The Indian telecoms ministry has reportedly revived talks about a merger of state-owned telcos Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) in order to turn the struggling companies around.
According to local newspaper The Hindu,…
The Indian telecoms ministry has reportedly revived talks about a merger of state-owned telcos Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) in order to turn the struggling companies around.
According to local newspaper The Hindu, the Department of Telecommunications (DoT) sent a note to a commission of ministers headed by finance minister Palaniappan Chidambaram, saying that a merger between BSNL and MTNL may be considered for strategic and operational synergies.
This group of ministers has recently been set up 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,” according to a document released by India’s cabinet secretariat.
A merger between BSNL and MTNL has been in the pipeline since 2007, because the telcos have struggled to remain competitive in India’s crowded telecoms market.
Several options have been considered to boost their revenues, including the sale of BWA spectrum and of tower operations, and encourage a combination but none of the proposals has so far been followed through.
