The department of telecom (DoT) has called for a meeting on March 21 to discuss the options suggested by ICICI Securities (I-Sec), the consultant appointed by the government to look into the possibilities of synergies of BSNL and MTNL.The first option suggested by the merchant banker is to make MTNL a subsidiary of BSNL. "In case of MTNL becoming a subsidiary of BSNL, an IPO of BSNL will have to be done," DoT officials said. MTNL has already opposed the subsidiary route saying it is not going to deliver the desired results of synergy, cost reduction and unified command. The second option is that MTNL is merged with BSNL, officials said. The options suggested by I-Sec are based on a 5-point criteria including competitive position, shareholder value, cost implication and execution difficulties.After the report is discussed, the government will assess it and finalise one option after incorporating the views of both the PSUs as well as the consultant.
