MTNL, BSNL partner up to bolster operations

MTNL, BSNL partner up to bolster operations

State-owned Indian operators Mahanagar Telephone Nigam Limited (MTNL) and Bharat Sanchar Nigam Limited (BSNL) have signed an MoU to synergies their operations and provide pan-Indian telecom services, reported Economic Times (ET).

BSNL announced the partnership in a regulatory filing last week (August 31). ET reported BSNL had been struggling and required a bailout from the government in 2019 followed by a second recovery package in 2022 which was included in a revival plan for the struggling state-operator.

The plan also includes the proposed merger of state-backed wholesale infrastructure provider Bharat Broadband Network Limited (BBNL) with BSNL. Other plans include the merger of MTNL and BSNL, but this was delayed due to the former’s debt.

BSNL had taken over the operation and management of MTNL mobile networks in Delhi and Mumbai, showing their businesses are indeed combining. The government also considered shutting down MTNL and merging its operations into BSNL, rather than enacting a merger.

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