No plan to merge BSNL, MTNL, says telecom minister

Telecom minister Manoj Sinha on Thursday ruled out any plans to merge public sector telecom firms BSNL and MTNL, which are reeling under financial stress.

"There is no thinking in the government on merging the two. But, we are taking steps to ensure that collaboration between BSNL and MTNL strengthens and benefits both the organisations," Sinha said after unveiling a strategic plan for the two public sector undertakings (PSUs).

There have been some discussions over the merger which will create a single pan-India telecom PSU as MTNL operates in Delhi and Mumbai while BSNL operates in the rest of the country. However, due to stiff opposition from the unions and other operational issues, the plan was never finalised. Both the companies are on a downward spiral due to stiff competition in the industry and have been posting losses for many years.

The strategic action plan announced on Thursday will include MTNL (Mahanagar Telephone Nigam Ltd), BSNL (Bharat Sanchar Nigam Ltd), Indian Telephone Industries (ITI), Centre for Development of Telematics (CDOT), Telecommunications Consultants India Ltd (TCIL), Testing and Certification of Telecom Equipments (TEC) and BharatNet (BBNL).

The plan will enable the telecom companies under the Department of Telecommunications (DoT) to work closely, bringing in operational synergy among them.

The strategy includes pooling in of resources, settlement of legal issues, effective utilisation of human resources. It has also called for the creation of a common platform for web-based online training by BSNL, in a time-bound manner. It also includes operational utilisation of vacant space, land and buildings within telecom PSUs and organisations within DoT, and promoting Make-in-India by taking advantage of preferential market access policy.

A review mechanism at DoT will keep the plans on track and a substantial progress will be made in next the six months.

Also, the telecom PSUs will refrain from going to court against one another and, instead, first approach DoT for dispute resolution. The strategic road map will also cover other areas like standards and certification, and preparing to tap opportunities in areas like 5G and Internet of Things (IoT).

Some organisations have excess manpower whereas there is a shortage in others, which is why the government will train and deploy manpower accordingly.

This plan was first initiated in January 2016 to look into the whole issue of synergy in totality and prepare a comprehensive plan covering various issues affecting the functioning of different organisations.

On whether the telecom ministry will intervene in the ongoing face-off between Cellular Operators Association of India (COAI) and telecom regulator Trai over the latter's latest order on tariffs, the minister said, "Trai is an independent regulator. Whatever the ministry has to do, it will do so with fairness and without bias."

COAI has said Telecom Regulatory Authority of India favours one operator with its recent regulations, which has distorted the telecom market.

...& ANALYSIS

• However, steps are being taken to ensure collaboration between BSNL and MTNL strengthens and benefits both the organisations
   
• The strategic action plan will enable the telecom companies under the Department of Telecommunications (DoT) to work closely, bringing in operational synergy among them
   
• The strategy includes pooling in of resources, settlement of legal issues, effective utilisation of human resources