Bharat Sanchar Nigam Limited (BSNL) will soon start operating the mobile operations of Mahanagar Telephone Nigam Limited (MTNL) in Mumbai. Officially, BSNL will take over MTNL’s mobile operations in Mumbai from September 1, 2021. The report comes directly from the Times of India (TOI) and suggests that the heavy market competition and depleting number of customers on top of the underutilised infrastructure, including wire networks and cell towers, had hindered the growth of MTNL in Mumbai. This might not be confusing for many since a merger between the companies was meant to happen.
What Will BSNL Do In Mumbai Now?
As per the publication’s report, BSNL’s work will primarily focus on expanding the current 4G mobile infrastructure of MTNL and also come out with aggressive marketing strategies and introduce clever tariffs as it does throughout India.
In terms of numbers, MTNL only has 5 lakh mobile connections and 15 lakh landline connections in the Mumbai circle. It is worth noting that BSNL was already working as an outsourced agency for maintaining the mobile networks of MTNL.
Now, as per the agreement between the companies, BSNL will further direct its staff to work and improve the future operation of MTNL in Mumbai. As for the expenditures that will be incurred, including spectrum charges, license fees, electricity bills, and more, will be shared through a common pool.
This should be a good thing for both MTNL and BSNL. MTNL has largely been unsuccessful in marketing itself as a first choice operator for users living in Mumbai and Delhi. BSNL taking over the telco’s mobile operations would mean that MTNL’s plans might be marketed in a more aggressive manner now. As per the copy of the letter that was obtained by the publication, every liability and asset of the company will be of MTNL, and BSNL won’t have any say over there.