MTNL and BSNL have finalised the structure and other issues involved in the setting up of their 50:50 joint venture, to be named Millennium Telecom Company. The company will oversee construction and operation of the PSUs’ undersea cable business.
The shareholder agreement will reportedly be finalised shortly. As per the deal, MTNL will only act as an infrastructure provider and not as an international long distance service provider.
Moreover, in case of divestment of equity, the first right of refusal of equity would be given to the other partner. The companies must also sign an undertaking to use MTNL’s infrastructure for a minimum period of 20 years.
