Merger or not, BSNL, MTNL to synergise

The proposed merger between two state-run telecom giants -- Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited -- might have hit a roadblock, but both the companies plan to synergise their operations across the country.

"We plan to synergise our operations with MTNL, which would enable us to provide customer support through a single platform," BSNL Chairman and Managing Director Kuldeep Goyal told PTI.

He said "discussions with NYSE listed firm MTNL on this issue has already started and we expect the process to be complete in a couple of months."

"We will become one company for both BSNL as well as MTNL's customers after streamlining of operations of both the PSUs," Goyal said.

The customer care centres of one company would be able to help customers of another company and vice versa.

While MTNL operates in the lucrative circles of Mumbai and Delhi and has about 27.72 lakh landline users, BSNL operates in rest of India with over 30 million subscribers.

The Centre had first hinted at a possible merger between BSNL and MTNL in September 2004, but it could not take place.

Since MTNL was a listed entity and BSNL wholly-owned by the government, lots of issues had to be addressed before taking a call on the merger process.

In MTNL, the government holds 56.25 per cent government stake. The company is listed in the domestic market as well as on the New York Stock Exchange. It has private stakeholders who may not favour a merger with BSNL, and hence the proposal was put on hold.