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Mahanagar Telephone Nigam Limited

Mahanagar Telephone Nigam Limited (MTNL) is an Indian state-owned telecommunications service provider that operates fixed-line, broadband and mobile services in the metropolitan cities of Mumbai and New Delhi. Headquartered in New Delhi, the company functions under the administrative control of the Department of Telecommunications, Ministry of Communications, Government of India.

Key facts

Name Mahanagar Telephone Nigam Limited
Type Public sector undertaking (Government of India)
Industry Telecommunications
Founded 1 April 1986
Headquarters New Delhi, India
Areas of operation Delhi and Mumbai
Parent Department of Telecommunications, Government of India
Listings BSE, NSE

Background

Before MTNL was created, telecommunications services across India were provided directly by the Department of Telecommunications. To bring greater operational autonomy and a corporate management style to the country's two largest urban telephone networks, the Government of India carved out the metro telephone systems of Delhi and Mumbai and placed them under a new corporate entity. MTNL was incorporated in 1986 to take over operations in these two cities, while the rest of the country continued under the DoT (and later under Bharat Sanchar Nigam Limited, formed in 2000).

Services

MTNL provides a range of telecom services within its licensed areas:

  • Fixed-line (landline) telephone services
  • Broadband internet, marketed under the Triband brand
  • Mobile services under the Dolphin (postpaid) and Trump (prepaid) brands, including 2G and 3G networks
  • Leased lines, ISDN and enterprise data services
  • IPTV and value-added services

MTNL was among the early operators in India to launch 3G services on the WCDMA standard.

Corporate status

MTNL is listed on the Bombay Stock Exchange and the National Stock Exchange of India. It was earlier listed on the New York Stock Exchange through American Depositary Receipts. The company was conferred Navratna status by the Government of India, recognising its operational and financial autonomy, though its commercial position has weakened significantly with the rise of private mobile operators in its two metro circles.

International ventures

MTNL has held overseas interests through joint ventures, most notably Mahanagar Telephone Mauritius Limited (MTML), which provides telecom services in Mauritius, and United Telecommunications Limited (UTL) in Nepal, in which MTNL has been a stakeholder along with other Indian public sector partners.

Proposed merger with BSNL

In view of sustained financial losses at both state-owned telecom carriers, the Union Cabinet in 2019 approved a revival package that included the merger of MTNL with BSNL, voluntary retirement schemes for employees, monetisation of assets and allotment of 4G spectrum. Pending the completion of the merger, MTNL has been operated as a subsidiary-like entity working in close coordination with BSNL.

Significance

For several decades, MTNL was the principal telephone service provider in Delhi and Mumbai, two of India's largest telecom markets, and played a central role in expanding telephone penetration, introducing digital exchanges, and rolling out broadband internet in these cities. Its corporatisation in 1986 is often cited as an early step in the gradual reform and commercialisation of India's telecommunications sector.

References

  • Wikidata entry: Q1884798
  • Department of Telecommunications, Government of India