MTNL to provide telecom services by way of JVs

BANGALORE: Mahanagar Telephone Nigam Ltd. (MTNL) has been empowered to provide telecom services within and outside India by way of joint venture (JV) or partnership and to fix, modify, increase or decrease tariffs for any of the services it provides.

According to an amendment in the memorandum of association and articles of association of the company effected in an extra ordinary general meeting, the tariff fixed will be subject to the policy of the government and directives, regulations of the Telecom Regulatory Authority of India (TRAI). The amendments are a part of the autonomy and delegation of powers granted to the MTNL as a "navratna'' public sector enterprise to incur capital expenditure on new or replacement items without any monetary ceiling and to enter into JVs, sources said. The amendments have enabled MTNL to buy back its own shares.

The board of directors have approved the business plan for MTNL to have alliances with IT industries for developing telecom related software packages and also for expanding its operations in India. The board has decided to appoint an international consultant for preparation of business plan to increase the value of MTNL stock in India and abroad. The board has also approved the future plans of MTNL for providing services, Internet access, virtual private network, telecommuting, distance learning, e-commerce applications and mobile services based on GSM technology. Also approved by the board is the formation and incorporation of a subsidiary company called Millennium Telecom Ltd. and the proposal for revision of Internet tariff.