Will MTNL be Closed?

India’s Telecom company MTNL, which is a public sector unit responsible for telecom services in big cities like Mumbai and New Delhi has been continuously making losses over the past many years. Rumors were spreading in Indian telecom market about the closure of MTNL.

In fact, the Modi Government had announced the Government’s strategy to close down all Public sector Units that have been making losses for many years. For some of such sick units, revival plans were announced, but did not work. Many of the Indian Public sector units are synonyms for inefficiency.

The telecom ministry clarified that they have no plan to shut down loss-making telecom company MTNL and the government is taking various measures to revive it, Union Minister Ravi Shankar Prasad hopes to give a chance for MTNL to come up through this revival plan.

MTNL is a customer for Fiber optic cables In India. MTNL has laid thousands of fiber optic cables across India’s largest cities of Mumbai and New Delhi. Both these cities have potential telecom customers. Both BSNL and MTNL follow the TEC specifications for fiber optic cables and accessories. The approval procedures is also same.

MTNL stands for Mahanagar Telecom Nigam Limited. Mahanagar means Big city. In India, both Mumbai and New Delhi are considered as big cities traditionally. Nigam means public. While BSNL is responsible for the rest of the country’s telecom services, MTNL’s scope of services is limited to these two big cities. MTNL has been pushing for Fiber to the home projects also in tie up with other private sector partners.

Though notoriously famous for inefficiency, closing down a telecom company will have major impact in the telecom market in India. MTNL as a buyer of fiber optic cables and accessories, closure will affect many of the suppliers of telecom products will also be affected. apart from thousands of its manpower. Government’s decision to announce revival plans for MTNL is a good sign for the telecom market in India.

Author: Praveen Gupta

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