Mahanagar Telephone Nigam Limited (MTNL) plans to overhaul its marketing and customer care operations in Delhi and Mumbai. This comes after Kapil Sibal, Minister of Communications and IT, requested the operator?s management to enhance revenues by 25 per cent by March 2012.
This implies that MTNL will need to garner an additional Rs 10 billion as additional revenues over the next nine months. It is believed that the operator garnered revenues of Rs 40 billion in financial year 2011.
Therefore, in the short term, the company has asked its marketing and customer care units in Delhi and Mumbai to focus on the enterprise business and improve call completion rates in their GSM networks.
In 2010-11, MTNL reported a net loss of Rs 28.26 billion, an 8.27 per cent increase over the previous financial year.
The company is also financially crunched, keeping in mind the Rs 70 billion bridge loan it took to purchase 3G and BWA spectrum in Delhi and Mumbai in 2010.
While a portion of MTNL’s bridge loans have been restructured, the company can only invest in new projects after its existing debt is cleared. Currently, MTNL is in the process of raising another Rs 15 billion of secured loans from private and public sector banks to reduce debt and meet long-term capex requirements.
Currently, MTNL?s Mumbai circle generates 60 per cent of its revenues, while Delhi generates the remaining 40 per cent.
