Question : Losses in MTNL

(a) whether the Government-owned telecom operator MTNL continues to post losses and has failed to provide required facilities to their customers, both landline and mobile users;

(b) if so, the reasons therefor along with the loss suffered by the MTNL during each of the last three years, year-wise;

(c) whether the Department of Public Enterprises (DPE) has classified MTNL as ‘Incipient Sick Central Public Sector Enterprises (CPSE)’;

(d) whether DPE has issued guidelines on how to deal with the revival and restructuring of incipient sick Central Public Sector Enterprises (CPSE);

(e) if so, the steps taken by the Union Government for the revival and restructuring of MTNL;

(f) the success achieved so far; and

(g) the steps taken by the Union Government for providing better services to MTNL customers?

THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS &
MINISTER OF STATE IN THE MINISTRY OF RAILWAYS
(SHRI MANOJ SINHA)

(a) & (b) Mahanagar Telephone Nigam Limited (MTNL) is providing satisfactory telecom services in its license service areas of Delhi & Mumbai. MTNL is also meeting benchmarks of most of the Quality of Service (QoS) parameters prescribed by Telecom Regulatory Authority of India (TRAI) in respect of Landline/Broadband/Mobile services.The details of losses incurred by MTNL during the last three years are as under:
<pre>
Financial Year Profit /(Loss) for the period (in Rs. Crores)
2015-16 (2005.74)
2016-17 (2970.57)
2017-18 (2970.65)
</pre>
One of the major reasons for losses of MTNL is huge legacy staff cost. Besides, the service revenue is declining due to intense competition resulting into cut throat tariffs, inability of MTNL to infuse capital expenditure (CAPEX) to upgrade its network. All private telecom operators are offering 4G services leading to churn in mobile segment of MTNL. Due to this MTNL’s revenue from operation has reduced.
(c) & (d) MTNL has been declared ‘Incipient Sick’ as per DPE Guidelines. DPE guidelines have been issued vide DPE/5(1)2014-Fin.(Part-IX) dated 29.10.2015 for preparation of restructuring/revival plan.
(e) & (f) The “Revival Plan of MTNL” has been received by DoT. The summary of recommendations include focus on customer, defending current revenue and gaining additional revenue, Network CAPEX investment, Asset Monetization – Lease, Sale of real estate, buildings, Lease/sale of Tower, Fiber, Copper and active equipments, Voluntary Retirement Scheme (VRS), Debt restructuring and Synergy in operations of MTNL and BSNL etc.
(g) Steps taken by MTNL for providing better services to its customer is at Annexure.