MTNL To Invest Rs. 190 Crores To Upgrade The Services: It May Get 4G Gpectrum: Manoj Sinha:
Cash-strapped telecom firm MTNL is investing Rs. 190 crores to upgrade its services and may also be allocated 4G spectrum to help stay relevant in the highly competitive market, telecom minister Manoj Sinha has said.
MTNL To Invest Rs. 190 Crores To Upgrade The Services: It May Get 4G Gpectrum: Manoj Sinha
The department of telecom is seriously considering to allow 4G spectrum to state-run Mahanagar Telephone Nigam (MTNL), which serves New Delhi and Mumbai, and Bharat Sanchar Nigam (BSNL), which helps the rest of country, he says.
Now we are the attempt to make its MTNL services better.
After a long time, MTNL is investing money in improving its network and services both in the places New Delhi and Mumbai.
I feel they will roll out something in the next three to four months and their services will be better,” Sinha says over the weekend.
Conceding that MTNL’s financial situation is complicated, he says the state is running a firm which is investing Rs. 190 crore in a project that will see it installing new base transceiver stations, among the other initiatives.
Sinha says the allotment of 3G spectrum and the loans are taking for the same weekend. The Financial Position of the company in such a way that it is unable to pay the interest on the loans.
Reports are pegged the listing company’s debt at Rs. 16,870 crores as of December 2017.
The telecom firm narrows its losses to Rs. 639.01 crore in the quarter ended in the year 2017, against Rs. 819.96 crore in a same quarter of the year 2016.
Its total income stands at Rs. 852.64 crores in the quarter, against which the amount is Rs. 836.43 crore.
The company is yet to report March quarter and full year numbers.
The minister said an asset monetization programme is thinking about, wherein excess assets can monetize. He, however, says that the assets are owns by multiple entities of the company, the DoT and the government of India.
He said the DoT is excellent selling off the assets it holds and also promised to take other sale proposals involving government of India-owned holdings to Cabinet.
The minister, however, declines to give an estimate of how much can the company raises through such an exercise or timelines on the same, adding that the process will be carried out as per the report of a consultant.
On the 4G spectrum allocation, Sinha says, There is a spectrum handicap to both BSNL and MTNL. So, we are seriously considering how to providing them 4G spectrum so that they can become a viable and a significant player in the telecom sector.
It can notice that the Parliamentary standing committee on information technology in March has asked the government to allocate 4G spectrum to the two companies at the earliest to help them compete and survive in the market.
Both the companies have reportedly submitted proposals for launching 4G services where they operate with government support on a Spectrum.
BSNL operates in the 20 telecom circles, while MTNL has operations in the remaining two areas of Delhi and Mumbai.
Sinha says BSNL has reported operating profit for the last three years and has gained market share despite the entry of Reliance Jio resulting in a decline for other entrenched companies.
Introduction of Internet telephony will be a big positive for BSNL, the minister said.
So, these are the points to describes on the MTNL to invest Rs. 190 crores to upgrade the services; it may get 4G spectrum, Manoj Sinha.
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