MTNL, the state-run telecom operator, said that it has narrowed its net loss to Rs 730.44 crore for the second quarter ended September 30, against a net loss of Rs 834.22 crore in the same period a year ago.
The telco, which offers telecom services in Delhi and Mumbai, posted a decline of 7.46 percent in net revenue from operations at Rs 787.21 crore during the quarter, as compared to Rs 850.72 crore last year.
The telco has also closed down its CDMA business in Delhi and it has not carried any impairment test on value of the fixed assets till the end of reported quarter. It has surrendered part of its CDMA spectrum holding which was used by government in auctions that concluded in March, according to media reports.
MTNL however did not make any provision for the amount in liability as spectrum charge demand is sub-judice. "Due to recurring losses incurred by the company and uncertainty in the achievement of projections made by the company, we were unable to comment on the provisions, if any, required in respect of impairment of carrying value of the fixed assets and its consequential impact on loss for the quarter," MTNL said.
The telecom department (DoT) has issued revised demand notice as one-time spectrum charges for its excess spectrum holding for both GSM and CDMA services amounting to Rs 3,205.71 crore compared with Rs 3,315.15 crore.
The department of telecommunications (DoT) is considering a new holding company with BSNL and MTNL as its subsidiaries to revive both the ailing public sector undertaking companies, by synergising their operations, Business Standard reported last week.