BSNL is being denied entry into the lucrative Delhi and Mumbai markets by the Indian government – it’s not being given a Universal Access Services Licence (UASL), and the merger with the other public sector telecom operator MTNL appears to have been stalled. MTNL operates in Delhi and Mumbai, and there have been talks of a merger between the two telcos; BSNL, which currently has the mandate to operate in the rest of the country is the larger of the two telcos with a 28.06 percent of the Indian telecom market. Options for the restructuring have been recommended by a consortium of consultants led by ICICI Securities, but the government has decided to put the merger on hold. So either way, BSNL loses.
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