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BSNL and MTNL will merge till 2015

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vsnlmtnlMTNL providing the telecom services in Delhi and Mumbai and BSNL rest of country. Now both company will merge till July 2015 as per official source.

“The deadline of June-July 2015 has not been officially commissioned to the organisation but the merger is likely to take place in the time frame,” BSNL Director (consumer mobility) Anupam Shrivastava told PTI.
“Commercially it makes sense for the two companies to merge as it will lower the tax outgo. Currently, BSNL is billing MTNL and vice versa for services for which both are paying taxes. If it becomes one entity, the tax outgo will be less,” Shrivastava said.
He said still has some of issue to resolve before merging the both of the telecom giant. Debt on MTNL books, which is a big concern for BSNL to resolve.

The telecom minister Prasad had also met the senior management of BSNL and MTNL recently to discuss the blueprint for reviving the loss-making PSU telecom companies.

The total debt of the two firms has increased to Rs 21,208 crore at the end of June 2014. The public sector firms are also losing market share. The market share of BSNL has been reduced to 12.3 per cent at the end of May 2014 from 13.27 per cent at end of March 2012 whereas that of MTNL stood at 4.83 per cent at May-end, 2014. In 2012-13, MTNL recorded a net loss of Rs 5,321.12 crore on annual revenue of Rs 3,428.6 crore.