From the past few years, we came to know that MTNL and BSNL companies are merging together. However, these were rumors till now but the idea of the proposal to merge both the companies is back on the discussion table. According to various reports, some of the top officials and the Telecom Department Officers are ready to bring the idea of merging the two companies on the field.
Also, a top-level meeting recently proposed the idea of merging both the entities because of the financial stress due to increasing competition in the sector. The reports are given by a highly-placed source in the Telecom Department. Another official report states that in Phase 1, BSNL is picking up mobile operations of MTNL in Gurgaon, Noida, and Faridabad (NCR Region) where it is already offering landline and broadband services.
In Phase 2, the other option could be the acquisition of MTNL’s mobile operations in the two main metro cities, Delhi and Mumbai. But, a former DoT (Department of Telecommunications) secretary J S Deepak told the parliamentary standing committee on Information Technology, that,
“We are working on a plan… I would not say that we have a plan of merging these companies in phases. “The experience of Air India and Indian Airlines, which you have pointed out, is something before us, which is not a happy experience, but we realized that there would be some synergy in the merger. On the merger plan and timeline, We may have to do it in stages and we are working to develop a plan. I would want to take it to (the) Cabinet before the end of June, and as you have directed, as soon as it is ready, we will share it with this committee.”
Last week, the parliamentary committee discussed in Lok Sabha in written that we should give a chance to both the entities for competition against the emerging consolidated private sector players. The idea of merging the two entities are very first proposed by the Telecom Minister, Pramod Mahajan.