Shares of Mahanagar Telephone Nigam Ltd (MTNL) soared 9% to hit an intraday high of Rs 57.50 on 10 February after it was announced that the Union Cabinet had approved a Rs 6,000 crore financial package to speed up the 4G network expansion plan of Bharat Sanchar Nigam Limited (BSNL) and its subsidiary, MTNL.
The financing is intended for both state-run telecom companies to strengthen and extend their network infrastructure.
About one lakh 4G sites will be installed as part of the effort to improve user connections and network services. However, for the entire rollout, an additional Rs 6,000 crore in funding is expected to be required.
The government has provided BSNL and MTNL with a total of Rs 3.22 lakh crore since 2019 through three revival packages, one of which includes 4G rollout support. These steps helped BSNL-MTNL achieve operational profitability in FY21.
BSNL, which oversees MTNL’s operations in Delhi and Mumbai, has struggled to retain customers as a result of its poor 4G penetration.
At 2:22 pm, the shares of MTNL were trading 2.86% higher at Rs 53.90 on NSE.
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