India’s telecoms ministry has reportedly set a deadline of 31 July 2015 to conclude a merger between state-run mobile operators Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL).
The Department of Telecommunications (DoT) said in a…
India’s telecoms ministry has reportedly set a deadline of 31 July 2015 to conclude a merger between state-run mobile operators Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL).
The Department of Telecommunications (DoT) said in a presentation to Prime Minister Narendra Modi that it expects the government to approve the proposed merger by 30 June next year, the Economic Times reported.
BSNL and MTNL have both been struggling in India’s crowded mobile market and, since 2010, several options have been considered to revive them, including a merger and tower sales.
Last September, the wireless operators signed an agreement to share their network assets, which include buildings, towers and international long-distance phone networks.
And earlier this year, the two companies received government approval to sell their unused broadband wireless access spectrum back to the state for Rs110bn (US$1.8bn).
According to the report, the DoT has also set deadlines to complete organisational restructuring plans at both telcos ahead of the merger. These include a cut-off date of 31 December 2014 to spin off BSNL’s mobile towers into a separate, wholly-owned unit and to monetise some of both telcos’ property assets.
The ministry also plans to provide MTNL with some financial support, the report noted.
BSNL, MTNL and the DoT were not immediately available for comment.
