MTNL and BSNL Sign 10-Year Partnership Agreement

In a significant development for India's telecommunications sector, the MTNL board has approved a 10-year service agreement with Bharat Sanchar Nigam Limited (BSNL). Announced on August 14, the agreement allows for adjustments or termination with a six-month notice, or extension through mutual consent, pending regulatory approval from the Department of Telecommunications (DoT) and the Ministry of Company Affairs (MCA). This partnership aims to enhance service quality and operational synergy between the two state-owned entities. The agreement is seen as a strategic move to consolidate telecom services in India, potentially leading to improved efficiency and customer satisfaction. The collaboration between MTNL and BSNL is expected to leverage their combined resources and expertise, fostering a more robust telecommunications infrastructure in the country. In addition to the service agreement, MTNL's board has made several other key decisions, including plans to divest its stake in Mahanagar Telephone (Mauritius) Ltd and sell shares in MTNL STPI IT Services Ltd. These divestments are in line with the Joint Venture Agreement with STPI and other regulatory requirements. Should STPI choose not to proceed with the purchase, MTNL will consider competitive bidding for the sale. Furthermore, the board has approved the closure of Millennium Telecom Limited, a wholly-owned subsidiary. Following these announcements, MTNL's shares saw a notable increase, closing at Rs 62.95 apiece, reflecting a rise of 4.99 percent by the end of the trading day.