BSNL,MTNL merger

H

hammerhead

Adept
Seems there is a merger plan for the two PSU's read on :D
NEW DELHI: The Centre is considering a new strategy for the merger of Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL). In the first phase, the government may form a holding company with BSNL and MTNL as its subsidiaries. After three years, the two PSUs would be merged into one entity.
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the complete link is given below
Govt may re-route MTNL-BSNL merger- The Economic Times
 
same here, although haven't read the article but some things :-

1. MTNL is a listed co. while BSNL is an unlisted company. So MTNL would need to call an EGM & take permission from its shareholders. How would the share swap happen & would BSNL become a listed company or would MTNL unlist?

2. The kind of emolument package given to MTNL staff is much better than BSNL. Neither BSNL would like to raise salaries nor would MTNL workers & staff would like to work for less salaries.

3. MTNL has lot of efficiencies built over the years which results over the years have resulted in good profiting for the company. The work culture is far more professional in MTNL than BSNL

I'm sure I can come up with many more integration issues but another thing would be if such a merging happens would tht create some kind of monopolistic thing. The Competition Commission of India would need to look into tht. The good thing would be it would create a big behemoth so lower costs which should lead to better calls, lower costs & less call failures. If anything such a merger would take anything between 2-5 years to complete.
 
Just read in the paper that Mtnl is the most trusted telecom company in India. The survey was conducted by Reader's Digest.
 
Can you trust RD's surveys? Those who said Mumbai is the rudest city should have been around after the bomb blasts.

Knowing the sort of questions they asked in order to figure the rudest city, I am sure they must have gone around asking ppl "which company is the service provider for your landline phone?"

Obviously a huge percentage will say MTNL.

RD is not exactly a specialist in conducting surveys
 
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