Japanese telecom gaint Softbank recorded a loss of $350 million for last nine months of 2016 in the fair value of the Company’s investments in India. The loss comes on top of a $555 million writedown on the value of Softbank’s India portfolio in the six-month period ending September 2016. “With reference to the current markdown, portfolio…
Mahanagar Telephone Nigam Ltd has informed the telecom department it is keen to sell a 50 per cent stake in wholly-owned unit Millennium Telecom (MTL) to Bharat Sanchar Nigam Ltd to create an equally owned joint venture for delivering citizens’ services as part of the Narendra Modi government’s Digital India initiative.
The proposal is aimed at unlocking cost-efficiencies since Millennium Telecom will have a negligible licence fee payout obligation to the government as it’s not a licensed telecom operator. MTNL or BSNL will have to fork out 8 per cent of annual revenue generated from the Digital India project as licence fees if either of them participate directly.
“We’ve offered a 50 per cent stake in our subsidiary to BSNL as we believe Millennium with its reduced tax burden will be more competitive than either its parent or BSNL to deliver low-cost citizens’ services,” an MTNL director told ET. Original post by Kalyan Parbat/ET Telecom