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MTNL unable to compete with private telcos
By siliconindia
New Delhi: MTNL has expressed its inability to take on its private counterparts, Reliance, Airtel and others, arguing that its growth has been restricted to only metros - Delhi and Mumbai, and it is compelled to dish out huge money to BSNL for calls made outside these metros, reports Indian Express.
In a recent meeting with PMO officials, the top brass of MTNL pointed out that tele-density was increasing in tier-II and tier-III cities and in rural areas, while the navratna company's operations are restricted to Delhi and Mumbai. "For any calls made outside Mumbai-Delhi zone, MTNL has to pay 
0.36 per minute carrier charges to Bharat Sanchar Nigam (BSNL), leaving barely any profit margin in calls across cities. Thus MTNL is not in a position to compete with its competitors like Airtel, Reliance, Tata Indicom and Vodafone who enjoy a pan-India presence," they argued.
Due to multiple telecom operators both in Mumbai and Delhi, telecom market in both cities have become extremely competitive in the last ten years. MTNL has implemented three Voluntary Retirement Schemes till date to slash its manpower strength from 62,000 in 1986 to 46155 as on March 31, 2009. The PSU has rolled out 35.14 lakh fixed line connections, 46.79 lakh mobile connections and has 7.35 lakh broadband customers. It has an authorized capital of 800 crore.
0.36 per minute carrier charges to Bharat Sanchar Nigam (BSNL), leaving barely any profit margin in calls across cities. Thus MTNL is not in a position to compete with its competitors like Airtel, Reliance, Tata Indicom and Vodafone who enjoy a pan-India presence," they argued.
Due to multiple telecom operators both in Mumbai and Delhi, telecom market in both cities have become extremely competitive in the last ten years. MTNL has implemented three Voluntary Retirement Schemes till date to slash its manpower strength from 62,000 in 1986 to 46155 as on March 31, 2009. The PSU has rolled out 35.14 lakh fixed line connections, 46.79 lakh mobile connections and has 7.35 lakh broadband customers. It has an authorized capital of 800 crore.