BSNL-MTNL merger in the offing?

NEW DELHI: The pressure of huge losses and competition has forced consolidation in the PSU telecom space as Department of Telecom is currently working on a proposal for merger of its two ailing PSUs – BSNL and MTNL – to revive the state-owned telecom firms.

The BSNL-MTNL merger is “one of the many components” of the overall revival plan being worked out for the two corporations, a source said on Tuesday, adding that a final call on the matter will be taken by the Union Cabinet.

The plan includes the MTNL being merged with the BSNL.