MTNL may function as virtual network operator under BSNL: Report

With the revival of state-run telcos Bharat Sanchar NIgam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) at stake, the Central government seems to have chalked out a plan under which MTNL will function as a virtual network operator (VNO) under the supervision of BSNL, reported Business Standard.

“Internationally, a VNO is engaged only in mobile services, but here we have tweaked the definition a bit. Therefore, MTNL can provide all the services from landline, to mobile and broadband,” an official privy to the development told the publication.

Under the structure of the arrangement, MTNL would oversee landline, mobile, and broadband services for BSNL and the latter may start offering these in Mumbai and New Delhi circles via MTNL.

As per the sources cited above, the decision was taken by the Department of Telecommunications internally and it will now approach the Digital Communications Commission, the apex decision making body in the telecom sector, to seek approval.

A VNO status will further mean that the future appointments in MTNL will drastically come down but the remaining senior management along with the leftover staff will continue to function as normal, said the publication.

The ailing telco MTNL will only be left with director (human resources and enterprise business) as the director (finance) superannuated in September 2020 and the director (technical) Sanjeev Kumar joined Telecommunications Consultants India Limited (TCIL) earlier in August this year.