MTNL may pay Rs 2.5 cr for NLD licence

The state-owned Mahanagar Telephone Nigam Limited is likely to pay Rs 2.5 crore as upfront fees for a national long distance licence tomorrow. MTNL has already got the government's approval for it.

Getting the licence was aimed at expanding the company's service portfolio and revenues, MTNL sources said.

"We have not yet taken the licence, but we are planning to pay the fees tomorrow," an MTNL official said.

The PSU's decision to apply for an NLD licence has come in the backdrop of BSNL's notice to it, asking it to pay up for using Videsh Sanchar Nigam's long distance circuit.

The brass in BSNL and MTNL had decided not to communicate to the media anymore on the issue to avoid a war through the media, sources in both companies said. It is believed Communications Minister Dayanidhi Maran will soon broker peace between the companies.

BSNL has discounted the possibility of losses in the event of MTNL deciding to break its long-distance call relationship with the company.

"We are not bothered with the loss of business as even then we will receive termination charges for calls made to the states of Orissa, Bihar and Uttar Pradesh," a BSNL official said. According to the official, MTNL is raising a hue and cry over the whole issue as it fears it will go into the red if it has to pay outstanding fees to BSNL."

The current round of controversy was a last-ditch attempt by MTNL to arm twist BSNL to continue payment concessions, the BSNL official alleged. If MTNL moved its business to a private player, it would not enjoy benefits offered by BSNL to a sister public sector unit, he said.

In the past, when a similar controversy between the two PSUs broke out, the communications minister intervened and directed MTNL to pay BSNL Rs 288 crore.