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Indian telcos MTNL, BSNL target operations synergies via MoU

BSNL recently soft-launched 200 4G network sites in the Punjab region

Indian state-run telecom operators Mahanagar Telephone Nigam Limited (MTNL) and Bharat Sanchar Nigam Limited (BSNL) have signed a Memorandum of Understanding (MoU) that will pave the way for the synergy of operations between the two companies, according to local press reports.

In a regulatory filing, MTNL said that the agreement was signed on August 31. “The MoU with BSNL will pave the way for synergy of operations between MTNL and BSNL in order to provide pan India telecom services as a public sector enterprise under the government of India,” MTNL said.

BSNL is already running MTNL’s mobile services.

In June, local news site Livemint reported that the Indian government is studying the possibility of shutting down state-run telco MTNL and transfer its assets and staff to BSNL. The move comes as MTNL struggles with a deteriorating financial scenario including increasing debts and persistent losses.

MTNL provides services in the cities of Mumbai and New Delhi. The telco had a monopoly in these two cities until 1992, when the telecom sector was opened to other service providers.

The government of India has earmarked a total of INR890 billion ($10.8 billion) for the allotment of spectrum for BSNL to launch nationwide 4G and 5G services, according to recent press reports. Through this move, the state-owned telco will obtain spectrum in the 700 MHz, 2.5 GHz, 3.3 GHz and 26 GHz bands.

A government statement said that with this spectrum allotment, BSNL will be able to provide pan-India 4G and 5G service, provide 4G coverage in rural regions under various connectivity projects, provide fixed wireless access (FWA) service and offer services or spectrum for private networks.

BSNL soft-launched 200 4G network sites in the Punjab region. The deployment of these 4G network sites is a part of an extended field trial following a proof of concept (PoC) by Tata Consultancy Services (TCS)-led consortium.

BSNL aims to initially provide 4G services in high-revenue telecom circles in India. Currently, Kerala, Maharashtra, Tamil Nadu, Karnataka and Punjab are among the high-revenue-earning circles for the state-owned carrier. According to previous reports, BSNL expects to cover all telecom circles in India with its 4G services by the end of its upcoming financial year, which ends in March 2024.

The country’s Minister of Railways, Communications and Electronics and Information Technology Ashwini Vaishnaw, had said that BSNL could launch 5G technology by end-2023. Vaishnaw also clarified that initially, BSNL’s 5G network will be based on the NonStandalone (NSA) architecture.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.