MTNL jittery over competition fears

DALAL STREET SPIKES

State-run telecom company Mahanagar Telephone Nigam Ltd (MTNL) was hammered on Monday on concerns of possible competition from Bharat Sanchar Nigam Ltd (BSNL) in the Mumbai circle.

The counter, after hitting the day's low of Rs 124.60, closed 2.8 per cent lower at Rs 126.50 with volume accounting for more than 3.91 lakh shares on the Bombay Stock Exchange (BSE).

There were reports that the government may give licence to state-owned BSNL to start telecom services in Mumbai and Delhi, where MTNL is the sole operator.

According to reports, BSNL has filed an application with the Department of Telecommunications (DoT) seeking an amendment to its operating licence to include the Mumbai and Delhi circles as well.

Analysts said if BSNL is given the licence, MTNL may face competition to maintain its market shares in the two metros it operate "" Mumbai and Delhi.