MTNL profits fall 33%

31 Jan 2006

Indian telco MTNL has reported a 33% decline in net profit for its fiscal third quarter, despite income from its mobile operations surging 125% in the period. According to unaudited financial results, net profit for the three months ending 31 December fell to INR127 million (USD2.8 million) on the back of a lowering of the Access Deficit Charge. Income from mobile operations climbed to INR153.4 million, up from INR68.2 million a year earlier.

Government-run MTNL was created in 1986 to provide local and long-distance services in the cities of New Delhi and Mumbai. Since the opening up of the long-distance market in September 2000 it has been able to offer services nationwide, although its coverage remains relatively small compared to fellow state-run telco BSNL. MTNL provides WiLL telephony in its licence regions, under the Garuda brand name, though subscribers to the service account for less than 5% of its fixed line customer base. It launched DSL broadband services, under the ‘Triband’ banner, in early 2005. MTNL provides GSM services in the metro region circles of Delhi and Mumbai, where it has operated under the brand name Dolphin since February 2001.

India, Mahanagar Telephone Nigam Limited (MTNL)