State based telecom companies BSNL and MTNL have entered into a mutual profit making agreement with the Indian Air Force. According to this agreement these two telecom companies will come together to provide the IAF with a wide range of telecom services. On the other hand IAF would give BSNL and MTNL space for installing their telecom towers and other equipment. Also the IAF will give them the “most preferred service provider” status.
“The objective is to enable BSNL and MTNL to provide IAF full gamut of telecom services, including basic telephony, mobile telephony, broadband services, internet services and leased lines, MPLS-VPN and VSAT services, on concessional tariff,” BSNL said in a statement.
The telecom services provided to IAF under this agreement will have CUG facility and VAT services on mobile phones . Vat will also be provided on landline phones. Optic fiber connectivity which is needed by the IAF will also be provided. “System integration solution will also be explored among telcos and Indian Air Force,”the statement said.
Rumours are rife that the telecom department is planing to enter into a huge alliance with the research body C-DoT, service providers MTNL and BSNL, India Telephone Industries (ITI) and also Telecommunication Consultants of India Ltd (TCIL) to gel their operations together for a smoother functioning. Sharing of telecom assets like their services and buying and selling of products at affordable rates between them would be possible after this merger.
This step is being viewed as a progressive step in cutting competition from the private sector telecom service companies. This step will surely give a new face to these state owned telecos.