Lok Sabha Question No. 248 (UNSTARRED), answered on 2018-12-12
Subject: Losses in MTNL
Ministry: COMMUNICATIONS
Asked by: SHIVAJI ADHALRAO PATIL, SHRIKANT EKNATH SHINDE, Shrirang Appa Barne, PRITAM GOPINATH MUNDE, ANANDRAO  ADSUL

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO. 248

## TO BE ANSWERED ON 12 th   DECEMBER, 2018

## LOSSES IN MTNL

248. SHRI ADHALRAO PATIL SHIVAJIRAO: DR. PRITAM GOPINATH MUNDE: SHRI SHRIRANG APPA BARNE: DR. SHRIKANT EKNATH SHINDE: SHRI ANANDRAO ADSUL:

Will the Minister of COMMUNICATIONS be pleased to state:

- (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?

## ANSWER

## 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:

| Financial Year   | Profit /(Loss) for the period   | (in Rs. Crores)   |
|------------------|---------------------------------|-------------------|
| 2015-16          | (2005.74)                       |                   |
| 2016-17          | (2970.57)                       |                   |
| 2017-18          | (2970.65)                       |                   |

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.

## Some of the salient initiatives of MTNL are as below:

-  Expansion of GSM / 3G RF network in Delhi: MTNL is in the process of expansion of mobile network by adding 1080 nos. of 3G sites for upgrading Data handling capacity to 10 Gbps. Purchase Order for Rs. 295 Cr. has been placed on 18.06.2016.  Purchase Order for Rs. 48 Cr has been placed for up gradation of existing 720 nos. of 3G Node-B for High Speed Packet Access (HSPA)+ capability.
-  3G  Network  Up-Gradation  in  Mumbai: To  improve  network  capabilities  and  provide better speed MTNL is upgrading the existing 3G network (720 Node-Bs) at a cost of Rs 28  Cr.  Software   Up-gradation  for  the  existing  Node-Bs  has  been  implemented  for HSPA+  and  324  Node  B's  have  been  integrated  in  IP  for  21Mbps  (Mega  bytes  per second) speed.
-  Microwave  Backhaul  Connectivity: In  Delhi,  Purchase  order  for  adding  800  new Hybrid Microwave hops at the total cost of Rs 19.36 Cr  and upgradation / replacement of  754  no.  of  existing  TDM  Microwave  hops  to  Hybrid  Microwave  hops  of  400  Mbps capacity  at the total cost of Rs 18.75 has already been placed.  In Mumbai, upgradation/ replacement of 497 no. of existing TDM Microwave hops to Hybrid Microwave hops of 400 Mbps capacity are already placed for total cost of Rs 11.54 Cr.
-  Synergy with BSNL: To enhance the synergy in between MTNL and BSNL in line to the MOU signed between these two companies, BSNL has been requested to take care of Billing of Leased Lines / Land Line / Broadband of MTNL. Work has been started already to make over Leased Circuit data for billing purpose. In addition, BSNL has also allowed MTNL to share its STP for Mobile network of MTNL Delhi and Mumbai.
-  Redeployment  of  DSLAMs  (Digital  Subscriber  Line  Asynchronous  Mode)  of existing Broadband Network: MTNL has launched a special program to progressively increase  the  fibre  length  by  redeploying  the  broadband  nodes  (DSLAMS)  near  to  the subscriber premises in Delhi and Mumbai thereby reducing copper length and enhancing the quality of broadband service. 186 DSLAMs in Delhi and approx.164 in Mumbai have been redeployed thereby reducing copper length and enhancing the quality of Broadband service. This has improved customer experience and reduced the number of complaints.
-  Fibre to the Home (FTTH): MTNL has finalized and made operational its new policy to engage partners on revenue share basis to extend its FTTx services.
-  Provision  of  High  Speed  Internet  on  FTTH  and  Wi-Fi  at  the  Hon'ble  M.Ps residences: The House Committee, Lok Sabha has assigned MTNL the work to provide high speed Broadband on FTTH and Wi-Fi services at the residences of Hon'ble MPs in Delhi.  The  project  includes  OFC  laying,  FTTH  provisioning  and  Wi-Fi  equipment installation at 790 residences of Hon'ble MPs in New Delhi and involved laying of 86 Km of Optical fiber cable in 11 rings. MTNL has provided FTTH connections to 750 MPs in their  residential  accommodations  in  New  Delhi.  The  Wi-Fi  service  has  also  been activated at 728 residences. The Project cost of about Rs 43.2 Crore is funded by DoT.
-  ATC project for Mumbai Traffic Police: MTNL has extended bandwidth to ATC (Area Traffic  Control)  Project  of  Mumbai  Traffic  Police  for  Road  Traffic  Monitoring.  125 Locations of ATC were given OF and Copper Bandwidth. 8 Locations of ATC on Eastern Freeway  were  extended  OFC  bandwidth.  23  more  locations  are  planned  to  be connected in ATC.

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