MTNL to submit revival plan to DoT by August

Last financial year, MTNL's standalone net loss was Rs 2,005.74 crore

State-run telecom firm MTNL will submit its revival plan to the Department of Telecommunications (DoT) by August this year which aims to bring the loss making public sector undertaking (PSU) out of the red.

"We are in advanced stages of finalising the report on the revival plan for MTNL and will submit it to the DoT by August," MTNL CMD P K Purwar told Press Trust of India.

On the revival plan, he said it includes suggestions for expansion of service network, ways to increase the Navratna firm's market share as well as cost optimisation measures.

The plan includes partnering with state-run BSNL to provide equipment for its mobile services in Delhi and Mumbai circles as managed service provider on revenue sharing basis.

The roadmap also includes expanding basic or fixed services network in partnership with private players on a revenue share basis.

Besides, MTNL is also targeting a revenue of Rs 1,000 crore in two years from asset monetisation as it looks to turn profitable in this financial year ending March 2017.

The asset monetisation includes Rs 750 crore from optic fibre and Rs 50 crore from tower business.

Last financial year, MTNL's standalone net loss narrowed to Rs 2,005.74 crore, from Rs 2,893.39 crore a year-ago.

MTNL had been a profit making company till 2008-09 and has contributed around Rs 43,023 crore to government in form of tax/fee/dividend till 2014-15.

Since 2009-10, there has been a continuous reduction in its revenue as against almost fixed operating cost, which has affected its profitability. The PSU has been unable to invest in expansion of its networks due to financial distress.

The government has provided financial assistance to both for refund of surrendered broadband wireless access (BWA) spectrum. Under this head, Rs 4,533.97 crore has been refunded to MTNL through bonds.

MTNL was given broadband and 3G spectrum for which it paid Rs 11,000 crore in 2010 that has impacted its balance sheet.