It is reported that MTNL has decided to share its towers with the private companies to mop up additional funds to make up the loss incurred by it. MTNL has posted a loss of about Rs. 2,800 crores in 2010-11. It has got about 1400 towers in Delhi and Mumbai where it operates. It is understood that Expression of Indents (EoI) has also been called for the sharing business.Earlier also MTNL had sharing agreements with some private companies.
It seems that BSNL is also on the look out for sharing of its 40,000 or so towers. It had posted a loss of Rs.1823 crores in 2009-10 and is having more loss in 2010-11, which will be known when the accounts for the year are finalised.
The moot question is whether it will benefit the PSUs or will result in complication and loss of business in the long run? A serious examination is necessary.