BSNL, MTNL merger is a desirable situation: MTNL CMD
Source :News Bharati English   Date :17-Apr-2017

New Delhi, April 17: Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) are looking forward to working in coalition. Such a combination is desired for a stronger pan-India play to play a stronger role in the competitive telecom market.

Telecom Department has recently planned to place the proposal of merging before the Cabinet by June. This seems BSNL-MTNL merger has got a new push.

MTNL CMD PK Purwar has commented that the merger is a desirable situation. “The industry is consolidating. It is not an issue of BSNL and MTNL...for any operator to succeed in India a pan India operation is a must.” , he said.

Citing the recent spate of mergers in the industry including Airtel-Telenor, RCom- Aircel and Vodafone-Idea Cellular, isPurwar emphasized on pan-India operations.”I think it is the necessity of the market not just requirement of one entity versus another entity.”, he added.

Merger and operational synergies are kind of a natural outcome for realizing the full potential of two different entities. This will also result in a better interface for the consumers.

BSNL CMD Anupam Srivastava also commented that the merger would be “advantageous” for both firms. Whereas he has also pointed out that at first, they need to sort out issues related to debt, salary structure.Purwar is also hopeful about the solution of these problems.  He has reflected his counterpart’s view by commenting that the merged entity should be healthy without any debt.

As per Trai information, BSNL and MTNL had already shared 9% of the total wireless base of 1.12 billion.