A merger of Indian state owned telcos Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) appears to be back on the agenda according to an article in the Indian Express.
The paper reported today on its website that the Department of…
A merger of Indian state owned telcos Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) appears to be back on the agenda according to an article in the Indian Express.
The paper reported today on its website that the Department of Telecommunications (DoT) has asked the two companies to provide it with a “work plan” within the next three months for a merger of the two players.
The article refers to an unnamed senior DoT official, who is quoted saying that merging the players would make sense, but it would be complicated, among other things because of the different company structure of the two telcos, with only MTNL currently being listed.
Advisers on a merger would be hired only after the companies have submitted their merger proposal, the official reportedly said.
BSNL and MTNL have both been loss making in the last financial year, following a decline in market share and subscriber numbers. According to recent local media reports, BSNL considers options for its tower operations.
A merger of BSNL and MTNL had been mulled by the companies and government previously. In April of last year, a bigger merger had also been under consideration, including BSNL, MTNL and equipment maker ITI. None of the earlier proposals was followed-through, though.
