BSNL-MTNL to be merged?

New Delhi Dec 23: In a move to ensure that Government company also sustains in telecom sector a parliamentary panel had suggested the merger of state-owned companies BSNL and MTNL.

The Panel report placed in Lok Sabha stated that "for the long-term survival and success of MTNL and BSNL, their merger would only be a viable proposition - in view of the fact that their merger would give both the entities a chance for competition against the emerging consolidated private sector players".

Currently, a expert group had been constituted to examine the proposal and it had suggested two options.One is MTNL should be revived with support from the government and shareholders and seeking opportunities "to sell and divest select business assets".

Another option suggested is the merger of MTNL with BSNL to become a pan-India integrated telecom operator offering wired and wireless telephony services.

However, A final decision is yet to be taken and DOT may opt for the revival of MTNL . Experts suggest that MTNL should be merged with BSNL so that resources can be optimized.