Friday, July 3, 2015

MTNL rallies as government plans to delist stock before merger with BSNL

MTNL rallied as much as 19.87 per cent in intraday trade on Friday on media reports that the government is planning to delist the stock before merging the telecom operator with Bharat Sanchar Nigam Ltd.However, MTNL said that there was no delisting proposal under consideration of the board. "BSNL, MTNL merger decision will be taken in 4-5 months after studying the IIM report on merger," the Telecom Secretary said.The telecom department (DoT) in September 2014 had set a cutoff date of July 31, 2015 for concluding the much-discussed merger of struggling state-run telecom companies — BSNL and MTNL.MTNL runs telecom services in Delhi and Mumbai while BSNL offers telecom coverage in the rest of India.BSNL has 61,622 mobile towers, the second largest tower portfolio among all telcos. A sizeable chunk of its tower assets are colocated with landline exchanges to meet business needs.BSNL is also the holder of one of the largest land banks among state-owned firms with properties reckoned to be running into thousands of crores of rupees across 3,500 towns.Meanwhile, the full mobile number portability (MNP) also comes into effect today. Now, Mobile phone users will be able to retain their numbers when they relocate to any part of the country even if they change operators .
                      courtesy :-ET Markets

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