MTNL rings 8% louder on CDMA biz closure buzz

Mahanagar Telephone Nigam Ltd (MTNL) is trading higher 8% at Rs 34.90 on reports that the state-run telecom company is in the process of appointing a consultant for formulating the future plan of action for its CDMA business. The plan may include closing down its operations in the segment.

“The company would take decision only after a consultant report on whether it should go for an upgrade of its CDMA network or must close the segment completely after it shifts users to the GSM segment. It has about 150,000 users on its CDMA platform,” the report suggests.

The company has already decided not to make any fresh investment in the CDMA segment as there is “no growth”, added report.

The MTNL counter also seen huge volumes with a combined 13.34 million shares have already changed hands on the counter till 1137 hours, against an average around 11.27 million shares that were traded daily in past ten trading days on the NSE and BSE.