Bharat Sanchar Nigam Limited (BSNL) has reportedly taken over Mahanagar Telephone Nigam Limited’s (MTNL) telecom operations in Mumbai and Delhi. MTNL is a state-owned telecommunications service provider and is a subsidiary of BSNL. According to The Economic Times, the Central government-owned telco took over MTNL’s mobile network operations in the two cities on January 1, 2021. It will run MTNL’s mobile network as its outsourced agency. The fourth-largest telecom service provider is also likely to introduce 4G network in the two metro cities. Let’s take a look at more details on BSNL taking over MTNL’s operations in Delhi and Mumbai.
BSNL takes over MTNL’s Delhi and Mumbai mobile network operations
State-run BSNL has reportedly started operating two of MTNL’s metro operations. According to the report, it will take over MTNL’s Mumbai and Delhi operations. The development comes after BSNL’s proposal to the telecom department sent on October 27, 2020. The government-owned telco had expressed interest to manage networks in the two circles on an outsourcing basis.
“As proposed by BSNL earlier vide its letter dated October 27, 2020, and agreed by MTNL, BSNL will run the mobile network of MTNL as its outsourced agency from January 1, 2020. The necessary formalities in this regard may please be completed accordingly,” the Department of Telecommunications (DoT) letter read.
The report further states that the circular was issued in a meeting headed by DoT’s additional secretary Anita Pravin with the CEOs of the two telcos on December 15. The DoT granted a unified license on December 16 to BSNL. This made the telco eligible to offer mobile and fixed-line services in Delhi and Mumbai.
The telco has taken over MTNL’s operations in Delhi, and adjoining areas of NCR, including Gurugram, Noida, Faridabad, Ghaziabad. It has also taken over the subsidiary’s Mumbai operations for Kalyan and Navi Mumbai.
The report further added that the telco could introduce 4G services in the two metropolitan cities. However, the country’s fourth-largest telecom operator is yet to issue Notice Inviting Tenders (NIT) for equipment procurement for 7,000 sites in Mumbai and Delhi.
BSNL and MTNL are currently struggling to compete against the likes of Reliance Jio, Airtel, and Vodafone Idea (Vi). The two state-run operators have a market share of 10.75 percent in India.