MTNL jumps on network sharing pact with BSNL

MTNL surged 5.29% to Rs 16.13 at 9:17 IST on BSE after the company on Tuesday signed a memorandum of understanding with BSNL for sharing network and infrastructure for greater operational synergy and single window customer delivery.

Meanwhile, the S&P BSE Sensex was up 33.92 points or 0.17% at 19,954.13.

On BSE, 1.77 lakh shares were traded in the counter as against average daily volume of 13.54 lakh shares in the past two weeks.

The stock hit a high of Rs 16.47 and a low of Rs 15.97 so far during the day.

Mahanagar Telephone Nigam (MTNL) after market hours on Tuesday, 24 September 2013, said that the company has signed a memorandum of understanding (MoU) with BSNL for sharing network and infrastructure of each other for greater operational synergy and single window customer delivery. This will result into greater synergy between the two organizations, MTNL said. BSNL operates mobile, fixed-line and Internet services in 20 of India's 22 telecommunications zones, while MTNL operates in the key Delhi and Mumbai zones.

MTNL reported a net loss of Rs 1256.19 crore in Q1 June 2013, higher than net loss of Rs 1059.29 crore in Q1 June 2012. Net sales rose 6.3% to Rs 883.16 crore in Q1 June 2013 over Q1 June 2012.

MTNL provides basic phone, internet and cellular mobile telephony services in Delhi and Mumbai. The Government of India (GoI) holds 56.25% stake in MTNL (as per the shareholding pattern as on 30 June 2013).

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