MTNL seeks Rs 6,000 crore equity to launch 4G services, to float tender for vendors

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NEW DELHI: State-owned Mahanagar Telephone Nigam Ltd (MTNL) has sought permission from the federal government for preferential capital issuance of Rs 6,292 crore to launch fourth-generation (4G) Companies and would quickly launch a tender to choose a gear vendor accomplice for the formidable rollout.

MTNL operates in Delhi and Mumbai metropolitan areas advert is planning to launch high-speed information Companies on the 1800 Mhz and 2100 Mhz spectrum bands.

“We have submitted a plan for preferential equity, and without diluting the company’s ownership, we have said that we will issue preferential capital of equivalent amount which is coming at Rs 6,292 crore for 4G launch,” MTNL chairman PK Purwar instructed ET.

MTNL is a listed firm and the federal government has a 56% stake within the service supplier, whereas Life Insurance Corporation (LIC) holds 19% with the remaining 25% with the general public.

“MTNL has asked for 1,800 Mhz spectrum band in Delhi and 2,100 Mhz in Mumbai. The proposal is in the advanced stage of persuasion within the government,” Purwar added.

If permitted, the transfer to difficulty equity shares for required airwaves wouldn’t add to the debt burden of the Telecom service operator, which is already has Rs 18,000 crore of loans excellent.

Purwar mentioned that the federal government has already indicated that the proposal can be thought of positively and that might assist to flip a nook for the ailing Telecom firm.

Battered by intense rivalry after billionaire Mukesh Ambani-owned Reliance Jio’s foray into India’s Telecom sector in September 2016, losses on the state-run telco, which is but to deploy high-speed information networks regardless of its presence in high two city and data-hungry places, has expanded.

MTNL posted standalone internet lack of Rs 900 crore within the quarter ended March 31, 2018, and it rose to Rs 2,973.03 crore from Rs 2,941.08 crore for the complete 12 months.

“We are already in a process to finalise the tender to select the equipment vendor, and the moment, it (proposal) gets Cabinet approval, we will float it,” Purwar mentioned, including that the telco might commercially rollout 4G Companies inside six to eight months as soon as radio waves are allotted.

4G spectrum would assist the service supplier to compete out there because the cell enterprise, in accordance to Purwar, is very titled in the direction of the newer expertise right this moment.

Currently, MTNL has greater than eight million subscribers together with 1.1 million broadband shoppers.

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