MTNL, BSNL join hands to offer services

The two state-owned telecom services providers - Mahanagar Telephone Nigam (MTNL) and Bharat Sanchar Nigam (BSNL) - have formed a strategic alliance to jointly offer enterprise solutions to corporates.

This will result in the emergence of a single largest telecom entity offering voice and data services to its customers across the country. A memorandum of understanding (MoU) between the two will be signed this week.

The Tata group has also formed a similar alliance under the Tata Indicom Enterprise Business Unit, offering telecom services under one roof.

The five promoters, Tata Power, Tata Net, Videsh Sanchar Nigam, Tata Teleservices Ltd and Tata Teleservices (Maharashtra), offer their services through a single window.

The strategic alliance between the two state-owned companies is likely to be a precursor to their merger.

However, RL Dube, executive director, MTNL, Mumbai, categorically pointed out that this was "not a prelude to any merger and that it was a joint effort in providing highest level of services and a nationwide solution to the corporate customers in all over the country."

Dube said that it gives both MTNL as well as BSNL a pan-India presence. BSNL is present across all the circles except Mumbai and Delhi which is MTNL's domain.

Dube said that the revenue sharing between the two (companies) have already been worked out. "We believe in bill and keep structure and there is no confusion on this," he added.

MTNL and BSNL jointly made presentation on the multi protocol label switching (MPLS) and virtual private network (VPN) to several corporates including ICICI, Bombay Stock Exchange and Central Bank of India, here today.

RL Bharadwaj, chief general manager, Maharashtra Telecom circle, said, "we are offering host of services under one roof."

At the sidelines of the meeting, Dube said the MTNL board will also meet on January 6 to provide broadband services to about 5 lakh customers in Mumbai and Delhi.

"We have cut short government procedure to provide assured services to our customers," Dube added.

Dube said the two companies were holding talks with Oil and Natural Gas Corporation (ONGC) to offer its corporate solutions. It has already provided services to the State Bank of India, the country's largest bank.