MTNL up 10% on likely pact with BSNL for pan India services

Shares of Mahanagar Telephone Nigam (MTNL) are locked at 10 percent upper circuit at Rs 15.32 on Tuesday. Reports suggest that  BSNL and MTNL are likely to sign pact for offering pan-india mobile services which will enable the two companies to utilise each others' network.

There were pending buy orders of 2,97,775 shares, with no sellers available on the Bombay Stock Exchange. The stock rallied 50 percent in September so far.

According to sources, the two telecom PSUs are not able to provide services throughout the country "on competitive basis" due to geographical restrictions as per licence conditions, while their privately-run rivals are providing pan-India services.

"BSNL and MTNL have decided to sign MoU (Memorandum of Understanding) to create synergy between the two organisations to provide pan-India services," sources told PTI..

MTNL provides services in Delhi and Mumbai while the rest of the country is covered by BSNL.

As per the agreement, MTNL would avail the network of BSNL only for national roaming service for its subscribers except in Delhi and Mumbai.

In the same way, BSNL will only use MTNL network for roaming services to its customers in Delhi and Mumbai.

(With inputs from PTI)