MTNL, BSNL to merge: Parliamentary Panel

Q.  Parliamentary panel has suggested merger of which two PSU firms for their long term survival?
- Published on 20 Mar 17

a. MNTL, SAIL
b. BSNL, SAIL
c. MTNL, BSNL
d. None of the above

ANSWER: MTNL, BSNL
 
A parliamentary panel has suggested the merger of state-run telecom firms BSNL and MTNL for long term survival.

Committee on Petitions chaired by the BJP MP Bhagat Singh Koshyari in a report tabled in the LS on March 16, 2017 said the merger will be a positive move.

Synergies and advantages in an integrated national telecom infrastructure will pave the way for lower investment cost and greater ability to face competition.

Committee was formed after BJP MP Arvind Sawant received representation regarding service improvement in BSNL and MTNL.

The DoT informed the panel both public sector firms are facing financial resources and declining revenue on account of rising expenditure and loss of market share.

PSUs have not been able to adequately invest in expansion, modernisation of network on account of coverage issues.

Firms are now taking steps to modernise wireline and wireless networks.

MTNL has been unable to upgrade GSM and landline network for 3-4 years due to funds constraint.

Managed Service Model with BSNL is being explored for its mobile services.

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