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MTNL has been incurring losses for a number of years and was declared as incipient sick as per the Department of Public Enterprises guidelines.
The minister said it has been a phase of consolidation in the telecom sector acorss the world and India cannot be insulated from it.
BSNL operates in 20 telecom circles of the country while MTNL has operations in remaining 2 telecom service area- Delhi and Mumbai.
DoT today unveiled a strategic plan for bringing together state-owned companies and organisations in the sector for promoting greater operational synergy among them.
Union minister Manoj Sinha said the government is also considering equipping MTNL and BSNL to start providing 4G services.
The merger in order to give them a “fighting chance” at survival -- a merged company is expected to give it the clout necessary to take on the might of private sector.
The committee was informed by the communications ministry that 'revival plan' prepared by consultant Deloitte has been considered by the MTNL Board in their meeting in March 2017.
The company announced that customers buying its Rs 99 data coupons will get 1.5 GB data with a validity of 30 days against 500 MB earlier. Similarly Rs 19 coupon will now provide triple data at 750 MB