MTNL's FY10 capex at Rs 1,722 cr; Suntel buy-out on backburner

[Kalyan]

MTNL's FY10 capex at Rs 1,722 cr; Suntel buy-out on backburner

State-run MTNL is likely to draw a capex of a little over Rs 1,700 crore in the current fiscal on network expansion, broadband and new initiatives such as Fibre-To-Home for faster delivery of its interactive services.

The PSU targets to add of 10 lakh subscribers, including 3G users, in Delhi and Mumbai in the current fiscal.

"We have drawn a Budget of Rs 1,722 crore for the current fiscal. We will spend the amount on wireless, broadband and Fibre-To-The-Home (FTTH). On the FTTH, we will have to lay fibre to the customers' premises for carrying interactive content like High Definition TV on which the expenses will be Rs 200 crore," a senior MTNL official said.

"MTNL is targeting an additional 10 lakh subscribers in both the metros. We have at present 40 lakh subscribers in both the cities," the official said.

The PSU, which was pursuing acquisition of Sri Lankan firm Suntel, has put the plans on the back burner due to a number of reasons including lack of clarity on the legal liabilities of Suntel.

"There has been no progress in the deal, as a result it has not reached the finality. There are legal complications of Suntel with one of its old customers which have not been settled yet," the official said.

MTNL had submitted a bid for Suntel in September 2007.

MTNL has announced partnership with local fibre-optic cable firm Aksh Optifibre for offering services, including high-definition IPTV, over its new network.

The other ares in which the capex will be utilised are: introducing a convergent billing platform to ensure one signle bill for the customer for all its services --mobile, fixed line, broadband, 3G and IPTV, the official said.

For convergent billing, the PSU has selected a consortium which has Bharat Electronics Ltd and IBM among others.

source : economic times