BSNL and MTNL to be merged by July 2015

In its presentation to Prime Minister Narendra Modi, the Department of Telecommunications(DoT), Ministry of Communications and Information Technology, has set a cutoff date: July 31, 2015, for closing the much debated merger of stressed state-run telecom companies, BSNL (Bharat Sanchar Nigam Ltd) and MTNL (Mahanagar Telephone Nigam Ltd).

MTNL runs telecom services in Delhi and Mumbai while BSNL offers telecom coverage in the rest of India.

Bharat Sanchar Nigam Limited (BSNL) incorporated on September 15, 2000, is an Indian state-owned telecommunications company headquartered in New Delhi, India. In India, BSNL is the largest supplier of Fixed Telephony and 4th largest Mobile Telephony supplier, and is also a supplier of broadband services. BSNL is India’s oldest and largest Communication Service Provider (CSP). Till January 2014, BSNL had a customer base of 117 million.

Mahanagar Telephone Nigam Limited (MTNL) set by Govt of India on April 1, 1986is a state-owned telecommunications service provider in the metro cities of Mumbai and New Delhi in India and in the island nation of Mauritius in Africa via its subsidiary Mahanagar Telephone Mauritius Limited (MTML). At present, The Government of India holds 100% stake in the MTNL.

Mahanagar Telephone Mauritius Limited (MTML) in Mauritius is a wholly owned subsidiary of MTNL. It proves mobile and international long distance services. MTML is the 2nd operator in Mauritius. In January 2004, MTML obtained necessary licenses to operate in Mauritius.

In current years BSNL’s and MTNL’s revenue and market share have jumped into substantial losses because of extreme competition in the Indian telecommunications sector. Government is attempting to revitalize the two financially stressed telcos, which continue to roll under heavy losses. MTNL posted a Rs 733.2 crore net loss in the Q1 2014, while BSNL suffered a Rs 7,085 crore loss in 2013-14.

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