State-run telecom company Mahanagar Telephone Nigam Ltd’s (MTNL) net loss was slightly lower for the April-June quarter at Rs 718.02 crore, a regulatory filing. The company posted a net loss of Rs 734.24 crore during the corresponding quarter in 2015-16. The total income of the company for the April-June quarter was at Rs 744.72 crore, which is slightly less than Rs 780.12 crore clocked during the same period a year ago. Also Read - Airtel 5G Mumbai trials show download speeds of 1.2Gbps, upload at 850Mbps
State-run telecom firm MTNL had submitted its revival plan to the Department of Telecommunications (DoT). The revival plan aims to bring the loss making public sector undertaking (PSU) out of the red. The plan includes partnering with state-run BSNL to provide equipment for its mobile services in Delhi and Mumbai circles as managed service provider on revenue sharing basis. Also Read - DoT permits telecom service providers to go ahead with 5G trials
The roadmap also includes expanding basic or fixed services network in partnership with private players on a revenue share basis. Besides, MTNL is also targeting revenue of Rs 1,000 crore in two years from asset monetization as it looks to turn profitable in this fiscal ending March 2017. The asset monetization includes Rs 750 crore from optic fibre and Rs 50 crore from tower business. Last fiscal, MTNL’s standalone net loss narrowed to Rs 2,005.74 crore, from Rs 2,893.39 crore a year-ago.
MTNL had been a profit making company till 2008-09 and has contributed around Rs 43,023 crore to government in form of tax/fee/dividend till 2014-15. Since 2009-10, there has been a continuous reduction in its revenue as against almost fixed operating cost, which has affected its profitability. The PSU has been unable to invest in expansion of its networks due to financial distress.
With additional inputs