India’s National Telecom backbone Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) signed a Memorandum of Understanding (MoU) to share their infrastructure and provide Pan India joint services to corporate and retail customers across all circles.
Presently BSNL and MTNL facing intense competition from leading pan-India private operators like Bharti Airtel, Reliance and Tata, both state-run telecom operator have seen their market share eroding, and lost money in the past four fiscal years and unable to offer some product and services on Pan-India basis like Unlimited STD calls to each others network (between MTNL and BSNL) across India.
With this pact, BSNL and MTNL will share assets like buildings, Mobile Masts and International long-distance Phone Networks which will take care of their mobile communications (GSM, 3G and CDMA), infrastructure sharing and enterprise business for information technology and telecom services.
BSNL operates mobile (GSM, 3G and CDMA), Fixed-line and Broadband – Internet services in 20 of India’s 22 telecom circls, while MTNL operates in the key metro Delhi and Mumbai circles.
With this MoU, there will be greater synergy between the BSNL and MTNL on operational issues, commercial issues, customer delivery, IT integration, infrastructure sharing and business promotion.
Mr. A.K. Garg, Chairman and Managing Director, MTNL, said “We will be signing service level agreement and are committed to provide the agreed service delivery and service assurance. An enterprise vertical on the similar pattern of BSNL has been also created in MTNL on the philosophy of customer segmentation. This will help us to design and provide customised services as per their need.”
Mr. R.K. Upadhayay, Chairman and Managing Director, BSNL, said “We are going to provide cost-effective solutions for their pan India requirements. We are going to share the resources of each other, which will ultimately bring down the cost of operations.”
BSNL and MTNL jointly announced that both the companies are fully committed to provide pan-India services at most economical rates in a transparent manner.