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MTNL May Issue Preferential Shares To Launch 4G Services, Looks To Raise Rs 6,292 Cr: Report

MTNL is planning to launch 4G data services on the 1,800 Mhz and 2,100 Mhz spectrum in New Delhi and Mumbai.

Mahanagar Telephone Nigam Ltd(MTNL) has sought the government’s nod for issuance of preferential capital worth Rs 6,292 crore as it prepares to launch 4G services. The state-owned telecommunication service will soon release a tender to select a gear vendor partner for the rollout.

MTNL is planning to launch 4G data services on the 1,800 Mhz and 2,100 Mhz spectrum in New Delhi and Mumbai.

“We have submitted a plan for preferential equity, and without diluting the company’s ownership, we have said that we will issue preferential capital of equivalent amount which is coming at Rs 6,292 crore for 4G launch,” MTNL Chairman PK Purwar told the Economic Times.

The Centre has a 56 percent stake in MTNL, while 19 percent is held by Life Insurance Corporation (LIC), and the rest is with the public.

There are indications that the government will consider this proposal positively, Purwar added, a positive development for the ailing company. He said that the tender for equipment vendors will be floated as soon as the Cabinet approves this move. Once the radiowaves are allocated, the company will take six-eight months to roll out high-speed data services.

In the first quarter of the FY19, MTNL’s standalone net loss was Rs 900 crore and full year’s loss was Rs 2,973 crore. The company has over 8 million subscribers including 1.1 million broadband consumers. – Money control

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