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Its not over for MTNL, BSNL

J. V. Ramamurthy

BSNL can play a key role in the next wave of rural telecom penetration.

If British Telecom could be turned around by hiving off its operations into separate entities, the same can be achieved withBSNL and MTNL.

May 23, 2013:

Revitalising the two state-run telecom behemoths, Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar TelephoneNigam Ltd (MTNL), has become a priority for the government, with both firms posting losses for six consecutive years.

As per unaudited figures, BSNL posted a loss of Rs 8,198 crore in 2012-13, while MTNL recorded a loss of Rs 3,300crore.

The Group of Ministers (GoM) concerned is expected to meet to discuss a trifurcation of the firms. However, whatsrequired is a streamlining of operations and greater independence.

Lets not forget that both telcos operated as the dominant service providers before the entry of private players, whochanged the game through aggressive pricing and promotional strategies.

Both, MTNL and BSNL are plagued by declining revenues coupled with high costs, which makes restructuring anabsolute necessity.

Page 1 of 4Its not over for MTNL, BSNL | Business Line

5/24/2013http://www.thehindubusinessline.com/opinion/columns/its-not-over-for-mtnl-bsnl/article4743328.ece?css=print

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