BSNL cash demand talk shorts MTNL

DALAL STREET SPIKES

PSU telecom major MTNL was hammered for second consecutive trading session following reports that BSNL has raised a demand of a huge Rs 1,840 crore from MTNL towards network charges since 2000-01.

The stock in Tuesday's trading was down 4.98 per cent to Rs 111.55 amid profit booking across the board. Market sources said, selling pressure continued in MTNL counter following BSNL demand.

The charges mainly pertain to interconnection user charges (IUC) consequent on introduction of the IUC regime from May 2003.

There was a defined revenue share formula in the pre-2000 regime (prior to BSNL's creation), and post 2003, telecom regulator Trai introduced the IUC regime, which includes payment of access deficit charge to BSNL.

The stock in last two trading sessions has now lost 8.59 per cent.