Bsnl, Mtnl May Merge: Govt

[Chirag 5]

MTNL-BSNL merger route by Nov-end

BS Corporate Bureau in Mumbai | October 11, 2004 09:52 IST

Rediff.com

The government is likely to finalise the route of merging the two state-owned telecommunications firms -- MTNL and BSNL -- by end of November 2004.

Shakeel Ahmad, the minister of state for communications and information technology, told Business Standard, that the merger will be affected by end of this year.

While confirming that the government was looking at various options of merging the two entities, the minister pointed out that "we are evaluating three option to facilitate merger. The latest being buying back MTNL's shares from public."

MTNL shares are listed on the stock exchange while BSNL is a wholly owned company of the government.

Shakeel Ahmad was speaking to mediapersons on the sidelines of the Communique '04 VIII National Telecom Seminar organized by the Symbiosis Institute of Telecom Management in Pune.

The other options considered by the government include divesting 5 per cent stake in BSNL and list it on the bourses and then merge the two companies.

Also setting up a holding company with whom the shares of both the telcos will be placed, is also being actively considered, the minister pointed out.

Ahmad also pointed out that the government was in the process of getting comments from all the concerned parties in the telcos.

"It is imperative and important to get comments and views of the various departments of these two telcos and also the ex-officials. What is important is that there should be synergy of operations."

Also the ministry will get advice from consultants to strengthen the synergies between the two state-owned companies. The government first mooted the proposal for merging these two service providers way back in 2001.

Pramod Mahajan, the then minister of telecommunications had favoured the idea. Even the senior officials of these telcos have favoured the proposal.

A K Sinha, chairman and managing director of BSNL recently pointed out in Mumbai that "there is an urgency from the government to merge the two companies."

Considering the technology and regulatory changes in the telecommunications, it makes sense for these telcos to be merged, government officials had stated.

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If this happens, MTNL subscribers r goin to be at a gr8 advantage! BSNL can definitely give RIM a run for its money in the 2 huge Metros! ... Waiting for this to happen!

[hyper 0]

today announced.... MTNL & BSNL merger will take place next year.

its in today's Times of India.

[deepu 0]

The Indian government will decide on the merger of two state-run telecom behemoths in March after examining recommendations from merchant bankers, IT and Communications Minister Dayanidhi Maran said Tuesday.

The bankers are expected to submit their roadmap for the merger of Bharat Sanchar Nigam Ltd. (BSNL) with Mahanagar Telephone Nigam Ltd. (MTNL) by the end of next month, Maran told reporters on the sidelines of a business summit here.

The government appointed ICICI Securities and ABN Rothschild as consultants to explore proposals on how the merger of the country's two telecom services majors could take place.

The proposed merger of BSNL and MTNL will create the largest telecom company by revenue in India with the turnover crossing Rs.350 billion ($8.03 billion).

Responding to Reliance Infocomm's assertion that it had not violated any rules in the alleged rerouting of international calls, Maran said the government would submit its view on this to the telecom industry dispute settlement tribunal.

"The fact that we have gone to court against them clearly shows that we are very serious about this issue," he said, refusing to give details.

Reliance Infocomm, the telecom services arm of corporate behemoth Reliance Industries, said Tuesday it had not violated the license agreement with the government in the alleged rerouting of international calls.

The government has imposed a Rs.1.50-billion penalty on Reliance Infocomm for the alleged violation of the telecom license agreement.

Maran said the process of taking a re-look at the Indian Information Technology Act 2000 was on with a view to make the provisions more industry friendly.

"We need to do this to keep up with the rapidly evolving IT and communications sectors, which are in a state of constant flux, (and to be) in line with global trends and developments," he said.

"In order to ensure that the government remains a facilitator and catalyst in the growth of the Indian IT and ITES industries, we have to ensure that our policy framework mirrors the dynamism of the sector.

"As we move ahead, it will be the attempt of this government to revisit various provisions of the act and remove unnecessary constraints."

[abhay 0]

BSNL, MTNL may merge: Govt

he government is "carefully" considering all possibilities before deciding on the issue of merging MTNL and BSNL, the Lok Sabha was informed on Wednesday.

"Considering the complexity of the issues involved in the restructuring exercise, the government is carefully weighing all options before taking a decision so that interest of all the stakeholders are protected and the ultimate objectives of restructuring exercise are met," Minister of State for Communications and IT Shakeel Ahmad said in a written reply.

He said the government was considering different options for restructuring MTNL and BSNL with the objective of bringing higher synergy in their operations.

On the issue of review of various provisions of Broadband Policy and reconsidering TRAI's earlier recommendations pertaining to Local Loop unbundling and fiscal incentives for Broadband, he said TRAI's suggestions were being examined.

TRAI had recently sent a communicaiton to the government seeking a review of the various provisions of the Broadband Policy, which envisages 3 million broadband subscribers by this year end.

As on October 31, 2005 the number of broadband subscribers was 0.71 million, he said.

The draft IT (Amendment) Bill, 2000 to deal with offences like video voyeurism and child pornography has been sent to the ministries and departments concerned for comments.

On investments made in the telecom sector till March this year, he said the estimated amount is Rs 2,07,000 crore and all the sub-sectors has been opened up for private players.

http://economictimes.indiatimes.com/articleshow/1313264.cms