BSNL unlikely to get permission to enter Mumbai, Delhi

BSNL and MTNL are the two government owned telecom companies which are serving the customers in the Indian market.

MTNL has a presence in the lucrative Delhi and Mumbai markets while the BSNL has access to the rest of India.

However, BSNL since sometime wanted to enter Delhi and Mumbai which are two of the largest mobile and land line markets in the country.

They have already applied to DoT seeking permission to enter the two circles. But the Department of Telecom has said that competition between PSUs in same service areas cannot add much value to shareholder or customers.

BSNL’s demand became somewhat justified when MTNL got the National Long Distance license. They are claiming that “If they (MTNL) can enter directly in the STD segment, we should also be allowed to go to Mumbai and Delhi.”

A company official added: “The condition of a promoter holding 10 per cent stake in company can’t operate in the same circle cannot be the reason of BSNL not being allowed to operate in Delhi and Mumbai so far.”