In this news, we discuss the MTNL may turn into virtual network operator under BSNL supervision.
Last year, the government decided to merge two loss-making state-owned enterprises: Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) in order to revive them. Now, under the new plan, it is believed that MTNL will operate as a Virtual Network Operator (VNO) as per BSNL guidelines.
Under the new agreement, MTNL will oversee fixed, mobile and broadband telephone services for BSNL. Then BSNL can also start offering MTNL services in Mumbai and New Delhi circles as indicated by Business Standard.
“Internationally, a VNO is only engaged in mobile services, but here we have refined the definition a bit. Therefore, MTNL can provide all services from fixed line, mobile and broadband, ”an official told BS.
The structure of the agreement was defined by the Department of Telecommunications (DoT) internally. The DoT will now approach the telecommunications department’s highest decision-making body, the Digital Communications Commission (DCC), for its approval.
Recently, the DoT panel for BSNL’s 4G tender also recommended that only Indian companies be allowed to provide core network products and services to state-owned telecommunications operators. DoT suggested allowing system integrators (SI model) to bid for BSNL tender for 50,000 4G sites valued at over Rs 8,000 crore.
But industry experts and analysts say adoption of the IS model can hurt the ability of telecom operators to compete in the market. “The SI model poses serious questions even though BSNL was opposed to certain areas as mentioned in the recommendations of the DoT panel. From the heart to the SI model is not proven, ”a senior executive at a major foreign equipment supplier told ET Telecom.
Last week BSNL showcased its 4G services at the Atal tunnel when the new route opened on October 3. The company has installed BTS (Base Transceiver Station) towers at the 9.02 km tunnel, which means all BSNL users with 4G services will enjoy 20 to 25 Mbps internet speed when crossing the underpass.
In an effort to revive BSNL and MTNL by the government, MTNL may operate as a Virtual Network Operator (VNO) under the supervision of BSNL.
- MTNL could operate as a Virtual Network Operator (VNO) under the supervision of BSNL in the future.
- MTNL can oversee fixed, mobile and broadband services for BSNL.
- BSNL can also start offering MTNL services in Mumbai and New Delhi circles.