Mahanagar Telephone Nigam Limited (MTNL) has appointed SBI Capital Markets to evaluate the feasibility of scope for investments in its Nepal-based unit, United Telecom Limited (UTL). SBI will assist MTNL in deciding whether to make further investments in UTL.
UTL is also planning to acquire a GSM licence for providing mobile services in the country. Consequently, MTNL, along with SBI Capital Markets, will evaluate the viability of entering the mobile telephony market, which is currently dominated by state-run telecom operator Nepal Doorsanchar Company Limited (NDCL) and NCell.
UTL is a joint venture between MTNL, Telecommunications Consultants India Limited (TCIL), Tata Communications and Nepal-based company Nepal Ventures Private Limited (NVPL). MTNL holds 26.68 per cent stake in UTL, while TCIL and Tata Communications and NVPL hold 26.66 per cent each. The remaining stake is held by NVPL.
Currently, UTL has presence in 44 out of about 75 districts. It has only 2 per cent market share in voice telephony business with about 500,000 customers.
