Digital India project could be a lifeline for MTNL, BSNL

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The Digital India project, which aims at delivering the gamut of government services through cell phone applications, could provide a lifeline to struggling state-run
telecom companies Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd
(MTNL) by way of a near Rs 92,000 crore annual revenue opportunity by 2020.

MTNL has proposed the formation of a separate 50:50 joint venture with BSNL for jointly delivering citizen services across India at a flat rate of Rs 25 per transaction on a nomination basis in internal presentations to telecom secretary Rakesh Garg that ET has seen.

The ambitious revenue outlook is based on an estimated 10 crore citizen service transactions a day by 2020 from 1 crore a day now once the Digital India initiative gains traction, said an MTNL director aware of these presentations.

MTNL and BSNL have approached the telecom department (DoT) to deliver citizen services on a nomination basis to skirt potential
challenges posed by the tendering route,especially since both are chronically loss-making companies and may not meet eligibility criteria.

http://m.timesofindia.com/tech/tech-news/Digital-India-project-could-be-a-lifeline-for-MTNL-BSNL/articleshow/41433984.cms
 
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