MTNL may function as a Virtual Network Operator (VNO) under BSNL

Mahanagar Telephone Nigam Limited (MTNL) might soon be functioning as a Virtual Network Operator (VNO) under Bharat Sanchar Nigam Limited (BSNL), as the Centre faces a challenge in merging the two public sector telcos BSNL and MTNL.

It is learnt that the arrangement would be such that MTNL would provide and manage landline, mobile and broadband services for BSNL. Initially, BSNL can begin by offering these services in Mumbai and New Delhi via MTNL. However, nothing is confirmed as of yet.

The Department of Telecommunications (DoT) has requested the apex institution of the telecom industry, Digital Communications Commission (DCC) for the approval of this plan. The approval hasn’t come yet.

At present MTNL only provides its telecom services in Mumbai and New Delhi within India. The operator outside India also offers its services in Mauritius. As per media report, MTNL might soon be operating under BSNL as a VNO.

A virtual network operator is a party that doesn’t own the network but leases the bandwidth from another company to provide telecom services. MTNL would be able to use the infrastructure of BSNL to operate. This would help the telecom operator to save a lot of its money and resources.