MTNL shares zoom 10% as cabinet approves Rs 6,000 crore package for 4G expansion
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MTNL shares zoomed 10.3% in early trade to their day’s high of Rs 57.56 on the BSE on Monday, February 10 after the Union Cabinet approved an additional Rs 6,000 crore funding for Bharat Sanchar Nigam (BSNL) to support its 4G expansion. The funds will address a shortfall in planned capital expenditure for BSNL and its subsidiary, Mahanagar Telephone Nigam (MTNL). Officials aware of the details told ET that the proposal was approved at the February 7 Cabinet meeting. ET had reported first about the government plan in its September 4 edition. BSNL, which is also managing the operations of MTNL in Delhi and Mumbai, has been losing customers due to lack of pan-India 4G services. The state-run firm managed to add customers for 3-4 months after private telcos increased tariffs in July last year but has now reverted to losing users. The companies hope to minimise the users attrition once the 4G services are rolled out across the country. BSNL is...