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BSNL and MTNL, two leading Indian telecom operators have gotten into an agreement with the Indian Air Force to give them host of services at nominal prices. The agreement also states that IAF will give space for installation of towers and equipment.

The two companies will be providing IAF a full gamut of telecom services, including basic telephony, mobile telephony, broadband services, internet services and leased lines, MPLS-VPN and VSAT services, on concessional tariff.
Telecom services will include CUG facility on mobile phones and value added services on mobile and landline phones, optic fiber connectivity as per IAF requirements. System integration solution will also be explored among telcos and Indian Air Force.

The joint agreement with IAF is also a step towards synchronizing their businesses as the Department of Telecommunications is examining the feasibility of merging telecom PSUs ITI and MTNL with BSNL in line.

Recently, the Board for Reconstruction of Public Sector Enterprises has recommended that state-run BSNL, which operates in 20 circles, should merge its counterpart MTNL, which has operation on two metros, and telecom equipment manufacturer ITI with itself — a move that will help turnaround the loss-making telecom giant, according to agency reports.

While government is working on the process to merging these PSU, both BSNL and MTNL have started synergizing their operations.

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