MTNL shares surged by 9% to Rs 57.50 in morning trade on February 10. This followed the Union Cabinet’s approval of a Rs 6,000 crore package to fast-track 4G network expansion for BSNL and MTNL. The funding aims to strengthen their network infrastructure.
Over three sessions, the stock has gained 13% and is up 23% in the past month. Nearly one lakh 4G sites will be installed to improve connectivity and services. However, an additional Rs 6,000 crore will be needed for the full rollout.
Since 2019, the government has committed Rs 3.22 lakh crore to BSNL and MTNL through three revival packages, including support for 4G deployment. These measures helped BSNL-MTNL become operationally profitable in FY21.
