In a bid to create an equally owned joint venture for delivering citizens’ services, Mahanagar Telephone Nigam (MTNL) is planning to sell a 50% stake in wholly-owned unit Millennium Telecom (MTL) to Bharat Sanchar Nigam (BSNL) to create an equally owned joint venture for delivering citizens’ services.
The proposal is aimed at unlocking cost-efficiencies since Millennium Telecom will have a negligible licence fee payout obligation to the government as it’s not a licensed telecom operator.
Moreover, MTNL’s plan to jointly pitch for the Digital India services mandate with BSNL comes ahead of the July 31, 2015, cut-off date that the Department of Telecommunications (DoT) has set for merging the two struggling state-run telecom companies in a bid to revive them.
MTNL was set up by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India's key metros -- Delhi and Mumbai.
| Company Name | CMP |
|---|---|
| Bharti Airtel | 1852.60 |
| Vodafone Idea | 9.48 |
| Indus Towers | 404.95 |
| Tata Communications | 1512.50 |
| Bharti Hexacom Ltd. | 1533.00 |
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