Disinvest in MTNL before its value erodes -- Rajagopalan

Disinvest in MTNL before its value erodes -- Rajagopalan
PRESS TRUST OF INDIA

NEW DELHI, JUNE 27: "What has happened to Maruti Udyog Ltd (MUL). After competition came in the automobile sector, MUL's value has declined sharply over the years. Let this not happen to MTNL," S Rajagopalan, chairman and managing director of MTNL told PTI.

Government has more than 56 per cent stake in the telecom giant.

He said that a strategic sale in the company and preferably to a foreign partner would be ideal for MTNL to take on competition from new private players. He, however, declined to name any foreign company.

The process of bringing in a strategic partner in the company should be initiated in a time-bound manner starting with a pure business alliance and leading to equity participation, he said.

Rajagopalan said that a business alliance for some period, at least one year, was necessary to see strategic partner's commitment in the company and to give partner a hands-on experience about the functioning of the company.

MTNL, which is likely to be listed on New York Stock Exchange (NYSE) in July, is expected to start GSM cellular services in Delhi and Mumbai in October this year.

Rajagopaln said the company was getting in touch with their international lawyers to expedite the clearance from the Securities Exchange Commission (SEC).

MTNL, American Express JV for telecom credit card

NEW DELHI: Mahanagar Telephone Nigam Ltd (MTNL) and American Express Travel Related Services today entered into an alliance for India's first co-branded telecom credit card - MTNL American Express Credit Card.

"The alliance with American Express will enable MTNL to offer consumers a convenient way of paying their phone bills and avail of the benefits of using an American Express Credit Card," MTNL chairman and managing director S Rajagopalan told reporters here.

The MTNL American Express Credit Card would offer consumers a credit of 1.7 per cent on phone charges billed to the card each year, American Express Travel Related Services India vice-president Sanjay Rishi said.

MTNL American Express Credit Card offers card member the convenience of charging their phone bills to the co-branded card with no service charge, together with preferential access to MTNL services like Calling Line Identification, combined with the value features of American Express Cards like balance transfer facility and global validity and acceptance, he said.

The Card also comes with free travel insurance up to Rs five lakh and loss liability protection, he said. (PTI)