According to news reports, BSNL has endorsed the proposal for the unification of MTNL with BSNL in order to increase synergies in the working of the two PSUs. Of the two routes that have been earmarked by the ICICI Securities report, BSNL favours making MTNL its subsidiary instead of directly merging with it. MTNL had earlier shown its dissatisfaction with the subsidiary route and had said this move would not deliver the results of synergy, cost reduction and unified command that it sought to achieve. The government had given ICICI Securities the task of studying the possibility of a merger between the two PSUs.
