NEW DELHI: After dilly-dallying for years, the government has asked the two telecom PSUs - BSNL and MTNL - to synergise their operations and function as one entity, pending their merger, offering Pan-India services. BSNL provides all telecom services - fixed-line, mobile, STD, ISD, internet etc - in 20 circles other than Delhi
Functioning separately denies BSNL the chance to offer services inIndia 's two most lucrative telecom markets (Delhi
"We have directed them to actually work out a plan to synergise their operations so that even if they are two separate entities they can work out a mode of functioning as a pan-India service provider," he said. BSNL posted a net loss of 1,823 crore on revenues of 32,046 crore in 2009-10. The company had net profit of over 10,000 crore in 2005-06. MTNL, on the other hand, posted net loss of 2,826 crore in 2010-11. For years, there have been various moves to merge the two but they have failed to fructify. "Procedurally, there are many issues like MTNL's shareholding pattern, staffing, salary structure and pension structure in merging them," said Chandrasekhar.
Functioning separately denies BSNL the chance to offer services in
"We have directed them to actually work out a plan to synergise their operations so that even if they are two separate entities they can work out a mode of functioning as a pan-India service provider," he said. BSNL posted a net loss of 1,823 crore on revenues of 32,046 crore in 2009-10. The company had net profit of over 10,000 crore in 2005-06. MTNL, on the other hand, posted net loss of 2,826 crore in 2010-11. For years, there have been various moves to merge the two but they have failed to fructify. "Procedurally, there are many issues like MTNL's shareholding pattern, staffing, salary structure and pension structure in merging them," said Chandrasekhar.
