According to sources, the two telecom PSUs are not able to provide services throughout the country "on competitive basis" due to geographical restrictions as per licence conditions, while their privately-run rivals are providing pan-India services.
"BSNL and MTNL have decided to sign an MoU (Memorandum of Understanding) to create synergy between the two organisations to provide pan-India services," sources said.
MTNL provides services in Delhi and Mumbai while the rest of the country is covered by BSNL.
As per the agreement, MTNL would avail the network of BSNL only for national roaming service for its subscribers except in Delhi and Mumbai.
In the same way, BSNL will only use MTNL network for roaming services to its customers in Delhi and Mumbai.
MTNL would offer all its NLD (national long distance) traffic to BSNL except for the traffic between Delhi and Mumbai.
Sources said there will be greater synergy between the two organisations on operational issues, commercial issues, customer delivery, IT integration, infrastructure sharing and business promotion.
Both the firms will sign the pact on mutually-agreed conditions for revenue sharing.
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