success of which, the decision to lease out its towers has been taken.

Our take: This is an excellent step in the direction of turning around of the company.

Over the years, the company has taken certain excellent decisions on handling of union and making the pay in line with the contribution to grow its business. The company's task is now to provide the improved user experience.

With the initiation of sharing its infrastructure the company will find a new set of clients. 

Read more about: mtnl, telecom, bse
Story first published: Monday, June 13, 2011, 10:30 [IST]
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