A SERVICE AGREEMENT between state-run MTNL and BSNL will enable the former to take debt from the latter for maintenance of its assets in the form of inter-corporate debt (ICD).
The agreement is part of the arrangement wherein MTNL's telecom services in Delhi and Mumbai circle will be run by BSNL, which does not provide services in these two circles.
MTNL's revenue and Ebitda (earnings before interest, taxes, depreciation, and amortisation) have been declining over several years and the telco has consequently defaulted in repayment of its debts and liabilities.
With the BSNL service agreement, the government wants to operate MTNL on an Ebitda-neutral basis.
Analysts, however, said the success of such a structure is dependent on the success of 4G and 5G in Delhi and user wins.
Even for maintaining MTNL's assets, BSNL, which is also loss-making, may face financial strain if it has to repeatedly step in, especially if MTNL's losses continue over the long term, analysts said.
Bu hikaye Financial Express Kolkata dergisinin December 20, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Financial Express Kolkata dergisinin December 20, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
EU escalates pressure on Apple to open up features to rival firms
CHANGING DYNAMICS OF WEARABLES INDUSTRY
EU escalates pressure on Apple to open up features to rival firms
THE EU's EUROPEAN Commission has pressed Apple Inc. to further open up the iPhone operating system to rivals, prompting the company to complain about requests from Meta Platforms Inc. that it says will undermine privacy.
Apple concedes smartwatch market leadership to Huawei
CHANGING DYNAMICS OF WEARABLES INDUSTRY
Bollywood's investments in startups decrease sharply to $3.6 mn in 2024
INVESTMENTS BY BOLLYWOOD celebrities in startups came down sharply in the current calendar year to $3.6 million against $28.5 million last year, data shared by Tracxn showed.
India-Pak ICC matches at neutral venues
THE DEADLOCK OVER the hosting of next year's Champions Trophy finally ended on Thursday when the ICC announced that India will play their matches of the 50-over event at a neutral venue instead of host country Pakistan, which will get a similar arrangement for tournaments to be held in India till 2027.
Book Rahul Gandhi for assault: BJP to police
THE SHOWDOWN ON the premises of Parliament on Thursday reached police within hours with the BJP accusing Rahul Gandhi, Leader of Opposition in Lok Sabha, of \"physical assault\" and \"incitement\" while the Congress, in a counter-complaint, alleged that BJP MPs caused injuries to Mallikarjun Kharge, Leader of Opposition in Rajya Sabha, by pushing him to the ground.
Fed's 2025 signal roils D-Street
THE SENSEX HAS lost 3.55%, or 2,915 points, in the last four trading sessions, eroding investment wealth of over ₹10 lakh crore (in three sessions).
Book Rahul Gandhi for assault: BJP to police
CHARGES FLY AFTER UGLY SCENES IN PARLIAMENT
Campaign's relatability adds charm to storytelling
Why the campaign rocks:In today's world, where information is available at the click of a button, travel & holiday booking apps face challenges far beyond simply outpacing competitors.
'Focus on product differentiation; consumer loyalty will follow'
Q-COMMERCE IS CONTRIBUTING TO OUR ONLINE SALES GROWTH. IN FACT, IT'S BECOMING VERY MEANINGFUL, VERY FAST\"
