A recommendation for the allocation of 4G spectrum has been given only to Bharat Sanchar Nigam Ltd (BSNL) in Delhi and Mumbai circles, and not to Mahanagar Telephone Nigam Ltd (MTNL) as earlier decided by the Group of Ministers (GoM). This recent decision is followed by the GoM’s decision to defer the merger of the two State-owned firms, citing MTNL’s high debt.

 

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According to the sources without any 4G spectrum allocation, MTNL will have to use BSNL’s radio waves to offer its services. MTNL will keep providing 2G services in the two circles in which it operates using its own spectrum. A decision on 4G spectrum allocation will be taken only after the Cabinet’s decision regarding both the companies’ merger. The GoM chaired by Defence Minister Rajnath Singh last week deferred the merger as MTNL becoming debt-free was one of the pre-conditions. Now the Cabinet has to take a formal decision on the merger. The Government approved the merger of the ailing telecom firms; BSNL and MTNL allocation of 4G spectrum for both the companies on October 23, 2019. BSNL sought 2100 MHz spectrum for pan-India operations excluding Rajasthan, whereas MTNL wanted 1800 MHz for Delhi and 2100 MHz for Mumbai.

BSNL’s EBITDA rose from a loss of ₹3,596 crores for September 2019 to a profit of ₹602 crores in September 2020, for MTNL the figures rose to a profit of ₹276 crores in September 2020, from losses of ₹549 crores in September 2019. On January 1, 2021, BSNL had invited proposals for prior registration and proof of concepts from many Indian companies for its 4G tender for 57,000 sites, consisting of 50,000 being planned for BSNL and 7,000 for MTNL.

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