MTNL eyes B2B business, corporate, govt clients to improve profitability

State-run telecom MTNL is now looking to focus its services on corporate and government clients, and business-to-business as the debt-laden company seeks better profitability. Mahanagar Telecom Nigam Limited (MTNL) has decided to shift its focus from individual customers under a move to streamline services, The Indian Express reported citing unidentified company officials. However, the PSU will keep operating its business-to-customer segments while focussing more on boarding corporate clients. With a total debt of Rs 20,000 crore, MTNL now looks to save costs and will try to make payments on its bank loans on time in order to avoid any default or paying penalties on interest payments, the officials added.

Both state-run Bharat Sanchar Nigam Limited (BSNL) and MTNL have been struggling for a while. Last year, the central government had approved a Rs 69,000 crore plan to revive MTNL and BSNL; under the plan, these two telcos were also merged. Employees at both the companies were also offered a voluntary retirement scheme (VRS) for which nearly 93,000 staffers opted.