Mahanagar Telephone Nigam Limited (MTNL) has reportedly decided to ink revenue-sharing arrangements with other companies to launch new services, say news reports. This is to stem its financial losses.
MTNL has already floated an expression of interest for outsourcing its broadband wireless access (BWA) business. The deal would be based on a revenue sharing arrangement. The winner would have to manage the services and network.
The company expects to launch BWA services in the second half of 2012.
Further, it is believed that MTNL was scrutinising various options to lease out its land assets and create a new stream of revenues.
The company has reported a net loss of Rs 28.26 billion in 2010-11, an 8.27 per cent increase from Rs 26.11 billion in 2009-10.
The company?s losses can be attributed to high wage-related bills and falling revenues, owing to stiff competition in the telecom industry.
The company has also asked the Department of Telecommunications (DoT) to approve a voluntary retirement scheme that will be offered to 15,000 employees, of its workforce.
The proposal has already been cleared by the MTNL board. The scheme will require MTNL to make a one-time payment of Rs 20 billion-30 billion. It has asked and the company has asked DoT for financial assistance to implement the scheme.
