Indian state-owned mobile operators Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) have signed an agreement to share their network assets, as the companies have been hit by strong competition.
The telcos will pool infrastructure –…
Indian state-owned mobile operators Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) have signed an agreement to share their network assets, as the companies have been hit by strong competition.
The telcos will pool infrastructure – including buildings, towers and international long-distance phone networks – and will together offer services to corporate customers, according to a joint statement cited by Reuters.
BSNL, which operates across most of India, and MTNL, which focuses mainly on Delhi and Mumbai, were not immediately available for comment.
In May this year, the telecoms ministry reportedly revived talks about a merger between the two companies and a group of ministers was set up shortly after to specifically “consider and recommend measures that could be taken in the short, medium and long term for revival and revitalisation of BSNL and MTNL”.
A merger between BSNL and MTNL, respectively number five and number 10 in the mobile market, has been in the pipeline since 2007 because the telcos have struggled to remain competitive in India’s crowded telecoms market.
Several options were previously considered to boost their revenues, including the sale of BWA spectrum and of tower operations.
