DoT wants BSNL, MTNL to work together to strengthen network

The department of telecom (DoT) wants BSNL and MTNL to join hands on not just ramping up the latter’s 3G network in the National Capital Region (NCR) to ramp up service experience for customers, but also wants both the operators to pitch together for enterprise customers on a pan-India basis, utilising each other’s networks across the country. “Several areas of cooperation between the two have been identified under Synergy. A major one is that BSNL can work with MTNL on improving its GSM network in Ghaziabad, Faridabad and Gurgaon where the former’s subscribers are served by MTNL’s 3G network. Also the prepaid Dolphin recharge facility of MTNL can be expanded with more exciting offers. At present it is very limited compared with rivals,” a senior official said. Last month DoT unveiled a strategic plan, Synergy, which focuses on better coordination among the seven PSUs under the department over a host of issues including manpower utilisation, resolving legal disputes in-house and utilisation of vacant land holdings. It covers operators BSNL and MTNL; equipment maker ITI; consultant TCIL; certification agency TEC; technology developer CDOT; and the special purpose vehicle (SPV) created for Bharat Net, BBNL.

The official said that another area that has been selected is equipment purchase. Here, BSNL can invest on upgrading and expanding MTNL’s mobile network as a managed service partner. BSNL’s NGN technology can be provided to MTNL for Delhi and Mumbai on a commercial basis. This will help MTNL is generating more business and providing better services. Developed by CDOT for BSNL, NGN, or next generation network, is an IP-based technology that can handle multiple types of traffic like voice, data and multimedia. “Another area for joint work is enterprise business. They can collaborate on acquisition of enterprise customers and high-value business on a pan-India basis, utilising their infrastructure by offering attractive tariff plans and single-window interfaces,” a senior DoT official said.

Both operators can utilise resources on expanding business in national long-distance (NLD) and international long-distance (ILD) calls. Here, MTNL can offer its NLD traffic (except between Delhi and Mumbai) to BSNL and in return seek competitive rates. On the other hand, BSNL can provide CLS (cable landing station) and submarine cable system to MTNL for establishing ILD services, he added. For rationalising costs, BSNL and MTNL can jointly procure internet bandwidth to get maximum benefit or volume-based discount, the official said, adding that sharing and development of real estate assets as well as joint use of optical fibre network in the NCR will also help in reducing capex and opex.

Also, development of a common dealer and franchisee network in NCR and both together exploring new possibilities of growth within the country and abroad through JVs/subsidiaries will help expand revenue. “The department has also identified some other areas where synergies can be achieved. For instance, BSNL can make available the call duration records (CDR) system to MTNL on a chargeable basis. Both can integrate their IT systems and data centres for better customer experience. MTNL can also make use of BSNL’s enterprise resource planning (ERP) software,” the official said.