BSNL, MTNL synergy as per Trai norms: Upadhyay

Taking their talks forward with MTNL, state-run BSNL today said both the organisations are working together to streamline their businesses keeping in mind the benefits for both the organisations besides the Trai norms.

"Synergies are being worked out and we would not wait for the whole lot of list to be worked out. As things come in our mind we will look at it (services).

"We will see that it will benefit both organisations without violating any Trai norms and over and above they must benefit customers," BSNL CMD RK Upadhyay said.

This comes on the heels of the government giving directions to both the loss making PSUs to take constructive steps to synergise their energies to reduce cost and to provide Pan India services.

MTNL provides telecom services in Mumbai and New Delhi, while BSNL offers similar services in rest of the country's 20 service areas.

Earlier, MTNL had said it is in talks with the BSNL to streamline its business, including telecommunications, enterprise and customer care to cut costs.

"The first consideration would be benefit to our customers. Second consideration in that order of priority would be that it should be mutually beneficial to both the organisations and at the same time to top it all it should be within permissible norms. These points will be definitely handled at very fast pace," Upadhyay added.

Recently, the Board for Reconstruction of Public Sector Enterprises (BRPSE) had recommended that BSNL should merge with its counterpart MTNL -- a move that will help turnaround the loss-making telecom giant.

BSNL, once the country's flagship telecom company, posted a net loss of Rs 1,823 crore on revenue of Rs 32,046 crore in 2009-2010. The company had net profit of over Rs 10,000 crore in 2005-06.

Last week, the telecom major MTNL had reported a net loss of Rs 2,826 crore during 2010-11 fiscal, up 8.27% from Rs 2,610.9 crore in the same period of previous fiscal.

Total income rose to Rs 3,841.2 crore as against Rs 3,781 during the period under consideration.