MTNL, BSNL JV withdraws long distance application

Millennium Telecom, a joint venture in which Mahanagar Telecom Nigam Ltd has 51 per cent stake with the rest owned by Bharat Sanchar Nigam Ltd, has withdrawn its application for an international long distance (ILD) licence.

"Millennium Telecom has withdrawn the licence application and will not pursue it," MTNL Chairman and Managing Director RSP Sinha said.

MTNL has already received a letter of intent for its ILD licence.

Instead, MTNL is in the process of amending the companies article, a part of Press Note 5, to seek an ILD licence. Once the amendments are approved, MTNL will pursue the licence application.

Industry experts say BSNL already has an ILD licence, so it does not make sense for it to be part of another company. Also, the department of telecommunications is unlikely to give a licence to the joint venture if one of its constituents already has an ILD licence.

BSNL and MTNL have tied up to lay an undersea cable line to connect South East Asia and West Asia.

All operators had their own undersea cables and it made sense for the government operators to have their own, Sinha said.