The Economic Times: The government still hasn’t abandoned the plans to merge the two state-owned telcos – MTNL (it operates in Delhi and Mumbai circles) and BSNL (rest of the country). The centre is reportedly considering a new strategy where in the first phase, the government may form a holding company with BSNL and MTNL as its subsidiaries. After three years, the two PSUs would be merged into one entity.
A consortium of consultants led by ICICI Securities has recommended this as the most practical approach to synergise operations of the two PSUs. There were other options too: The first option was acquisition of MTNL by BSNL followed by an IPO by BSNL. Then came in merging MTNL into BSNL, merging BSNL into MTNL, and MTNL acquiring BSNL.
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