The two PSUs have been losing revenues as well as market share.
MTNL has lined up Rs 1500 crore to expand GSM and broadband operations in 2008.
Bharat Sanchar Nigam Limited is unlikely to participate in the tender floated by Mahanagar Telephone Nigam Limited to carry its STD traffic in Delhi and Mumbai even as the NYSE-listed MTNL has agreed to pay some of the STD dues immediately.
State-owned MTNL will soon reap a tax refund windfall, as the Income Tax department has been asked to return a whopping Rs 1,233 crore (Rs 12.33 bilion) to the telecom PSU
MTNL plans to provide 15,000 ultra high-speed broadband connections in Delhi and Mumbai.
MTNL has cut the one-time payment of its lifelong post-paid mobile plan by 50 per cent to Rs 400 from the existing Rs 800.
Telecom PSU MTNL has paid Rs 314 crore (Rs 3.14 billion) to BSNL, which had demanded Rs 1,062 crore (Rs 10.62 billion) for carrying the former's STD traffic.
State run MTNL has taken to the franchise route to sell its 3G services in Delhi and Mumbai and has floated a global Expression of Interest for 3G Services Franchisee.
The state-owned MTNL on Wednesday announced expansion of its GSM cellular capacity by an additional four lakh lines each in Delhi and Mumbai, from the current 2.25 lakh lines each in the two metros.
MTNL landline subscribers will now be able to get a second fixed phone connection free of security, registration and rental costs under a new scheme, which the company hopes would stop users from surrendering their phones.
Ending the long wait over next generation telecom services, MTNL on Friday said it will commercially launch its 3G services in the national capital within 10 days.
Expressing concern over decline in the share of public sector companies BSNL and MTNL in overall telephones during the last five years, the government on Friday asked them to plan for an additional 100-150 million lines over the next three years.
The minister said the reasons for withdrawal of landline connections includes preference for mobile phones, move to private operator, disconnections due to non-payment of dues and surrendering of second telephone taken for get internet connection due to availability of broadband. The total number of landlines in the country as on March 2008 is 39 million, which was 4 crore in March 2007. At present, BSNL has 31 million landline users while MTNL has 3.68 million users.
Sam Pitroda said that the MTNL-BSNL merger is not the only solution and asked the government to give them more autonomy by lowering its stake to below 51 per cent.
A panel said BSNL can claim tax breaks if it merges with a loss-making ITI and suggested BSNL can also merge MTNL with itself.
State-run MTNL on Tuesday launched voice SMS service for its fixed and mobile subscribers in New Delhi with technological support from the US-based value-added services provider Kirusa.
Telecom regulator TRAI has said private GSM operators were acting as a "cartel" against MTNL and BSNL and charging higher tariffs from customers for calls terminating in the networks of the two state-run companies.
BK Modi-promoted Spice Group and British Virgin Mobile have bid for MTNL's franchise deals to offer 3G services in Mumbai and Delhi.
The company has been designated as the official telecom service provider for Commonwealth Games 2010, to be held in Delhi, and it has already received Rs 182 crore (Rs 1.82 billion) from the government for providing infrastructure.
Home minister heads several groups of ministers, including the one to decide the revival package for Bharat Sanchar Nigam and Mahanagar Telephone Nigam. His ministry also takes decisive calls on national security in relation to telecom operations as well as equipment and technology used in the industry.
Scheme likely to come into force by June or July this year; both PSUs have been losing revenues and market share.
The government has been pressing citizens to pay taxes and be compliant, but they have very little to show regarding improved efficiencies in the companies they themselves own, the fund managers said.
State-run telecom firms BSNL and MTNL have to recover a massive Rs 4,469 crore (Rs 44.69 billion) outstanding dues from states, centre, defence establishments and private subscribers, the Rajya Sabha was informed on Thursday.
State-run MTNL has received the highest amount of spectrum in Delhi and Mumbai at 12.4 Mhz as on March 2009, while private GSM operators Bharti and Vodafone are not far behind at 10 Mhz each in the same period.
In the first ever indication of a possible merger of two public sector telecom companies, MTNL and BSNL, the government on Thursday said it was appointing advisors for synergising their operations.
Even as it selected a franchisee to run its 3G telecom services in Delhi and Mumbai circles, state-run MTNL said it was unlikely to be able to implement mobile number portability by the government deadline of December 31, which is supposed to bind all players.
Taking a cue from Videsh Sanchar Nigam Ltd and Bharat Sanchar Nigam Ltd, which had earlier reduced bandwidth prices
State-run MTNL will approach the telecom tribunal TDSAT against the TRAI order that brings new access deficit charge regime from February 1, within two days .
The central government has no plans of divesting stakes in public sector telecom firms - BSNL and MTNL - as the two were performing well in the competitive telecom sector.
Public sector undertakings - MTNL and BSNL have not yet given any time frame for testing of services for interception of Blackberry services notwithstanding the December 31 government deadline for operators to comply with it or shut their services.
DoT is even considering measures to urge private telecom operators to bring down their dependence on Chinese-made telecom equipment.
Telecom public sector undertakings, BSNL and MTNL will start their broadband services across the country from Thursday, providing high-speed connectivity at tariffs ranging from Rs 500 to Rs 43,000.
The government said on Wednesday there will be no unbundling of BSNL and MTNL's fixed line networks for laying of broadband lines by private operators.
The Telecom Disputes Settlement and Appellate Tribunal has given the go-ahead to MTNL for recovering Rs 8.7 crore from Data Access.
The government on Wednesday said it has begun the process of scrutinising the names for appointment of advisors to synergise operations of the telecom PSUs -- BSNL and MTNL.
Telecom Dispute Settlement Appellate Tribunal Monday permitted Bharat Sanchar Nigan Ltd and Videsh Sanchar Nigam Ltd to go for downward revision of tariff of their cellular services without referring the proposals to Trai.
In all, 25 Chairman-cum-Managing Director (CMD) posts, 8 MD posts and 2 Chairman posts are lying vacant, according to a written reply by Minister of State for Heavy Industries and Public Enterprises P Radhakrishnan in the Lok Sabha.
The new chairmen-cum-managing directors of public sector telecom firms BSNL and MTNL will be hired on a contract basis with a fixed term of three years, as per the terms and conditions of their appointment, and they will be eligible for the same salary and perks as the head honchos of schedule-A PSUs.
BSNL, MTNL launch free night calling to win back consumers lost to mobile boom
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